Article 9 of the Saudi Real Estate Transaction Tax Law

This article deals with the right to a tax refund, and specifies the cases in which it is refunded:

1. Payment in excess or by mistake: tax paid in more than what was due, or paid by mistake, is refunded.
2. A disposition that was not completed: tax paid on a real estate disposition that was not completed is refunded.
3. A disposition that was cancelled: tax paid on a real estate disposition that was cancelled is refunded, on condition that all the conditions in sub-paragraph (21) of paragraph (a) of Article 3 are met. Cancellation alone is not enough; the text of that sub-paragraph must be consulted and all its conditions checked.

The article refers to the Regulations to set the procedures, rules and periods for the refund, so the text does not state the period for submitting a refund request or its method, which are found in the Regulations.

This article is linked to Article 8, which gives the Authority the power to verify the value of the disposition and recalculate the tax; just as tax can be recalculated upward, someone who paid more than what was due is entitled to recover the difference. It is also linked to Article 10, which gives the Authority the right to request any information available with any person for the purposes of applying the Law and the Regulations, which may relate to verifying refund requests.

Anyone whose refund request is refused, or who is not sure the conditions for refund are met in the case of a cancelled disposition, should consult a lawyer who specializes in real estate and tax cases.