Saudi Arabia VAT Calculator - Calculate 15% Value Added Tax

Calculate VAT instantly - Add or remove Value Added Tax from any amount easily and accurately

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SAR
Amount Before VAT
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VAT Amount
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Total with VAT
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Calculation:
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What is Value Added Tax (VAT)?

Value Added Tax (VAT) is an indirect tax imposed on most goods and services bought and sold by businesses, with some exceptions. Saudi Arabia implemented VAT on January 1, 2018 at a rate of 5%, which was then increased to 15% effective July 1, 2020. VAT is regulated by the Zakat, Tax, and Customs Authority (ZATCA).

How to Calculate VAT in Saudi Arabia

1. Adding VAT to an Amount:

Total Amount = Original Amount × (1 + VAT Rate / 100)

Example: If the amount is SAR 1,000, the total with VAT = 1,000 × 1.15 = SAR 1,150 (VAT = SAR 150)

2. Extracting VAT from an Amount:

Amount Before VAT = Total Amount ÷ (1 + VAT Rate / 100)

Example: If the total is SAR 1,150, the amount before VAT = 1,150 ÷ 1.15 = SAR 1,000 (VAT = SAR 150)

Saudi Arabia VAT Key Facts

  • Current VAT Rate: 15% (since July 1, 2020)
  • Regulatory Authority: ZATCA (Zakat, Tax and Customs Authority)
  • Registration Threshold: SAR 375,000 annual revenue (mandatory)
  • Voluntary Registration: SAR 187,500 annual revenue
  • VAT Return Filing: Monthly (revenue > SAR 40M) or Quarterly
  • Zero-rated Items: Exports, international transportation, medicines & medical equipment
  • Exempt Items: Financial services, life insurance, residential property rental

Frequently Asked Questions about VAT

The current VAT rate in Saudi Arabia is 15%, effective since July 1, 2020. It applies to most goods and services, with some exceptions for exempt and zero-rated supplies.

VAT-exempt items include: financial services, life insurance, residential property rental, certain healthcare and education services. Zero-rated items include: exports outside GCC, international transportation, and qualifying medicines and medical equipment.

Businesses registered for VAT are responsible for collecting tax from customers and remitting it to ZATCA (Zakat, Tax and Customs Authority). Registration is mandatory if annual revenue exceeds SAR 375,000 and voluntary if it exceeds SAR 187,500.

To calculate VAT from a total invoice: divide the total by 1.15 to get the pre-VAT amount, then subtract to find the VAT. Example: SAR 1,150 ÷ 1.15 = SAR 1,000 (base), VAT = SAR 150. Or simply use our calculator above and click "Remove VAT".

To remove VAT from any VAT-inclusive amount, enter the amount in the calculator above and click "Remove VAT". You'll instantly see the base amount and the VAT portion. Formula: Amount before VAT = Total Amount ÷ 1.15

Daqiq automatically calculates VAT on all invoices, generates ZATCA-compliant e-invoices, and provides comprehensive tax reports to help you file VAT returns easily. It supports both Phase 1 and Phase 2 of Saudi e-invoicing requirements. Try Daqiq for Free