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Our free VAT calculator lets you add or remove Saudi Arabia's 15% Value Added Tax from any price in SAR. Calculate net amounts, gross amounts, and the VAT due for invoicing, accounting, and everyday shopping. VAT is administered by ZATCA and applies to most goods and services.
The standard VAT rate in Saudi Arabia is 15%. A few supplies are zero-rated (0%) or exempt, but most goods and services are taxed at the standard rate. When in doubt, verify the correct treatment with ZATCA or a tax advisor.
To find the VAT to add to a net price, use the following formula:
Add the VAT amount to the net price to get the gross (VAT-inclusive) price:
As above, the standard rate is 15%. Use this rate unless the supply is specifically zero-rated or exempt.
To find the VAT already included in a gross price, use this formula:
Subtract the VAT amount from the gross price to get the net (pre-VAT) price:
A product has a net price of 1,000 SAR. VAT at 15% is 150 SAR, so the gross price is 1,150 SAR. Working backwards from a gross price of 1,150 SAR, the VAT included is 1,150 × (15 / 115) = 150 SAR, and the net price is 1,000 SAR. Amounts on tax invoices are shown in Saudi riyals (SAR) and typically rounded to two decimal places (halalas).
Most goods and services: 15%
In force since 1 July 2020 (raised from the original 5%)
Qualifying supplies: 0%
Exports outside the GCC and qualifying international transport
Selected supplies: No VAT charged
Certain financial services and some real estate transactions
VAT is administered by the Zakat, Tax and Customs Authority (ZATCA), which also runs the mandatory e-invoicing programme known as Fatoora.
Registration is mandatory when annual taxable supplies exceed SAR 375,000. Voluntary registration is available from SAR 187,500 in taxable supplies.
VAT-registered businesses must issue compliant electronic invoices under ZATCA's e-invoicing rules, which are being rolled out in phases by taxpayer size.
Saudi Arabia operates a VAT refund scheme for eligible visitors on qualifying purchases from participating retailers, subject to ZATCA conditions.
Saudi tax and Zakat regulations can be confusing for foreigners. Get matched with an accountant who speaks English and knows the rules for expats.
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To add 15% VAT, multiply the net price by 0.15 and add it to the price: VAT = net price × 0.15, and gross price = net price × 1.15. For example, 1,000 SAR + 15% VAT = 150 SAR VAT and 1,150 SAR total. To remove VAT already included in a gross price, divide by 1.15 to get the net price.
Yes. Saudi Arabia's standard VAT rate is 15%, which applies to most goods and services. VAT was introduced on 1 January 2018 at 5% and increased to 15% on 1 July 2020. It is administered by the Zakat, Tax and Customs Authority (ZATCA).
To add VAT: VAT = price × 0.15 (for the 15% Saudi rate), and gross price = net price × 1.15. To find VAT already included in a gross price: VAT = gross price × (15 ÷ 115). To remove VAT: net price = gross price ÷ 1.15.
To remove 15% VAT from a VAT-inclusive (gross) price, divide the price by 1.15 to get the net price: net price = gross price ÷ 1.15. The VAT portion is the difference, or gross price × (15 ÷ 115). For example, 1,150 SAR ÷ 1.15 = 1,000 SAR net, with 150 SAR of VAT.
The standard VAT rate in Saudi Arabia is 15%, applied to most goods and services. VAT was introduced on 1 January 2018 at 5% and increased to 15% on 1 July 2020. It is administered by the Zakat, Tax and Customs Authority (ZATCA).
Registration is mandatory when your annual taxable supplies exceed SAR 375,000. Businesses with taxable supplies above SAR 187,500 can register voluntarily, which lets them recover input VAT on business purchases. Registration is completed online through ZATCA.
To extract VAT from a VAT-inclusive amount, use: VAT amount = Gross amount × (VAT rate ÷ (100 + VAT rate)). For example, with 15% VAT: if the gross amount is 115 SAR, then VAT = 115 × (15 ÷ 115) = 15 SAR, and the net amount = 100 SAR.
Yes. Some supplies are zero-rated (0%), such as exports outside the GCC and qualifying international transport. Certain financial services and some real estate transactions may be exempt from VAT. Because these categories can be technical, confirm the treatment of a specific supply with ZATCA or a tax advisor.
Saudi Arabia operates a VAT refund scheme for eligible visitors on qualifying purchases made from participating retailers, subject to conditions set by ZATCA. Keep your tax invoices and follow the refund process when leaving the country.
VAT-registered businesses can generally recover input VAT paid on purchases used to make taxable supplies, such as inventory, equipment, and professional services. Some costs are restricted or blocked from recovery, and proper tax invoices must be retained to support any claim.
Filing frequency in Saudi Arabia depends on the size of the business: larger taxpayers generally file monthly, while smaller taxpayers may file quarterly. Returns and payments are submitted through ZATCA by the applicable deadline. Confirm your filing period and due dates in your ZATCA account.
Keep your issued and received tax invoices, credit and debit notes, import and export documents, and VAT return records for the retention period required by ZATCA. Invoices must meet ZATCA's content and e-invoicing (Fatoora) requirements, including the correct VAT registration details and rate.
VAT is one part of doing business in the Kingdom. Explore the full VAT rules, ZATCA e-invoicing requirements, and how the wider Saudi tax system works.