How to Add and Remove 15% Saudi VAT
Saudi Arabia's standard VAT rate is 15%. Here's how to add it, extract it from a gross price, and stay ZATCA-compliant.
Saudi Arabia's 15% VAT
Saudi Arabia introduced VAT at 5% in 2018 and raised it to 15% in July 2020 — the highest standard rate in the GCC. Most goods and services are taxed at 15%, with a limited set of zero-rated and exempt categories.
Adding vs removing VAT
- Adding VAT: multiply the net price by 1.15. A SAR 1,000 item becomes SAR 1,150.
- Removing VAT (finding the net from a VAT-inclusive price): divide by 1.15. SAR 1,150 gross = SAR 1,000 net + SAR 150 VAT.
The Saudi VAT Calculator does both instantly.
ZATCA e-invoicing
Saudi VAT-registered businesses must issue compliant e-invoices through ZATCA's Fatoorah system, including a QR code on simplified invoices. You can check exactly what a ZATCA QR encodes with the free ZATCA QR Decoder.
Who must register
Businesses with annual taxable supplies above SAR 375,000 must register for VAT; those above SAR 187,500 may register voluntarily.
Calculate in seconds
Whether you're pricing a product or checking a supplier invoice, the Saudi VAT Calculator gives you net, VAT, and gross at a glance.