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Saudi Arabia Introduces VAT Refund for Public Benefit Project Donors
The Zakat, Tax and Customs Authority outlines criteria for eligible donations aimed at public welfare initiatives.
The Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia has launched a new service aimed at refunding value-added tax (VAT) for individuals and organizations that contribute to public benefit projects.
This initiative is part of the government's efforts to encourage donations towards various societal developments including mosques, healthcare facilities, educational institutions, and other charitable endeavors.
According to the ZATCA, the eligibility for VAT refunds is extended to donors who sponsor or contribute towards the implementation of these public benefit projects.
The authority emphasized that all donations must adhere to specific regulations that govern the criteria for qualifying as an eligible donor for VAT reimbursement.
Prospective donors interested in this refund service are advised to familiarize themselves with the relevant regulations and guidelines, which include details about what constitutes an eligible donation and the procedures for registration.
These resources are available on the ZATCA's official website, which also features a user guide outlining the necessary steps for registering as an eligible donor.
Key requirements for VAT refunds include the submission of approval documentation from the relevant authority overseeing the public benefit project, in addition to a formal contract or agreement for the project's implementation.
It is noted that if the donor is a legal entity carrying out the project themselves, the contract requirement may not apply.
Furthermore, donors must not be in a position to reclaim the VAT as input tax, which typically applies to entities such as real estate developers or other organizations that are eligible to recover tax.
To facilitate inquiries and provide assistance, the ZATCA has established multiple communication channels, including a unified call center at 19993, an account on the X platform (@Zatca_Care), and email support through info@zatca.gov.sa.
Alternatively, potential donors can also engage with ZATCA via instant chat on the authority's website.
This initiative is part of the government's efforts to encourage donations towards various societal developments including mosques, healthcare facilities, educational institutions, and other charitable endeavors.
According to the ZATCA, the eligibility for VAT refunds is extended to donors who sponsor or contribute towards the implementation of these public benefit projects.
The authority emphasized that all donations must adhere to specific regulations that govern the criteria for qualifying as an eligible donor for VAT reimbursement.
Prospective donors interested in this refund service are advised to familiarize themselves with the relevant regulations and guidelines, which include details about what constitutes an eligible donation and the procedures for registration.
These resources are available on the ZATCA's official website, which also features a user guide outlining the necessary steps for registering as an eligible donor.
Key requirements for VAT refunds include the submission of approval documentation from the relevant authority overseeing the public benefit project, in addition to a formal contract or agreement for the project's implementation.
It is noted that if the donor is a legal entity carrying out the project themselves, the contract requirement may not apply.
Furthermore, donors must not be in a position to reclaim the VAT as input tax, which typically applies to entities such as real estate developers or other organizations that are eligible to recover tax.
To facilitate inquiries and provide assistance, the ZATCA has established multiple communication channels, including a unified call center at 19993, an account on the X platform (@Zatca_Care), and email support through info@zatca.gov.sa.
Alternatively, potential donors can also engage with ZATCA via instant chat on the authority's website.
