What is the standard VAT rate in Saudi Arabia?

The statutory standard VAT rate in the Kingdom of Saudi Arabia is 15%, established under Royal Order No. A/638 and overseen by the Zakat, Tax and Customs Authority (ZATCA).

How do you calculate 15% VAT in Saudi Arabia?

To add 15% VAT, multiply the net amount by 1.15. To remove 15% VAT from a gross inclusive price, divide the gross amount by 1.15.

What is ZATCA Fatoora Phase 2?

Phase 2 (Integration Phase) mandates that businesses integrate their accounting ERP software directly with ZATCA's platform via APIs, issuing tamper-proof cryptographic XML/PDF/A-3 invoices with embedded QR codes.

Saudi Arabia 15% VAT Calculator: ZATCA Fatoora & Tax Rules (2026)

The Kingdom of Saudi Arabia (KSA) enforces a standard 15% VAT rate, supervised by the Zakat, Tax and Customs Authority (ZATCA). Following the implementation of Fatoora Phase 2 (electronic invoicing integration), all commercial transactions must comply with strict mathematical accuracy and automated reporting.

Whether quoting commercial contracts in Saudi Riyals (SAR) or checking e-invoice calculations, our online VAT calculator provides instant, zero-latency figures compliant with ZATCA rounding rules.

ZATCA VAT Classification

Tier	Rate	Eligible Transactions
Standard Rate	15.0%	Commercial retail, motor vehicles, construction, technology equipment, dining, legal, consulting, logistics.
Zero Rate (0%)	0.0%	Exports of goods and services outside the GCC (for UAE cross-border commerce, compare our UAE 5% VAT Guide), qualifying medical equipment, international transport of goods and passengers.
Exempt Supplies	Exempt	Residential real estate leases, margin-based financial services, life insurance.

How to Calculate 15% Saudi VAT

1. Adding 15% VAT (Net to Gross)

To invoice a Saudi business or client starting from a pre-tax amount:

Add 15% Formula

Gross = Net × 1.15 | 15% VAT = Net × 0.15

Example: An IT infrastructure proposal for SAR 50,000.00 Net:
• 15% VAT: SAR 50,000.00 × 0.15 = SAR 7,500.00
• Gross Total Payable: SAR 50,000.00 + SAR 7,500.00 = SAR 57,500.00

2. Extracting 15% VAT (Gross to Net / Reverse Calculation)

When auditing consumer receipts or invoices where only the gross total is printed:

Remove 15% Formula

Net = Gross ÷ 1.15 | 15% VAT = Gross - Net

Example: A retail receipt totaling SAR 345.00 Gross:
• Pre-Tax Net Base: SAR 345.00 ÷ 1.15 = SAR 300.00
• Extracted VAT: SAR 345.00 - SAR 300.00 = SAR 45.00

ZATCA Fatoora Phase 2 E-Invoicing Rules

Under ZATCA's Fatoora framework, taxable businesses issuing B2B invoices must clear each invoice with ZATCA in real time before sending it to the buyer. Simplified B2C invoices must be reported within 24 hours of issuance.

Every valid electronic invoice must contain a standardized cryptographic stamp. If managing invoices on smartphone devices, explore our VAT Calculator Mobile Tools Guide., universal unique identifier (UUID), and a cryptographic QR code encoding the seller name, VAT number, timestamp, invoice total, and VAT total.

Frequently Asked Questions About Saudi VAT

What is the mandatory VAT registration threshold in Saudi Arabia?

Businesses with annual taxable turnover exceeding SAR 375,000 are mandatorily required to register with ZATCA. Voluntary registration is available for revenues between SAR 187,500 and SAR 375,000.

How does Saudi Arabia treat real estate transactions?

Commercial real estate is subject to 15% VAT. Residential real estate sales are exempt from VAT but subject to a 5% Real Estate Transaction Tax (RETT).