Saudi Arabia is preparing to roll out a value-added tax (VAT) refund system for tourists from next year with the intention of attracting international visitors. The Saudi Zakat, Tax, and Customs Authority will manage the initiative, aimed at enhancing tax compliance and the tourism experience, according to the Arab news portal Sabq.
The kingdom aims to welcome 127 million visitors by the end of 2025, with an expected revenue of SR346.6 billion coming from tourism. This would be a substantial boost to the economy’s non-oil income and demand for private sector services.
With the VAT refund scheme, foreign tourists will be able to reclaim VAT paid on purchases in a foreign country, thus luring more shopping and tourists.
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Recent Measures to Boost Tourism:
Lately, some of these reforms that the Kingdom of Saudi Arabia has undertaken to make it a center of international tourism have included:
Creating the tourist visa system in 2019 wherein an individual from the citizens of numerous countries can obtain a visa upon arrival or online.
The 2022 introduction of a four-day transit visa enables the person to either perform Umrah, visit the Prophet’s Mosque in Medina or through the Kingdom’s many cultural events.
By that announcement from Tourism Minister Ahmed Al-Khateeb, the number of tourists to Saudi Arabia in 2023 amounted to over 100 million, consisting of 77 million visitors from the country and 27 million international visitors, enough to meet the annual target for tourism in the country.
Saudi Arabia is on its way to securing a spot among the world’s top 10 tourist destinations and thus bolstering itself as the global center for cultural and religious tourism.