Politics · Saudi Arabia · 5 hrs ago
Saudi Arabia allows refunds of certain taxes on individual property sales
Saudi Arabia’s tax authority has introduced new rules for VAT on individuals’ property sales.
The rules cover sales by people who did not regularly conduct real estate activity to earn income before the real estate transaction tax took effect on October 4, 2020.
VAT may still be due if someone made more than one sale in 12 months and the combined value exceeded the mandatory VAT registration threshold.
Eligible individuals can seek refunds of tax and penalties they already paid, provided they did not deduct related input tax or receive a refund from another government body.
Unpaid VAT and related penalties that were not due can be cancelled by correcting a tax return or assessment.
Unpaid penalties for property sales from January 1, 2018, to October 4, 2020, may also be waived after the tax owed is paid, except penalties for tax evasion.
Refund claims will be referred to dispute committees within 30 days, and the authority may check eligibility and seek repayment if a claim proves invalid.
Saudi Arabia’s Zakat, Tax and Customs Authority has introduced procedures allowing individuals to reclaim value-added tax and related penalties that were not due on certain property sales.
The measures also allow unpaid, undue tax and penalties to be cancelled, subject to stated conditions.
The rules apply to individuals who did not conduct real estate activity continuously and regularly to generate income before the real estate transaction tax took effect.
Refund claims can be filed if the claimant did not deduct input tax on the property or reclaim the tax from another government entity.
The decision took effect when published in the official gazette on October 13, 2026.
- Who
- Saudi Arabia’s Zakat, Tax and Customs Authority and individuals who sold property.
- What
- The authority introduced procedures to refund or cancel certain value-added tax and related penalties on property sales.
- When
- The decision took effect on October 13, 2026.
- Where
- Saudi Arabia.
- Why
- To allow recovery or cancellation of tax and penalties that were not due under the stated conditions.
This story does not have two clearly opposing sides.
The period began during which unpaid penalties on certain real estate supplies may be waived after payment of the tax due.
The real estate transaction tax was applied, marking the cutoff in the rules for certain individual property sales.
The decision took effect upon publication in the official gazette.
- Tax
- Value-added tax on qualifying sales may be refunded or cancelled if it was not due.
- Penalty waiver period
- January 1, 2018 to October 4, 2020
- Claim referral period
- 30 days
- Effective date
- October 13, 2026
- Eligibility condition
- Claimants must not have deducted input tax on the property or reclaimed the tax from another government entity.
Related
Saudi Shura Council urges universities to strengthen research and financial sustainability
1 hr ago
Saudi teaching master's program sets equal admissions rules
1 hr ago
Saudi Arabia raises readiness as minister says daily life continues normally
1 day ago · 3 sources
IMF committee extends Saudi finance minister's chairmanship to January 2028
4 hrs ago
What people are saying
new mechanisms and procedures that allow individuals to reclaim the value-added tax that is not due on their real estate sales