Logo ofGeneral Secretariat of the Zakat, Tax and Customs Committees
The General Secretariat of the Zakat, Tax and Customs Committees started accepting requests to register claims for refunds of value-added tax (VAT) on real estate supplies made by individuals during the period from Jan. 1, 2018, to Oct. 4, 2020. 
In a statement, the secretariat said the procedure is based on Royal Order No. 54152, dated July 5, 1447 AH, and the mechanisms and procedures approved by the Board of the Zakat, Tax and Customs Authority (ZATCA).
The mechanisms and procedures specify cases in which VAT is not due on real estate supplies involving sales and transfer of ownership. Individuals who paid VAT on such cases, along with any related fines, to ZATCA may file claims with the General Secretariat of the Zakat, Tax and Customs Committees to seek refunds, subject to the specified requirements.
To qualify 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 ZATCA. The individual must also be proven not to have engaged in real estate activity involving the regular and continuous sale of properties for income-generating purposes. Refund eligibility does not extend to individuals who carried out more than one real estate transaction within 12 consecutive months, with the combined value exceeding the mandatory VAT registration threshold under the Unified VAT Agreement for the GCC States.
Another requirement is that the individual who made the real estate supply must not have deducted input VAT related to the property.
The secretariat noted that individuals who paid VAT to ZATCA may file claims to recover the tax and related fines on real estate transactions, provided they meet all applicable requirements. Claims can be submitted through the HAYAD digital litigation portal on the secretariat’s website within 30 days from the date the mechanisms and procedures were published in the Official Gazette. The procedures were published on Oct. 13.
The Committees urged individuals to visit its website and review the mechanisms, procedures and guidance manual on VAT refunds to learn more about eligibility requirements and how to file a claim.
Logo ofGeneral Secretariat of the Zakat, Tax and Customs Committees
The General Secretariat of the Zakat, Tax and Customs Committees started accepting requests to register claims for refunds of value-added tax (VAT) on real estate supplies made by individuals during the period from Jan. 1, 2018, to Oct. 4, 2020.
In a statement, the secretariat said the procedure is based on Royal Order No. 54152, dated July 5, 1447 AH, and the mechanisms and procedures approved by the Board of the Zakat, Tax and Customs Authority (ZATCA).
The mechanisms and procedures specify cases in which VAT is not due on real estate supplies involving sales and transfer of ownership. Individuals who paid VAT on such cases, along with any related fines, to ZATCA may file claims with the General Secretariat of the Zakat, Tax and Customs Committees to seek refunds, subject to the specified requirements.
To qualify 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 ZATCA. The individual must also be proven not to have engaged in real estate activity involving the regular and continuous sale of properties for income-generating purposes. Refund eligibility does not extend to individuals who carried out more than one real estate transaction within 12 consecutive months, with the combined value exceeding the mandatory VAT registration threshold under the Unified VAT Agreement for the GCC States.
Another requirement is that the individual who made the real estate supply must not have deducted input VAT related to the property.
The secretariat noted that individuals who paid VAT to ZATCA may file claims to recover the tax and related fines on real estate transactions, provided they meet all applicable requirements. Claims can be submitted through the HAYAD digital litigation portal on the secretariat’s website within 30 days from the date the mechanisms and procedures were published in the Official Gazette. The procedures were published on Oct. 13.
The Committees urged individuals to visit its website and review the mechanisms, procedures and guidance manual on VAT refunds to learn more about eligibility requirements and how to file a claim.
