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May 15, 2026

ZATCA outlines the framework for Value Added Tax refunds to Eligible Persons, specifically focusing on diplomatic missions and international organisations. While domestic purchases attract the 15% standard rate, missions registered via the Ministry of Foreign Affairs (MOFA) can reclaim VAT subject to reciprocity conditions. Claims must exceed SAR 1,000 and can be submitted quarterly or annually. The circular clarifies documentation standards, including requirements for simplified tax invoices and the strict exclusion of VAT related to commercial activities. It implements Article 70 of the Implementing Regulations and Article 69 of the Unified VAT Agreement.

VAT Refunds for Diplomatic Missions

Tax Circular | VAT

1. Subject Matter of this Circular

2. Definitions

3. An Overview of VAT Refunds to Eligible Persons

4. The Diplomatic Mission

5. Process for Registering Diplomatic Missions as Eligible Persons

6. Expenditures and Expenses Qualifying for a Refund

7. Submitting a VAT Refund Request

7.1. Refund Periods
7.2. Submitting accurate claims
7.3. Not required Claims if a VAT Refund is not due
7.4. Required Information
7.5. Submission a VAT refund request process

The Zakat, Tax and Customs Authority ("ZATCA", "Authority") has issued this Tax Circular for the purpose of clarifying certain tax treatments concerning the implementation of the statutory provisions in force as of the Circular's issue date. The content of this Circular shall not be considered as an amendment to any of the provisions of the Laws and Regulations applicable in the Kingdom.

Furthermore, the Authority would like to highlight that the clarifications and indicative tax treatments prescribed in this Circular, where applicable, shall be implemented by the Authority in light of the relevant statutory texts. Where any clarification, interpretation or content provided in this Circular is modified - in relation to unchanged statutory text - the updated indicative tax treatment shall then be applicable prospectively, in respect of transactions made after the publication date of the updated version of the Circular on the Authority's website.

Subject Matter of this Circular

This Circular considers an overview of the requirements, process and obligations of "Eligible Persons" making special refund claims of Value Added Tax ("VAT") on expenditure, purchases and costs paid within the Kingdom by Law. This circular discusses the payment of a refund to the eligible designated persons.

Definitions

Terms and phrases contained in this Circular shall have the meanings ascribed to each of them unless the context requires otherwise:

Contents

Subject Matter of this Circular

Definitions