Saudi Arabia will introduce a VAT refund system for tourists in 2025, as outlined in the Saudi Budget statement for the upcoming fiscal year.

The Zakat, Tax, and Customs Authority will oversee the implementation of the system, which is designed to streamline tax compliance and enhance the travel experience.

This initiative underscores Saudi Arabia’s dedication to creating a visitor-friendly environment and attracting more tourists to explore the Kingdom.

As part of its tourism goals, Saudi Arabia aims to attract 127 million visitors by the end of 2025, aligning with the National Tourism Strategy.

The strategy promotes both domestic and international tourism, reinforcing the Kingdom’s position as a global destination of choice.

Tourism spending is projected to reach SR346.6 billion in 2025, contributing significantly to the domestic economy, increasing non-oil revenues, and boosting private sector demand.

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