Saudi Arabia: Update on VAT refunds to non-residents

Eligibility and process of refund for non-residents and detail on ZATCA’s set of requirements for the refund to be processed

Eligibility and process of refund for non-residents

The Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia published a tax alert on the refund of Saudi Arabian VAT to non-residents who do not have a presence in the country but incurred VAT in relation to their economic activity.

The alert explains the eligibility and process of refund for non-residents and provides some detail on ZATCA’s set of requirements for the refund to be processed.

KPMG observation

The alert decreases the pressure on international business costs from the current practice of limiting zero-rating of services provided to non-residents. However, meeting the requirements will involve substantial preparation, such as substantiating economic activity performed outside Saudi Arabia and proving reciprocity of foreign legislation enabling Saudi Arabian businesses to refund similar VAT and goods and services tax (GST) in a respective foreign country.

For more information, contact a KPMG tax professional:

Philippe Stephanny | +1 202 533 3082 |


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