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VAT in Saudi Arabia

  • Standard rate: 15% since 1 July 2020 (it was 5% from 2018).
  • Businesses must register above SAR 375,000 a year in taxable sales.
  • Prices shown to customers must include VAT.
  • Some items are zero-rated or exempt, for example exports and certain financial services.

Worked example

SAR 1,000 before VATVAT 15%: SAR 150.00 · Total: SAR 1,150.00Going back: SAR 1,150.00 ÷ 1.15 = SAR 1,000.00 before VAT

Questions people ask

What is the VAT rate in Saudi Arabia?

15%, collected by ZATCA.

How do I remove 15% VAT from a total?

Divide the total by 1.15. The difference is the VAT.

What is the VAT registration threshold in Saudi Arabia?

SAR 375,000 a year in taxable supplies.

GCC VAT rates

CountryVAT rateSinceRegistration threshold
Saudi Arabia15%1 July 2020SAR 375,000
UAE5%1 January 2018AED 375,000
QatarNo VATNot introduced–
KuwaitNo VATNot introduced–
Bahrain10%1 January 2022BHD 37,500
Oman5%16 April 2021OMR 38,500

Official sources