1. In accordance with the Agreement and the Law, the Authority may allow designated Persons not carrying on an Economic Activity, or those engaged in designated Economic Activity, to apply for a refund of Tax paid by them on Supplies of Goods or services received in the Kingdom. The Minister of Finance may issue an order setting out a list of Persons considered an Eligible Person for the purpose of this article from time to time.
2. In accordance with the Agreement and the Law, Foreign Governments, International Organizations, Diplomatic and Consular Bodies and Missions may also be authorised by the Minister of Finance as Eligible Persons to request the refund of the Tax incurred on Goods and services in the Kingdom, and to be included on the list issued by way of an order issued by the Board of Directors.
3. An Eligible Person may submit an application to allow that Person to submit refund applications. Upon acceptance of the application, the Authority will issue an individual identification number to an Eligible Person. This number shall be quoted by the Person on all refund applications and in correspondence with the Authority.
4. An Eligible Person may submit a refund application in respect of either a quarterly period or a calendar year. Only one refund application can be submitted in respect of any quarterly period or calendar year.
5. All refund applications must be submitted within six months from the end of the calendar year to which the claim period relates.
6. The refund application may only include Tax paid on Goods and services for which a Tax Invoice dated within the indicated refund period is held by the Taxable Person at the time the application is submitted.
7. In cases where a government body, or an entity, is an Eligible Person, it will only be allowed to apply for a refund insofar as that body or entity is not acting in a commercial capacity.
8. Tax will not be refunded in respect of Supplies of Goods and services which are prescribed by article fifty of these Regulations to not be incurred in the course of a Taxable Person’s Economic Activity.
9. A refund application may not be submitted in respect of a total value of incurred Tax which is less than one thousand (1,000) riyals.
10. The following information in respect of the Goods and services supplied to the Eligible Person shall be included with each refund application:
a) name and Tax Identification Number of the Supplier,
b) invoice date,
c) invoice number,
d) total invoice amount,
e) VAT amount,
f) a description of Goods or services. the purchased
11. The Authority may request copies of Tax Invoices or additional information from the Eligible Person either electronically or in physical form. In such cases, the applicant must provide the requested information within twenty (20) days from the Authority’s request.
12. After processing the claim, the Authority will issue a notification to the Eligible Person.
13. If the claim is approved either partially or in full, the Authority will make the payment to the bank account indicated by the Eligible Person in the application within sixty (60) days from issuing the notification.
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