RIYADH — Zakat, Tax, and Customs Authority (ZATCA) clarified that it is not possible to refund the paid value-added tax (VAT) on a car that has been exported from Saudi Arabia.
ZATCA’s clarification came while responding to an inquiry from a Saudi citizen asking about the possibility to receive the VAT refund after his purchase of a car, then exporting 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% if it has been provided by the establishment or by an activity or business owner registered in the VAT system.
The VAT cannot be refunded except by those who are registered in the system when they bear the VAT on their purchases of services and commodities that enables them to practice their economic activity.
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