Tax Refund & Offset Claims
Written in plain language for general understanding. This is educational content, not legal advice. Based on Saudi royal decrees, regulations, and ministerial decisions.
Saudi National Law
What is this right?
If you have overpaid tax or have excess VAT input credits, you can claim a refund or offset:
- Income tax/Zakat refund: If ZATCA's final assessment is lower than what you paid, you can request a refund of the excess.
- VAT refund: If your input VAT exceeds output VAT (common for exporters), you can claim a refund or carry the credit forward.
- Offset: Overpayments can be offset against future tax liabilities instead of receiving a cash refund.
- Processing time: ZATCA aims to process refund requests within 60 days, but complex cases may take longer.
- Tourist refunds: Tourists can claim VAT refunds on purchases through the Planet Tax Free scheme at airports.
When does it apply?
- You have overpaid tax or Zakat based on a reassessment or calculation error.
- Your business has excess VAT input credits.
- You are a tourist leaving Saudi Arabia with qualifying purchases.
What should you do?
- Submit a refund request through the ZATCA online portal with supporting documentation.
- For VAT refunds, ensure your tax invoices are compliant and your records are accurate.
- Follow up with ZATCA if the refund is not processed within the expected timeframe.
What should you NOT do?
- Do not wait too long — refund claims have limitation periods.
- Do not submit incomplete documentation — this delays processing significantly.
- Do not claim refunds for exempt or non-deductible input VAT — only VAT on business-related taxable supplies is refundable.
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