VAT of a Car Exported from Saudi Arabia cannot be Refunded

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Riyadh September 10, 2022:

Zakat, Tax and Customs Authority (ZATCA) clarified that it’s not possible to refund the paid value-added tax (VAT) on a car that has been exported from the Kingdom of Saudi Arabia. This clarification came while responding to an inquiry from a Saudi citizen asking about the possibility to receive VAT refund after he purchased a car, then exported it from the Kingdom.

He was asked to get a VAT refund in Saudi Arabia after he paid another new VAT in the country to which he exported the car to.

It stated that all the services and commodities are subjected to the VAT with a percentage of 15 percent if it has been provided by the establishment or by an activity or business owner registered in the VAT system.

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