Saudi VAT calculator
Rules checked 6 Oct 2026
Uses the standard rate of 15%. Zero-rated and exempt supplies carry no VAT.
How to calculate VAT in Saudi Arabia
Saudi Arabia charges VAT at 15%. The rate rose from 5% to 15% on 1 July 2020 and has stayed there since. The two calculations are the same as anywhere else; only the rate changes.
Adding VAT. Multiply the price before VAT by 0.15.
- Price before VAT: SAR 4,000
- VAT: 4,000 × 0.15 = SAR 600
- Total: SAR 4,600
Taking VAT out. Divide the VAT-inclusive total by 1.15. You can also use total × 15 ÷ 115.
- Total: SAR 4,600
- Before VAT: 4,600 ÷ 1.15 = SAR 4,000
- VAT: SAR 600
Taking 15% of the total by mistake gives SAR 690 here, which is SAR 90 too much. At 15%, this error is three times bigger than it would be at the UAE’s 5%, so it is worth getting right.
Prices shown to consumers
Prices shown to consumers in Saudi Arabia must include VAT. If you see a shelf price of SAR 57.50, the VAT inside it is 57.50 × 15 ÷ 115 = SAR 7.50, and the price before VAT is SAR 50.
Supplies without 15% VAT
Some supplies are zero-rated, such as exports outside the GCC, international transport, and certain medicines and medical equipment. Others are exempt, such as residential rent and some financial services. Sales of real estate are generally outside VAT and fall under the separate 5% Real Estate Transaction Tax. Our guide to Saudi VAT covers the main categories.
Saudi VAT compared with the UAE
| Saudi Arabia | UAE | |
|---|---|---|
| Standard rate | 15% | 5% |
| Mandatory registration | SAR 375,000 | AED 375,000 |
| Voluntary registration | SAR 187,500 | AED 187,500 |
| E-invoicing | Live since Dec 2021, integration in waves | Mandatory from 2027 |
Frequently asked questions
Do I add VAT if my business is not registered?
No. Only registered businesses charge VAT. Check whether you need to register with our Saudi VAT registration checker.
Does every invoice need a QR code?
Electronic invoices under ZATCA’s e-invoicing rules carry a QR code, and simplified (B2C) invoices must show it. See standard vs simplified tax invoices.
How do I handle VAT on a deposit?
VAT is generally due when payment is received or the invoice is issued, whichever comes first. A deposit received before supply usually triggers VAT on the deposit amount.
Can I show prices to business customers without VAT?
Yes, B2B quotes and invoices commonly show the amount before VAT, the VAT and the total. Prices shown to consumers must include VAT.
How do I calculate the VAT on a SAR 1,000 total?
1,000 ÷ 1.15 = SAR 869.57 before VAT, and SAR 130.43 of VAT.