A VAT Refund Saudi Arabia Guide

How to get VAT Refunds from A VAT Refund Saudi Arabia Guide for your business

Are you planning on opening a business in Saudi Arabia? Keep reading to understand the current state of the VAT in Saudi Arabia.
以下は、サウジアラビアにおけるVAT還付対象経費の種類、VAT税率、申請締切日、還付申請期間を記載した、VAT還付申請の詳細情報です。
saudi-arabia|円形フラッグの視覚装置

Where is your company based?

EU

BASED BUSINESSES

euマップ透明|VAT IT|付加価値税還付サウジアラビアガイド

VAT-registered businesses in an EU member state are eligible to recover VAT on business costs from A VAT Refund Saudi Arabia Guide under the EU VAT Refund Directive.

NON-EU

BASED BUSINESSES

非EUマップ透明|VAT IT|付加価値税還付サウジアラビアガイド

VAT-registered businesses outside of the European Union are eligible to recover VAT on business costs from A VAT Refund Saudi Arabia Guide under the 13th Directive.

Which countries have reciprocity with A VAT Refund Saudi Arabia Guide?

オーストリア、ベルギー、ボスニア・ヘルツェゴヴィナ、カナダ、デンマーク、フィンランド、フランス、アイスランド、アイルランド、ルクセンブルク、マケドニア、マルタ、オランダ、モンテネグロ、ノルウェー、スウェーデン、スイス、イギリス

VAT還付申請における互恵主義の詳しい説明はこちらをご覧ください。

Saudi Arabia’s VAT Rates:

Low or no taxes have long been a hallmark of Gulf states like Saudi Arabia and the United Arab Emirates. However, to diversify revenue streams in the face of falling oil prices, the Kingdom of Saudi Arabia introduced a value-added tax or VAT rate of 5% in 2018. As one of the first countries in the region to develop a VAT, all eyes are on how this new program will continue to change—and change the region.

Already, the Kingdom has tripled the initial standard rate to arrive at a VAT rate of 15%. This VAT increase occurred near the beginning of the COVID-19 pandemic—when most other countries were lowering VAT rates.

 

Current Rates in Saudi Arabia

Saudi Arabia’s VAT scheme is relatively simple, comprising only two rates:

  • Standard (15%) – The standard rate applies to all food and beverages, domestic transportation, commercial real estate leasing, private education and healthcare services, and domestic oil and gas products.
  • Zero (0%) – Zero-rated products and services include international transportation, maintenance and repair costs for qualified vehicles, medicine, medical equipment, and exports.

Interestingly, while private education and healthcare services are subject to VAT, the Saudi Arabian government will cover these taxes for its citizens.

How to Pay Your VAT Bill in Saudi Arabia

If you exceed the monthly threshold of SAR 375,000 (approximately USD 100,000), you must register with the Saudi tax authorities within 20 days.

Businesses with annual taxable supplies exceeding 40 million Saudi riyals (USD 10 million) must file monthly, while businesses below that threshold will instead file quarterly. All payments are due by the last day of the month following the end of each tax period. To submit your VAT return online, log into the government e-portal and follow the steps for VAT submission.

VAT payments are to be made to the General Authority of Zakat and Tax (GAZT) via bank transfer using the SADAD payment system (a central invoicing system designed by the Saudi Arabian Monetary Agency). SADAD facilitates payments through ATMs, as well as via online banking.

Saudi Arabia VAT Compliance

To avoid penalties and fines, it’s worth familiarizing yourself with Saudi Arabia’s VAT regulations. VAT compliance requirements mandate that you:

  • Keep all accounts and records (in Arabic) for at least six years
  • Hire a Saudi tax representative to oversee invoicing and documentation
  • Convert all foreign payments to Saudi riyals before submission
  • Submit all returns on time

If you are owed a credit for any reason, you must request your refund as you file your VAT return. Compliance with VAT refund Saudi Arabia regulations entails that you provide an IBAN (international bank account number) with your report linked to your company or personal identification number.

Saudi Arabia’s VAT implementation is still in its early stages. As such, deciphering all of the VAT rules and regulations can be challenging. If you need support with obtaining a VAT refund, navigating Saudi Arabia’s changing policies, or submitting a return, VAT IT is here to help.

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Sources: 

BBC. Saudi Arabia and United Arab Emirates introduce VAT for first time. https://www.bbc.com/news/business-42508883

Al Arabiya. Saudi Arabia will consider cutting VAT rate: Finance minister. https://english.alarabiya.net/business/economy/2022/05/24/Saudi-fiscal-sustainability-to-target-reserves-not-falling-below-certain-GDP-pct-Min

Zakat, Tax and Customs Authority. Value Added Tax (VAT). https://zatca.gov.sa/en/RulesRegulations/VAT/Pages/default.aspx 

Zakat, Tax and Customs Authority. VAT General Guideline. https://zatca.gov.sa/en/RulesRegulations/VAT/Documents/VAT_Guideline_Agents_EN.pdf

 

What expenses are claimable in A VAT Refund Saudi Arabia Guide?

ENTERTAINMENT & HOSPITALITY

play 001|付加価値税IT|VAT還付サウジアラビアガイド

エンターテイメント

0%
ベッド001|VAT IT|VAT還付サウジアラビアガイド

ホテルと宿泊施設

15%
eat 001|VAT IT|VAT還付サウジアラビアガイド

レストラン

0%

EVENTS

マイク001|VAT IT|VAT還付サウジアラビアガイド

国際会議・展示会・イベントなど

15%
コンベンション001|VAT IT|VAT還付サウジアラビアガイド

トレーニング、セミナー

15%

GENERAL EXPENSES

グッズ001|VAT IT|VAT還付サウジアラビアガイド

品物

15%
会社情報001|VAT IT|VAT還付サウジアラビアガイド

親子会社間請求

15%
chair 001|VAT IT|VAT還付サウジアラビアガイド

事務所経費

15%
megaphone 001|VAT IT|VAT還付サウジアラビアガイド

マーケティングコスト

15%
docs 001|VAT IT|VAT還付サウジアラビアガイド

プロフェショナル費用、買掛金請求

15%

TRAVEL RELATED

カー001|VAT IT|VAT還付サウジアラビアガイド

レンタカー

0%
fuel 001|付加価値税IT|VAT還付サウジアラビアガイド

ガソリン

0%
鉄道001|VAT IT|VAT還付サウジアラビアガイド

公共交通機関

0%
| VAT IT|VAT還付サウジアラビアガイド

タクシー

0%

Additional Information

How far back can your business claim VAT from A VAT Refund Saudi Arabia Guide?
前年の1月から12月まで
What’s the foreign VAT deadline in A VAT Refund Saudi Arabia Guide?
毎年6月30日(インボイス日付の暦年の末日から6か月以内)
How long does it take to receive a VAT refund from A VAT Refund Saudi Arabia Guide?
申請内容や、税務当局の状況にもよりますが、10カ月ほどかかります。

Need help with your VAT refund from A VAT Refund Saudi Arabia Guide?

当社にお任せください。20年以上にわたり、企業の海外VAT還付をサポートしてきた当社には、貴社の還付金を迅速に処理するための知識と技術があり、VAT税務当局からの不測の問い合わせに対応します。

各国のVATガイドをダウンロードしてください。申請期限にお気をつけください。

vatit ヘッダーロゴ|VAT IT|付加価値税還付サウジアラビアガイド