What's the current VAT rate in Saudi Arabia?
15% since July 1, 2020, up from 5% when the tax was first applied in January 2018. The decision to raise the rate was issued by the Council of Ministers under resolution No. 41 of 1441H.
How do I calculate tax on an amount that doesn't include it?
Multiply the amount by the tax rate (e.g. 15% = 0.15) to get the tax value, then add it to the original amount to get the tax-inclusive price. Choose "add tax" mode in the calculator to do this automatically.
How do I extract the tax from a tax-inclusive price?
Don't multiply the inclusive price by the tax rate directly — this is a common mistake. Instead, divide the inclusive price by (1 + tax rate), e.g. price ÷ 1.15 for a 15% tax, to get the original price before tax.
What goods and services are exempt from VAT?
Exemptions include financial and financing services, and residential real estate leasing. "Zero-rated" (0%) goods include exports outside the GCC countries, qualifying health and education services, certain specific medicines and medical devices, and the supply of investment gold, silver, and platinum under certain conditions.
Is the VAT rate unified across Gulf countries?
No. Although all GCC countries signed the unified agreement, each country set its actual rate independently — see the comparison table at the bottom of this page.
Does the price displayed in Saudi stores include tax?
Yes, per ZATCA regulations, the price displayed to the end consumer must include VAT, and it may not be added separately at checkout as an undisclosed extra amount.
