Need the price with or without VAT? This calculator adds VAT to a net amount or extracts it from a VAT-inclusive price. Saudi Arabia's standard 15% rate is preset, and you can switch to other Gulf rates or type any sales tax rate.
To add 15% VAT, multiply by 1.15: 100 becomes 115. To remove it from a VAT-inclusive price, divide by 1.15: 115 becomes 100, and the VAT inside it is 15. The VAT part of any inclusive price is price × 15 ÷ 115.
Enter your numbers and press Calculate.
For information only. Results are estimates based on the numbers you enter and are not financial, legal or tax advice.
How to use the VAT calculator
- Enter the amount.
- Choose Add VAT if the amount is before VAT, or Remove VAT if the price already includes it.
- Keep the Saudi 15% preset or pick another rate; choose Custom to type any rate.
- Press Calculate.
The formula
A common mistake is to remove VAT by taking 15% off the gross price. That gives the wrong answer, because the 15% was charged on the net price, not on the gross one.
Worked example
A laptop costs 3,450 SAR including VAT. Net = 3,450 ÷ 1.15 = 3,000 SAR, and the VAT is 450 SAR. Taking 15% off 3,450 would wrongly give 2,932.50.
Saudi VAT in practice: what the 15% applies to
Value added tax in Saudi Arabia started on 1 January 2018 at 5%. A Royal Order raised the standard rate to 15%, and the new rate applied to taxable supplies from 1 July 2020, as the Zakat, Tax and Customs Authority (ZATCA) announced at the time. Most goods and services you buy in the Kingdom (groceries, electronics, restaurant meals, phone bills, car repairs, hotel stays) carry the full 15%. The calculator above uses that rate by default, so for a normal shopping receipt you only need to type the amount and choose whether it already includes VAT.
Not every supply is taxed at 15%. The VAT Implementing Regulations published by ZATCA list two other treatments, and they work differently:
- Zero-rated (0%): the supply is taxable, but at a rate of zero. This covers, among others, exports of goods outside the GCC, international transport of goods and passengers, qualifying medicines and medical equipment, and the first supply of investment gold, silver or platinum of 99% purity or more. The seller still issues a tax invoice and can usually recover the VAT it paid on its own costs.
- Exempt: no VAT is charged and the seller cannot recover input VAT on related costs. Residential rent and most margin-based financial services (such as interest-bearing loans) fall here.
Property sales are a special case. Since 4 October 2020 the sale of real estate has been exempt from VAT and is instead subject to a separate 5% Real Estate Transaction Tax (RETT). If you are pricing a flat or a plot of land, do not run the 15% calculation on it; use 5% RETT instead, and check the first-home relief described in our mortgage calculator guide.
Who has to register for VAT?
For businesses, the questions are usually "do I have to charge VAT?" and "can I?" ZATCA's rules give two thresholds, measured on the value of taxable supplies over the previous 12 months or expected over the next 12 months:
- Mandatory registration when annual taxable supplies exceed SAR 375,000.
- Voluntary registration is allowed when supplies or taxable expenses exceed SAR 187,500 but stay below the mandatory threshold.
A freelancer or small shop below SAR 187,500 does not register and does not add VAT to its prices. A registered business must show VAT on its invoices and pay ZATCA the difference between the VAT it collected (output tax) and the VAT it paid to its suppliers (input tax). The calculator handles both sides: use Remove VAT on a supplier's invoice to find the input VAT you can reclaim, and Add VAT on your own net price to find what to charge.
More worked examples in SAR
1. Quoting a client
A registered design studio agrees a fee of SAR 25,000 before tax. VAT = 25,000 × 15 ÷ 100 = SAR 3,750, so the invoice total is SAR 28,750. If the studio wrongly quoted "25,000 including VAT", its real income would be only 25,000 ÷ 1.15 = SAR 21,739.13.
2. Checking a restaurant bill
A dinner bill shows SAR 230 including VAT. The VAT inside it is 230 × 15 ÷ 115 = SAR 30, and the food and service cost SAR 200. This is the quickest check that a receipt is right: the VAT line should equal 15/115 of the total, about 13.04%.
3. Comparing a price advertised abroad
A gadget costs AED 1,050 including UAE VAT of 5%. Choose the UAE 5% preset and Remove VAT: the net price is AED 1,000. You can then compare it with a Saudi price by removing 15% from the Saudi shelf price, and convert currencies separately. The calculator does not convert currencies.
4. Monthly VAT position
In one month a shop sells goods for SAR 115,000 including VAT and buys stock for SAR 69,000 including VAT. Output VAT = 115,000 × 15/115 = SAR 15,000. Input VAT = 69,000 × 15/115 = SAR 9,000. The net amount due to ZATCA for that month is SAR 6,000, before any adjustments your accountant may make.
Common mistakes to avoid
- Taking 15% off a gross price. This always understates the net price. Divide by 1.15 instead.
- Adding VAT twice. Saudi shelf prices for consumers normally already include VAT. Check whether a quote says "excluding VAT" before you add 15%.
- Applying 15% to rent or a home purchase. Residential rent is exempt and property sales use the 5% RETT.
- Rounding each line differently. On long invoices, rounding VAT per line and then on the total can create small differences of a halala or two. Follow your invoicing system's rounding rule consistently.
Related reading: if you are also working out what you owe on savings, see the zakat calculator, and for loan costs the loan EMI calculator.
FAQ
What is the VAT rate in Saudi Arabia?
The standard VAT rate in Saudi Arabia is 15%, in force since 1 July 2020 according to the Zakat, Tax and Customs Authority (ZATCA). Some supplies are zero-rated or exempt.
Why can't I just subtract 15%?
Because VAT is calculated on the net price. Removing it means dividing by 1.15, not multiplying by 0.85.
Which other Gulf countries have VAT?
The UAE and Oman charge 5% and Bahrain charges 10%. Rates can change, so check the official tax authority before relying on them.
Does this work for US sales tax?
Yes. Choose Custom rate and type your state and local rate combined.
Is VAT charged when I buy a home in Saudi Arabia?
No. Since 4 October 2020, real estate sales are exempt from VAT and are subject to a 5% Real Estate Transaction Tax instead, according to ZATCA.
When does a business have to register for VAT?
When its taxable supplies over 12 months exceed SAR 375,000. Registration is optional between SAR 187,500 and SAR 375,000, according to ZATCA.
Sources
- ZATCA: Taxes, rules and regulations (VAT)
- ZATCA: Guideline on raising the standard VAT rate to 15% (Arabic)
- ZATCA: VAT registration thresholds (SAR 375,000 / 187,500)
- ZATCA: VAT Implementing Regulations (zero-rated and exempt supplies)
- ZATCA: Simplified guide to the Real Estate Transaction Tax (5% RETT, VAT exemption, first home)
Follow WorldScope on X for live updates: @worldscope_now
More free tools: see all WorldScope calculators
Comments