Chapter 11 - Refunds of Tax
Article 73 - Refund of Tax to Tourists
The Authority — in accordance with the mechanism it determines — may allow tourists to be refunded the tax paid on eligible goods purchased in the Kingdom, which they carry with them upon their departure from the Kingdom.[128]
The Authority may authorize one or more service providers to offer services to tourists for the purpose of facilitating tax refunds from the Authority, and the Authority shall determine the approved service providers.[129]
For the purposes of implementing the provisions of this Article, a “tourist” means any natural person who meets all of the following conditions: [130]
Has no permanent place of residence in the Kingdom or in any of the GCC Member States that apply VAT.
Is not a member of the crew of an aircraft, ship, or any other means of transport leaving the Kingdom.
Any additional conditions in accordance with paragraph 12 of this Article.
For the purposes of this Article, “eligible goods for refund” means goods purchased for personal use from an approved supplier. The following goods are not considered eligible for refund: [131]
Vehicles, boats, and aircraft.
Tobacco products, derivatives, and substitutes.
Food and beverages.
Oil, gas, and their derivatives.
Goods that have been used or consumed within the Kingdom.
Any other goods or conditions specified in accordance with paragraph (12) of this Article.
The tourist shall submit the refund request to the Authority while present in the Kingdom through an approved service provider, who shall process the tax refund on the tourist’s behalf.[132]
The approved service provider shall ensure that the refund request satisfies all the requirements stipulated under this Article and shall pay an amount equivalent to that approved for refund to the tourist. The approved service provider may—by agreement with the Authority—deduct a percentage of that amount as a commission in consideration for providing the tax refund facilitation service, in addition to any other applicable administrative fees.[133]
The Authority may verify the validity of refund applications submitted by the approved service provider on behalf of the tourist and ensure that the provider has met all the requirements stipulated under this Article. The Authority may also request any additional documents from the provider as deemed necessary.[134]
The Authority may reject refund requests submitted by the approved service provider on behalf of the tourist—wholly or partially—if it determines that any of the requirements stipulated under this Article have not been met. If the Authority approves the refund request—wholly or partially—it shall pay the approved refund amount to the approved service provider. The Authority may not issue or amend any assessment related to refund requests stipulated in this Article after the lapse of five (5) years from the end of the calendar year during which the Authority received the refund request.[135]
The approved service provider shall retain all paper or electronic documents and records related to refund requests submitted to the Authority for the period specified under Article 66 of these Regulations.[136]
The approved service provider shall be jointly liable with the tourist for the repayment of any amounts refunded in violation of the procedures and provisions related to refunds stipulated under this Article or the decisions issued by the Authority regarding the refund of tax to tourists.[137]
By way of exception to subparagraph (a) of paragraph (3) of this Article, tourists from GCC States shall be treated as tourists from outside the GCC region until the implementation of the electronic service system referred to in Article 79 of these Regulations.[138]
The Governor of the Authority may issue the requirements necessary for implementing the provisions of this Article. Such requirements shall include the following: [139]
The requirements and stages for implementing the tourist tax refund mechanism.
The additional conditions for considering a natural person as a tourist and for considering goods as eligible for refund.
he minimum value requirements for goods eligible for refund.
The requirements necessary to consider a taxable supplier as an approved supplier.
The requirements for submitting refund applications.