VAT Calculator — Saudi Arabia
Calculate VAT in Saudi Arabia at the standard rate of 15%. Add VAT to a net price or remove VAT from a gross price. Enter the amount and click calculate — the VAT portion, net, and gross are all shown.
VAT in Saudi Arabia
VAT (Value Added Tax) was introduced in Saudi Arabia on 1 January 2018 at 5%. It was increased to 15% on 1 July 2020. The 15% rate applies to most goods and services — a few categories have 0% or are exempt.
ZATCA (Zakat, Tax and Customs Authority) administers VAT in Saudi Arabia. Businesses with annual taxable turnover above SAR 375,000 must register for VAT. Between SAR 187,500 and SAR 375,000, registration is optional. Below SAR 187,500, no VAT registration is required. VAT-registered businesses must file returns monthly or quarterly, depending on turnover.
Saudi VAT Formula
Adding VAT (net → gross):
VAT = Net × (Rate ÷ 100)
Gross = Net + VAT
Removing VAT (gross → net):
Net = Gross ÷ (1 + Rate ÷ 100)
VAT = Gross − Net
The standard rate is 15%. Some supplies are zero-rated (0%): exports of goods and services, international transport, and certain medicines and medical equipment. Some supplies are exempt (no VAT charged, no input VAT recoverable): certain financial services, residential real estate (sale or lease), and local transport.
Worked Example
Adding VAT to SAR 1,000:
VAT = 1,000 × 15% = SAR 150
Gross = 1,000 + 150 = SAR 1,150
Removing VAT from SAR 1,150:
Net = 1,150 ÷ 1.15 = SAR 1,000
VAT = 1,150 − 1,000 = SAR 150
Note: VAT as % of gross is 13.04% (150 ÷ 1,150), not 15% — this is a common mistake. If you subtract 15% from the gross, you get SAR 977.50, which is not the correct net. You must divide by 1.15, not subtract 15%.
VAT Registration and Filing in Saudi Arabia
- Mandatory registration — annual taxable turnover above SAR 375,000
- Optional registration — annual taxable turnover between SAR 187,500 and SAR 375,000
- No registration — below SAR 187,500
- Monthly filing — businesses with annual turnover above SAR 40 million
- Quarterly filing — all other VAT-registered businesses
- Filing deadline — last day of the month following the end of the tax period
- Payment — same as filing deadline
Frequently Asked Questions
What is the current VAT rate in Saudi Arabia?
The standard VAT rate in Saudi Arabia is 15%, effective from 1 July 2020. The original 5% rate (from 1 January 2018) was tripled to raise revenue during the pandemic. The 15% rate is one of the highest in the GCC region (UAE is 5%, Bahrain 10%, Oman 5%). Saudi Arabia has not announced plans to change the rate as of 2025.
What goods are zero-rated or exempt?
Zero-rated (0%): exports, international transport, certain medicines and medical equipment, investment-grade precious metals. Exempt: certain financial services, residential real estate sale or lease, local passenger transport, and bare land. Zero-rated means you charge 0% and can recover input VAT; exempt means you charge 0% but cannot recover input VAT. The distinction matters for businesses.
How do I register for VAT in Saudi Arabia?
VAT registration is done through the ZATCA portal (zatca.gov.sa). You need your Commercial Registration (CR), National ID or Iqama, bank account details, and information about your business activity and expected turnover. Once registered, you receive a VAT registration number (VAT number) that must be quoted on all invoices. Registration is mandatory once turnover exceeds SAR 375,000 in a 12-month period.
How often must I file VAT returns?
Filing frequency depends on annual turnover. Businesses with turnover above SAR 40 million must file monthly. All other VAT-registered businesses file quarterly. Filing deadlines are the last day of the month following the end of the tax period (e.g., Q1 January–March must be filed by 30 April). Late filing triggers penalties of 5–25% of the unpaid tax plus monthly fines.
Can I claim back input VAT?
Yes — VAT-registered businesses can claim back input VAT on business purchases (goods and services used in taxable supplies). The VAT return nets output VAT (collected from customers) against input VAT (paid to suppliers). If input VAT exceeds output VAT, you can claim a refund. Some input VAT is blocked (e.g., VAT on entertainment, personal expenses, or non-business purchases). Keep proper tax invoices for all claims.
Why does the calculator show VAT as 13.04% of the gross amount, not 15%?
Because 15% of the net amount is not 15% of the gross amount. On a SAR 1,000 net + 15% VAT = SAR 1,150 gross, the VAT is SAR 150. As a percentage of the gross, that is 150 ÷ 1,150 = 13.04%. This is mathematically correct and is why you must divide by 1.15 (not subtract 15%) when removing VAT from a gross amount. The 13.04% figure is only useful for understanding the VAT share of the gross; for calculation, always use the 15% rate on the net.