How to Calculate Saudi VAT (15%) on Invoices and Prices

Saudi Arabia's Value Added Tax (VAT) at 15% applies to most goods and services. Whether you're preparing invoices, pricing products, or checking receipts, knowing how to calculate VAT correctly is essential for any business operating in the Kingdom.

VAT Formulas

• Add VAT: Price × 1.15 = VAT-inclusive price
• Remove VAT: VAT-inclusive price ÷ 1.15 = Price before VAT
• VAT amount only: Price × 0.15 = VAT amount
• Extract VAT from inclusive price: Inclusive price − (Inclusive price ÷ 1.15) = VAT amount

Step-by-Step: Calculate VAT

1. Open the tool — Go to our Saudi VAT Calculator.
2. Enter the amount — Type your price in SAR.
3. Choose direction — Select "Add VAT" or "Remove VAT" depending on whether your input is before or after tax.
4. See results — The calculator instantly shows the price before VAT, VAT amount, and total inclusive price.

Common Scenarios

• Pricing a product at ﷼100 before VAT — The customer pays ﷼115 (﷼100 + ﷼15 VAT).
• A receipt shows ﷼575 total — The price before VAT is ﷼500, and ﷼75 is tax.
• Freelancer billing ﷼5,000 for a project — If VAT-registered, invoice ﷼5,750 (﷼5,000 + ﷼750 VAT).

Who Needs to Register for VAT?

Businesses with annual revenue exceeding ﷼375,000 must register for VAT. Voluntary registration is available for businesses with revenue above ﷼187,500.

Calculate your VAT instantly with our free Saudi VAT Calculator — private and accurate.