Saudi Arabia VAT 15%: Complete Guide
Saudi Arabia VAT rate is 15%, which was increased from 5% in July 2020. This comprehensive guide covers everything businesses need to know about VAT in Saudi Arabia.
What is Saudi Arabia VAT?
Value Added Tax (VAT) is a consumption tax applied to goods and services in Saudi Arabia. The standard VAT rate is 15%, managed by ZATCA (Zakat, Tax and Customs Authority).
Saudi Arabia VAT Rate History
- January 2018: VAT introduced at 5%
- July 2020: VAT increased to 15%
- Current: 15% standard rate
VAT Registration Requirements
Businesses must register for VAT if:
- Mandatory: Annual revenue exceeds SAR 375,000
- Voluntary: Annual revenue exceeds SAR 187,500
How to Calculate Saudi Arabia VAT 15%
Formula: Price × 0.15 = VAT Amount
Example: SAR 1,000 × 0.15 = SAR 150 VAT
Total: SAR 1,000 + SAR 150 = SAR 1,150
VAT Categories in Saudi Arabia
- Standard Rate (15%): Most goods and services
- Zero Rate (0%): Exports, international transport
- Exempt: Financial services, residential rent, healthcare
VAT Return Filing
- Monthly: For businesses with revenue > SAR 40 million
- Quarterly: For other businesses
- Deadline: End of month following the tax period
FatooraPlus: Your VAT Compliance Solution
FatooraPlus automatically handles VAT calculation and compliance:
- ✅ Automatic 15% VAT calculation
- ✅ ZATCA-compliant invoices
- ✅ VAT reporting tools
- ✅ Arabic and English support