GenzeeSaudi Arabia VAT Calculator 15%
Enter a net or gross amount in Saudi Riyal — instantly see VAT, net price, and total. Works with invoices, pricing, tax compliance and financial reporting.
Breakdown
How Saudi Arabia VAT works
Saudi Arabia applies a 15% Value-Added Tax (VAT) on most goods and services, effective 1 July 2020. The rate was previously 5% (since 1 January 2018) but was increased as part of the government's fiscal reform program to support Saudi Vision 2030 economic development. VAT is administered by the ZAKAT and Tax Authority (ZTA), which oversees both VAT and the Islamic tax of Zakat.
The 2020 VAT increase
On 1 July 2020, Saudi Arabia's VAT rate jumped from 5% to 15% in a single step. This affected all new transactions from that date onwards. Goods and services invoiced before 1 July 2020 were still subject to 5% VAT; from 1 July onwards, 15% applies. The increase was implemented to increase government revenues during a period of lower oil prices and to align with Vision 2030 economic objectives.
Who pays VAT?
Like all VAT systems, Saudi Arabia's VAT is a consumption tax borne by the end consumer. Businesses charge VAT on their sales and can claim back input VAT from purchases, reducing their net liability to the amount of VAT they've collected minus input VAT paid. All businesses and individuals making taxable supplies with total turnover above SAR 375,000 in any 12-month period must register for VAT. Registration below this threshold is voluntary.
Exemptions and zero-rate supplies
Some supplies are completely exempt from VAT (no VAT charged, no input VAT recovery):
- Basic food items (bread, rice, dairy, eggs, fruits, vegetables)
- Medicines and healthcare services
- Education services (schools, universities, training)
- Certain financial services (banking, insurance)
- Residential real estate (some sales and rentals)
- Some government services
Saudi Arabia does not have zero-rated supplies in the traditional sense (i.e. supplies charged at 0% but input VAT is recoverable). Exempted supplies simply fall outside the VAT scope entirely. For your specific transaction, always check with the ZAKAT and Tax Authority (ZTA) at zta.gov.sa.
Worked example
On a net price of SAR 1,000: VAT = 1,000 × 15% = SAR 150. Invoice total = SAR 1,150.
Reversing from a gross invoice of SAR 1,150: Net = 1,150 ÷ 1.15 = SAR 1,000. VAT = SAR 150.
VAT compliance and filing
VAT-registered businesses must file periodic VAT returns (monthly or quarterly depending on registration status) with the ZTA. Returns show total output VAT collected from customers, minus input VAT paid on purchases, resulting in a net payment or refund to the government. Invoicing rules, record-keeping, and audit requirements are strictly defined. Electronic invoicing (E-invoicing / Fatoora) is also required for most transactions.
Frequently asked questions
What is the current Saudi Arabia VAT rate?
15% — the standard rate since 1 July 2020. The rate was previously 5% (from 1 January 2018) but was increased to 15% as part of the Saudi Vision 2030 fiscal consolidation.
When did Saudi Arabia increase VAT to 15%?
1 July 2020. The increase was announced as part of the government's fiscal reform program to support economic development. All businesses applying VAT must now use the 15% rate for new transactions from this date onwards.
Are there reduced or zero VAT rates in Saudi Arabia?
No. Saudi Arabia applies a flat 15% standard rate to all VATable supplies. Some items like food, medicine and education are completely exempted from VAT (not charged, no input recovery), but there are no reduced rates.
How is VAT registered calculated for partial months?
Transitional provisions applied when the rate changed from 5% to 15% on 1 July 2020. Supplies delivered before 1 July were charged at 5%; from 1 July onwards at 15%. For mixed fiscal periods, apply the rate in effect on the invoice date. The ZAKAT and Tax Authority (ZTA) provides detailed guidance.
Is this calculator verified?
Yes, against the ZAKAT and Tax Authority (previously General Authority of Zakat and Tax) rates and guidance. The 15% rate is accurate for all standard VATable supplies.
Are there any exemptions?
Yes. Common exemptions include: basic food items, medicines and healthcare, education services, certain financial services, residential real estate, and some government services. Exempted supplies do not attract VAT, and input VAT cannot be recovered. Check ZTA.gov.sa for your specific transaction.