This article is intended for establishments registered for VAT within the Kingdom. It explains the conditions for reclaiming VAT on purchase invoices, the importance of recording your purchases and expenses in Rewaa to automatically calculate the credit balance, and the process of submitting a refund request through the Zakat, Tax, and Customs Authority (ZATCA) portal.
⚠️ Note: Always refer to ZATCA’s official sources to confirm the latest updates.
Conditions for reclaiming VAT on purchase invoices
Purchases must be subject to VAT (including zero-rated).
Proper documentation showing VAT paid must be available (e.g., a valid tax invoice).
The refund claim must be submitted within five years from the end of the calendar year in which the purchases were supplied.
ℹ️ If you have both taxable and exempt supplies, you must apply an allocation percentage to apportion input VAT between taxable and exempt supplies.
ℹ️ The Executive Regulations prohibit deducting input VAT on certain expenses outside the scope of business, such as entertainment, sports, cultural services, hotel and hospitality services (unless directly for resale). Restrictions also apply to vehicles used for personal purposes, employee benefits, and similar expenses. Always review the latest regulations on ZATCA’s website.
How Rewaa helps you with the refund request
Easily record all your purchase invoices and expenses.
Automatically aggregate input and output VAT from recorded transactions in the Tax Declaration Report.
Show you if you have a credit balance eligible for refund.
Submitting a refund claim
1. Extract VAT declaration data from Rewaa
Go to Reports > Taxes > Tax Declaration.
Review the VAT summary (Output – Input – Net VAT).
If you have a credit balance, it will appear in green under Net VAT for the selected period.
Copy the credit balance from the report to include it in ZATCA’s refund request form.
2. Submit a refund request via the ZATCA portal
Log in to the ZATCA portal.
Go to Indirect Taxes > VAT > VAT Refund Request.
Create a new request and ensure the IBAN is linked to the main record.
Enter the refund details (reference number, period, refund amount).
Submit the request. You will receive a notification once it is received.
⏳ Processing time: Refund requests are processed within 30 days (may vary depending on review and outstanding obligations).
ℹ️ Refund claims may be rejected or delayed if you have pending VAT returns or obligations with ZATCA. Review Article (70) and subsequent provisions for correction and review procedures.
FAQs
Can I claim VAT on old invoices I forgot to include?
Yes, you can claim them in a later period within the five-year limit, provided all other conditions are met.
What if we have mixed expenses (taxable/exempt)?
An allocation percentage must be applied according to the default method in the regulations, and it must be reviewed annually.
What documents are required when submitting the request?
Valid tax invoices, import documents, and any other evidence accepted by ZATCA. You must also comply with statutory record-keeping requirements.
Official references
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