VAT refunds in Saudi Arabia: Essential information and how to claim

Can I get a VAT refund?

You can receive VAT refund if:

• Your net tax due is negative (your Input tax > Output tax).
• You have paid excess VAT in your previous payments.
• You have Credit Balance (you end up with a positive balance in your VAT account).

What happens to VAT refunds?

It’s a standard practice to carry forward the refund amount to the taxpayer’s VAT account. These are called tax credits.

Tax credits can be applied to the next VAT return or used at any other time you have a tax liability. However, the taxable person can request to have the refund returned to them instead.

What do I need to do to receive my refund for VAT?

You will receive a VAT refund automatically if you are eligible for it. The standard practice for a VAT refund is to carry forward the amount in the VAT account. These are called tax credits.

Tax credits can be applied to the next VAT return or used at any other time you have a tax liability. However, the taxable person can request to have the refund returned to them instead.