VAT formulas
| Calculation | Formula (15%) |
|---|---|
| VAT on a price | price × 0.15 |
| Price including VAT | price × 1.15 |
| Price before VAT from a total | total ÷ 1.15 |
| VAT inside a total | total × 15 ÷ 115 |
Common mistake: taking 15% of a VAT-inclusive total. The VAT inside SAR 1,150 is SAR 150, not SAR 172.50.
FAQ
What is the VAT rate in Saudi Arabia?
15% since 1 July 2020, administered by the Zakat, Tax and Customs Authority (ZATCA).
When must a business register for VAT?
Registration is mandatory in Saudi Arabia when taxable revenue exceeds SAR 375,000 a year, and optional above SAR 187,500.