How to use this calculator
- Enter the amount in SAR.
- Choose whether the amount already includes VAT or not.
- Click Calculate and use the breakdown: net amount, VAT amount and gross amount.
Formula — how it is calculated
Saudi Arabia introduced VAT on 1 January 2018 at 5% and raised the standard rate to 15% from 1 July 2020. The tax is governed by the VAT Law and its Implementing Regulation and administered by ZATCA. Exports and international services are generally zero-rated, and some sectors — such as certain financial services and residential rents — are exempt. For everyday pricing, invoicing and expense checks, 15% is the rate that matters.
Adding VAT: VAT = net amount × 0.15, and the total is net × 1.15. Removing VAT: the net amount is the gross amount ÷ 1.15, and the VAT inside a gross price is gross − net. For example, at 15% the VAT inside a gross price is 13.04% of that price — not 15% of it — which is why subtracting 15% directly always gives the wrong answer.
Worked example
A Riyadh supplier sells equipment for SAR 2,000 before tax. VAT at 15% is 2,000 × 0.15 = SAR 300, making the invoice total SAR 2,300. In reverse: a purchase receipt of SAR 2,300 including VAT contains 2,300 ÷ 1.15 = SAR 2,000 of goods and SAR 300 of tax. The VAT inside a Saudi gross price is about 13.04% of that price — so subtracting 15% (SAR 345) would overstate the tax by SAR 45.
Frequently asked questions
What is the VAT rate in Saudi Arabia?
The standard rate of VAT in Saudi Arabia is 15%. Some supplies are zero-rated or exempt — exports and certain sectors, for example — but 15% is the rate that applies to most goods and services.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.15. The result is the net amount; the difference between the two figures is the VAT. Never subtract 15% of the gross price — that overstates the tax.
How do I show VAT on an invoice?
Show the net amount, the VAT rate and VAT amount, and the total payable as separate lines — exactly the three figures this calculator gives you. Registered businesses must issue tax invoices that meet the tax authority's format rules.
Who must register for VAT in Saudi Arabia?
Businesses in Saudi Arabia must register when their taxable supplies exceed SAR 375,000 in a year; voluntary registration starts at SAR 187,500. VAT is administered by the Zakat, Tax and Customs Authority (ZATCA), and registered businesses must issue electronic invoices (FATOORA) in the prescribed phases.
Does this calculator store my figures?
No. The calculation runs entirely in your browser. Nothing you enter is sent to or kept on a server.