15% since when?
The Zakat, Tax and Customs Authority (ZATCA) raised the VAT rate from 5% to 15% effective July 1, 2020. This calculator defaults to 15%, but the field is manually adjustable to any other rate (such as a zero rate for exempt goods, or a different Gulf country's rate).
"Add VAT" assumes the entered amount is the net price before tax. "Extract VAT" assumes the entered amount already includes tax, and calculates the net price by dividing it by (1 + the rate).
FAQ
How do I know if a displayed price already includes VAT?
In Saudi Arabia, retail consumer prices (restaurants, shops) must legally be VAT-inclusive. Business-to-business invoices are sometimes shown before VAT, so check the invoice itself.
Is every good and service taxed at the same rate?
No, some goods are exempt or zero-rated (like certain financial services and exports). Adjust the VAT rate field manually here to match your case.
Source
Zakat, Tax and Customs Authority (ZATCA) — Royal Decree No. 41 of 1441H raising VAT to 15%.
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Last updated: July 2026
This calculator is a general computational tool, not official tax advice. Read the full disclaimer.