SAUDI ARABIA. In big breaking news for the fast-growing Saudi travel retail industry, the Zakat, Tax and Customs Authority (ZATCA) has approved a tax scheme that allows travellers to be exempted from customs duties and taxes when purchasing at duty-free arrivals stores at all land, sea and air customs points in the Kingdom.
The Saudi Arabia tax authority made this announcement yesterday, noting that the move seeks “to improve the logistical services provided to duty-free shop operators at customs ports in arrival and departure halls”.
ZATCA added that the new duty-free regulations will help enhance travellers’ experience during their visit to the Kingdom.
According to the new regulation, the tax exemption applies to travellers whose purchases from arrival duty-free stores do not exceed SR3,000 (US$800), with the purpose of the purchase having to be for personal use.
The revised rule also indicates that travellers are allowed a maximum of 200 cigarettes per purchase.
As an extension of the licences it grants to duty-free shop operators in departure zones, ZATCA has started receiving applications for permits to operate arrival duty-free stores at customs ports. The applications are from operators who have completed regulatory procedures with authorities at designated points, under the rules and regulations on duty-free markets.
The authority had previously issued the customs rules, conditions and procedures for establishing duty-free markets at air, sea and land ports, based on the unified customs system for the Gulf Cooperation Council countries.
These new regulations were made after the Cabinet in 2022 approved the creation of duty-free shops in airport arrivals zones, land borders and seaports across Saudi Arabia. ✈
