Saudi tax committees begin accepting VAT refund claims on real estate by individuals

Based on Royal Order No. 54152 dated 5/7/1447H, and in reference to the mechanisms and procedures issued by the Board of Directors of the Zakat, Tax and Customs Authority on 3/3/1448H, the General Secretariat of the Zakat, Tax and Customs Committees has announced the start of accepting applications to register claims for VAT refunds on real estate supplies by individuals executed between 14/04/1439H (January 1, 2018) and the effective date of the Real Estate Transaction Tax regulations on 17/02/1442H (October 4, 2020).

The mechanisms and procedures outline cases where VAT is not considered due on real estate supplies made through sale and transfer of ownership. Individuals who have paid VAT and any related penalties to the Authority may file a claim to request a refund with the General Secretariat of the Zakat, Tax and Customs Committees, provided they meet the conditions specified in the mechanisms and procedures.

To be eligible for a VAT refund, the real estate supply must have been made by an individual (defined as a natural person) who paid VAT on the transaction to the Zakat, Tax and Customs Authority, and who can prove that they do not regularly engage in real estate activities for income generation. Refund eligibility does not apply to individuals who conducted more than one real estate supply within a consecutive 12-month period, where the total value exceeds the mandatory registration threshold under the Unified VAT Agreement for the Gulf Cooperation Council States.

Eligibility for a VAT refund also requires that the individual supplier did not deduct input VAT related to the property.

The General Secretariat stated that individuals who paid VAT to the Authority may submit a claim for a VAT refund and related penalties if all requirements are met. Applications can be submitted via the digital litigation portal "Hiyad" on the General Secretariat's website within 30 days from the publication of the mechanisms and procedures in the Official Gazette, which was on Tuesday, 2 Jumada Al-Awwal 1448H (October 13, 2026).

The Secretariat encouraged individuals to visit its website to review the mechanisms, procedures, and guidance for VAT refund eligibility and claim submission, and to contact them for inquiries via their website: https://gstc.gov.sa/ar/Pages/default.aspx، or by calling the unified number 8001220000.