How does VAT and Umrah fee affect your travel to Saudi Arabia

07.11.2017

How does VAT and Umrah fee affect your travel to Saudi Arabia

It has been confirmed that a five per cent Value Added Tax (VAT) will be introduced across Saudi Arabia at the beginning of 2018. The main purpose of VAT in any nation is to deploy it towards the development of government systems like education, healthcare and other services. Although VAT will apply to most goods and services there are some likely exceptions: this includes basic food items, essential medicines and exports of goods and international services which are expected to be zero rated supplies. Furthermore, other supplies such as healthcare, education, sale or lease of residential property and finance and insurance are expected to be exempt from VAT.

Here, it is important to note that VAT affects the commodities that we purchase. In Saudi Arabia the implementation of VAT will increase the prices of commodities not only for the civilians but also for travelers. Which means that the hotel prices will also rise due to these taxes. This in turn will have an impact on the Umrah and Hajj packages offered by Noori Travels due to an increase in the hotel prices. However, as always there will be no compromise on the experience and Noori Travels will deliver and will live up to its promise of quality.

Moreover, in another news you should know that if you have been for Umrah between October 2016 to July 2017 you will now have to pay 2,000SAR per person extra. According to details issued by Saudi Ministry of Hajj and Umrah, there will not be any additional fees imposed on the Umrah pilgrims this year. However, from next year onwards, Saudi Riyal 2,000 would be imposed on the pilgrims performing Umrah more than once within the same year.

Unfortunately, it might affect the travel plans for many Muslims but it is important for you to know this beforehand as the Umrah packages of Noori Travel will have an impact too due to the extra fee for the second time you want to go to Umrah.

Lastly, we hope that like many other developed nations VAT on spending above $200 are returned to travelers and the extra fee over Umrah is waived for increased accessibility.