What is the VAT rate in Saudi Arabia?

Saudi Arabia applies a flat 15% standard VAT rate. The rate was 5% from 2018 until it was tripled to 15% on 1 July 2020. There are no reduced rates; some supplies are zero-rated or exempt.

How do I add 15% VAT to a price?

Multiply the net (exclusive) amount by 1.15. The VAT itself equals the net multiplied by 0.15. For example, SAR 100 net becomes SAR 115 gross with SAR 15 VAT.

How do I extract VAT from a VAT-inclusive price?

Divide the gross by 1.15 to find the net, then subtract to get the VAT. A SAR 115 inclusive price contains SAR 15 of VAT on a SAR 100 net.

When did Saudi VAT change to 15%?

The standard rate rose from 5% to 15% on 1 July 2020 as part of fiscal measures during the pandemic. The 15% rate has remained in place since.

Does this tool send my figures anywhere?

No. All calculations run locally in your browser using JavaScript. No data is transmitted.

What is the Saudi Arabia VAT Calculator (15%)?

Free Saudi Arabia VAT calculator at the 15% standard rate (raised from 5% in July 2020). Add VAT to a net price by multiplying by 1.15, or extract VAT from a VAT-inclusive total by dividing by 1.15. Runs entirely in your browser. It runs free in your browser on Gera Tools, with nothing uploaded.

Saudi Arabia VAT Calculator (15%)

Name: Saudi Arabia VAT Calculator (15%)
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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Saudi Arabia applies a flat 15% VAT rate, raised from the original 5% on 1 July 2020. This calculator handles both directions of the standard calculation — adding VAT to a net price and extracting it from a VAT-inclusive total — and gives a clean net / VAT / gross breakdown for invoicing, quoting, or reconciling supplier bills.

How it works

The 15% rate gives a multiplier of 1.15. The two directions use different arithmetic:

Add VAT (net to gross): multiply the net price by 1.15. The VAT amount is net × 0.15.
Extract VAT (gross to net): divide the inclusive price by 1.15 to recover the net. VAT = gross − net.

A useful identity: in any 15% VAT-inclusive price, the embedded VAT is exactly 3/23 of the gross, or about 13.043%. So if a price tag says SAR 230, the VAT inside is not 15% of 230 — it is 13.043% of 230, which is SAR 30.

Worked examples

Adding VAT to a quote: A contractor quotes SAR 5,000 net for a fit-out job. The VAT-inclusive invoice amount is 5,000 × 1.15 = SAR 5,750, with SAR 750 VAT.

Extracting VAT from a receipt: A hotel bill shows SAR 1,725 all-in. To find the net room charge: 1,725 ÷ 1.15 = SAR 1,500 net, with SAR 225 VAT included.

Checking a supplier invoice: A supplier invoices SAR 3,450 and claims SAR 450 VAT. Verify: 3,000 × 0.15 = 450 — correct. Net is 3,450 ÷ 1.15 = SAR 3,000. If the VAT line does not match the net × 0.15 figure, the invoice has a rounding or calculation error.

What the 15% rate covers

The standard 15% rate applies to most commercial supplies of goods and services made by VAT-registered businesses in Saudi Arabia. Some categories are treated differently:

Zero-rated (0%): exports of goods, international passenger transport, and specific medicines and medical equipment.
Exempt: certain financial services, residential property sales, and life insurance.

Zero-rated and exempt supplies should not be run through a 15% calculator. If you are dealing with mixed supplies — part standard, part exempt — calculate the taxable and exempt portions separately.

Practical notes for invoicing

Saudi VAT regulations require that a valid tax invoice show the net amount, the VAT amount, and the gross total separately. This calculator gives you all three in one step. Round VAT to two decimal places (halalat) as required. For recurring transactions with a fixed price, recalculating the VAT split each time avoids small accumulated rounding errors that can cause invoice discrepancies at month end.