Saudi VAT formulas
- Adding VAT: total = net × 1.15
- Removing VAT: net = total ÷ 1.15; VAT = total × 15 ÷ 115
VAT rates across the GCC
| Country | Standard VAT rate | Introduced |
|---|---|---|
| Saudi Arabia | 15% | 2018 (5%), 15% from July 2020 |
| United Arab Emirates | 5% | January 2018 |
| Bahrain | 10% | 2019 (5%), 10% from January 2022 |
| Oman | 5% | April 2021 |
| Qatar | No VAT | – |
| Kuwait | No VAT | – |
Zero-rated and exempt supplies
Exports, international transport, qualifying medicines and medical equipment, and investment gold are among supplies zero-rated in Saudi Arabia. Residential rent and certain financial services are exempt. Exempt supplies do not allow input VAT recovery, while zero-rated ones do.
For UAE prices, use the UAE VAT calculator (5%).
General information only; ZATCA’s published guidance is the official source.
Frequently asked questions
What is the VAT rate in Saudi Arabia?
The standard VAT rate in Saudi Arabia is 15%, increased from 5% on 1 July 2020.
How do I remove 15% VAT from a price?
Divide the VAT-inclusive price by 1.15. For example, SAR 1,150 ÷ 1.15 = SAR 1,000 net, so the VAT is SAR 150.
What is the VAT registration threshold in Saudi Arabia?
Registration with ZATCA is mandatory when annual taxable supplies exceed SAR 375,000, and voluntary above SAR 187,500.
Do Saudi invoices need to be electronic?
Yes. ZATCA’s e-invoicing (FATOORA) rules require VAT-registered businesses to issue electronic invoices, rolled out in phases with QR codes on simplified invoices.
Last reviewed: October 2026