Tax & Compliance

How Much Is VAT in Saudi Arabia? (2026 Quick Answer)

The VAT rate in Saudi Arabia is 15%. Learn when it applies, what is zero-rated or exempt, registration thresholds, and how to calculate VAT correctly.

Qeemah Team • Published: • 6 min read

If you only need the direct answer:

  • VAT in Saudi Arabia is 15%.

That is the standard rate used for most taxable supplies in the Kingdom.

Quick examples

  • If your price is SAR 100 excluding VAT:
    • VAT = 100 × 15% = SAR 15
    • Total = SAR 115
  • If your price is SAR 115 including VAT:
    • Net = 115 ÷ 1.15 = SAR 100
    • VAT = SAR 15

Use the KSA VAT calculator for instant results and invoice-ready numbers.

Was Saudi VAT always 15%?

No.

  • VAT started at 5% in January 2018.
  • It increased to 15% in July 2020.

Many online examples still use 5%, which is one reason businesses make pricing and filing mistakes.

Does 15% apply to everything?

Not always. Saudi VAT has three broad outcomes:

  1. Standard-rated (15%): most goods and services.
  2. Zero-rated (0%): VAT is charged at 0%, but input tax may still be recoverable.
  3. Exempt: no VAT is charged, and related input tax is usually not recoverable.

Always classify the supply before calculating tax.

Registration thresholds in Saudi Arabia

  • Mandatory registration: annual taxable supplies above SAR 375,000.
  • Voluntary registration: annual taxable supplies above SAR 187,500.

If you are close to the threshold, monitor monthly turnover so you register on time and avoid penalties.

Why this matters for ZATCA e-invoicing

Under ZATCA e-invoicing, VAT totals in your invoice XML and QR data must match correctly. Even small calculation or rounding errors can create rejection or compliance noise in Phase 2 workflows.

For practical execution:


This article is general information and not legal or tax advice. For case-specific treatment, refer to official ZATCA guidance and your tax advisor.

Works Cited & Technical References

  1. Zakat, Tax and Customs Authority (ZATCA), VAT in Saudi Arabia, zatca.gov.sa.
  2. VAT Law and Implementing Regulations, Kingdom of Saudi Arabia.

Recommended next steps

Share this article