Expense rules in Saudi Arabia.
All ZATCA rules: 15% VAT, mission allowances and VAT recovery rules in Saudi Arabia.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 15% | 100% reclaimable | ZATCA standard |
| Travel meals | 15% | 100% reclaimable | Subsistence cap |
| Accommodation | 15% | 100% reclaimable | FATOORA e-invoice |
| Fuel | 15% | 100% reclaimable | Business records |
| SAPTCO bus / flight | Variable | 100% reclaimable | Public transport |
| Taxi / Uber / Careem | 15% | 100% reclaimable | E-receipt |
| Client gifts | 15% | Limited | ZATCA reasonable limit |
| Parking | 15% | 100% reclaimable | FATOORA |
FATOORA
Mandatory e-invoicing since 2021.
Per diem
MNC standard.
Retention
ZATCA records: 6 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | SAR 1/km | By company | Standard practice |
| Motorcycle | SAR 0,50/km | By company | Reduced rate |
MNC practice
Private sector standard.
Records
Date, destination, km.
Covers
Subsidized fuel in SA.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Riyadh | SAR 250 | SAR 900 | SAR 1,150 |
| Jeddah / Dammam | SAR 250 | SAR 800 | SAR 1,050 |
| Senior executive | SAR 600 | SAR 1,800 | SAR 2,400 |
| Foreign — Dubai | SAR 700 | SAR 2,000 | SAR 2,700 |
| Foreign — London | SAR 1,500 | SAR 4,500 | SAR 6,000 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on FATOORA.
No statutory rate
No mandatory ZATCA cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| SA → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | No reciprocity | — | No agreement |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| SA VAT for foreign | Business Visitor Refund | 30 June N+1 | ZATCA portal |
Business Visitor
Min annual refund.
Eligible countries
Updated ZATCA list.
FATOORA required
Mandatory e-invoice for refund.
Industrialize your Saudi Arabia expenses with Illizeo.
15% VAT, FATOORA OCR, MNC per diem, multi-currency SAR↔USD↔EUR↔CHF, Business Visitor refund: all the ZATCA rules above are natively integrated into Illizeo.
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