In 2025, the Gulf Cooperation Council (GCC) countries, which include Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Bahrain, Qatar, and Oman, have introduced several important tax-related measures. While no new tourist-specific taxes have been introduced, several tax policies impacting the tourism industry have either been implemented or updated, which are likely to influence the cost of travel and the overall business landscape in the region. These tax-related developments include the introduction of VAT refund schemes for international visitors, adjustments to corporate taxes, changes to excise taxes, and the implementation of the Domestic Minimum Top-Up Tax (DMTT) in certain countries. This article delves into these developments in the context of the broader tourism industry and explores the potential implications for travelers visiting the GCC countries in 2025.

Saudi Arabia: Introduction of VAT Refund Scheme for International Tourists

Saudi Arabia, a significant player in the GCC tourism sector, introduced a major development in 2025 with the launch of a Value Added Tax (VAT) refund scheme for international tourists. The move is part of the country’s broader strategy to boost its tourism sector, which is an integral component of its Vision 2030. This VAT refund program, effective from April 18, 2025, allows international tourists visiting Saudi Arabia to claim refunds on the 15% VAT paid on eligible goods and services purchased during their stay in the kingdom. The tax refund initiative has been designed to enhance Saudi Arabia's appeal to tourists, particularly those from non-GCC countries.

In 2025, the Gulf Cooperation Council (GCC) countries, which include Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Bahrain, Qatar, and Oman, have introduced several important tax-related measures. While no new tourist-specific taxes have been introduced, several tax policies impacting the tourism industry have either been implemented or updated, which are likely to influence the cost of travel and the overall business landscape in the region. These tax-related developments include the introduction of VAT refund schemes for international visitors, adjustments to corporate taxes, changes to excise taxes, and the implementation of the Domestic Minimum Top-Up Tax (DMTT) in certain countries. This article delves into these developments in the context of the broader tourism industry and explores the potential implications for travelers visiting the GCC countries in 2025.

Saudi Arabia: Introduction of VAT Refund Scheme for International Tourists

Saudi Arabia, a significant player in the GCC tourism sector, introduced a major development in 2025 with the launch of a Value Added Tax (VAT) refund scheme for international tourists. The move is part of the country’s broader strategy to boost its tourism sector, which is an integral component of its Vision 2030. This VAT refund program, effective from April 18, 2025, allows international tourists visiting Saudi Arabia to claim refunds on the 15% VAT paid on eligible goods and services purchased during their stay in the kingdom. The tax refund initiative has been designed to enhance Saudi Arabia’s appeal to tourists, particularly those from non-GCC countries.