Saudi Arabia VAT (ضريبة القيمة المضافة) Guide & Calculator
Calculate VAT in the Kingdom of Saudi Arabia with our simple tool. The Arabic name for VAT is ضريبة القيمة المضافة. This calculator helps you determine gross or net amounts for the Saudi VAT rates.
Current VAT Rates in Saudi Arabia
Saudi Arabia applies a straightforward VAT system:
- Standard Rate (15%): This is the default rate and applies to most goods and services in the Kingdom.
- Zero Rate (0%): The 0% rate applies to specific goods and services, including exports of goods to outside the GCC territory, international transport, and certain medicines and medical goods.
Some sectors, like certain financial services and residential real estate rentals, are exempt from VAT.
History of VAT in Saudi Arabia
Value Added Tax is a relatively new concept in Saudi Arabia, introduced on January 1, 2018, as part of the Kingdom's Vision 2030 plan to diversify the economy away from oil dependency. The initial standard rate was 5%. In response to economic pressures, the government made a significant change in 2020, tripling the rate to its current level.
| Period | Standard Rate |
|---|---|
| From 01/07/2020 | 15% |
| From 01/01/2018 | 5% |