Tax Calculator: VAT Calculator Saudi Arabia

🌐 اللغة: 🇸🇦 العربية

Welcome to the VAT calculator for Saudi Arabia! Whether you’re a business owner or planning to cover your personal expenses and are unsure about calculating VAT, don’t worry – we’ve got you covered. This calculator will help you add or remove VAT from your total with a single click.

Saudi Arabia VAT Calculator

VAT Calculator for Saudi Arabia

What is Value Added Tax (VAT)?

Value Added Tax (VAT) is an indirect tax on the consumption of goods and services in Saudi Arabia. It was first introduced in the Kingdom on January 1, 2018, at a rate of 5%. Later, the government increased the VAT rate to 15%, effective July 1, 2020. This increase was implemented to address the financial disruptions caused by the COVID-19 pandemic. Further detailed information on VAT rules and regulations can be found on the website of the Zakat, Tax and Customs Authority ZATCA.

How do I calculate the tax using a calculator?

Calculating Value Added Tax (VAT) using a VAT calculator is incredibly easy! There are two ways to calculate VAT: 1. Add VAT to the price 2. Remove VAT from the total amount. If you want to add VAT to a net amount, enter the price in the “Enter Amount” field and the 15% tax rate in the “VAT Rate” field, then click the “Add VAT” button. Similarly, to extract the tax amount from the total amount, follow the same steps and click the red button to remove VAT from the total amount.

  • Enter the amount
  • Enter the VAT rate (15%)
  • Click to add or subtract VAT

Benefits of the VAT calculator Saudi Arabia

  • Fast and accurate calculations
  • Save time: Perform instant calculations in just a few clicks
  • Simple and easy-to-use interface
  • Reliable data sources ensure accurate results
  • Works as both a VAT remover and adder
  • Any non-fixed VAT amount is added to only 15%
  • No cost

VAT Calculation Formula

The Saudi VAT calculator uses two different methods to calculate the tax amount. The first is adding the tax to the price, and the second is extracting or removing the tax from the price. Let’s explain each one with examples:

Add tax to the price

This method adds a 15% tax to the price, excluding VAT. To calculate VAT manually, use the following formulas:

  • VAT Amount = Original Price ✕ VAT Rate / 100
  • Total Value Including VAT = Original Price + VAT Amount

How do you add VAT to a price? Let’s explain with an example. Ahmed imports shoes for his VAT-registered company located in Riyadh. The total price of the shoes he imports is SAR 50,000 excluding VAT. Now, to calculate the VAT he needs to pay to Saudi Arabia, apply the formula above:

Cost of shoes = 50,000 Saudi Riyals, VAT rate = 15%

VAT amount = 50,000 Saudi Riyals ✕ 15/100

VAT amount = 7500

The total price including VAT will be:
Inclusive Value of VAT = Original Price + VAT Amount
Inclusive Value of VAT = SAR 50,000 + SAR 7,500 = SAR 57,500

To perform accurate VAT calculations without any errors, use our advanced VAT calculator.

Remove/extract VAT from the price

This method is used when the price includes VAT. The following formulas are used to calculate the tax amount from the price:

  • VAT Amount = Original Price ✕ VAT Rate / (100 + VAT Rate)
  • Exclusive Value of VAT = Original Price ✕ 100 / (100 + VAT Rate)

Let’s illustrate this with an example of removing tax from the total amount. For instance, if you want to remove VAT from 2000 Saudi Riyals, apply the formulas mentioned above:

Original price = 2000 Saudi Riyals, VAT amount = 15%

VAT amount = SAR 2000 ✕ 15 / (100 + 15)
VAT amount = SAR 260.86
Now to find the value excluding VAT:
Non-exclusive value of VAT = SAR 2000 ✕ 100 / (100 + 15) = SAR 1739

To deduct the tax amount from the total amount if there is any calculation error, use the advanced VAT calculator.

Who must register for VAT in Saudi Arabia?

In Saudi Arabia, businesses and individuals are required to register for Value Added Tax (VAT) if their annual supply value exceeds SAR 375,000. Businesses with taxable sales exceeding SAR 187,500 but less than SAR 375,000 must register voluntarily for VAT. Furthermore, businesses that anticipate their annual supply value to exceed SAR 375,000 within the next twelve months must also register for VAT.

What products and services are exempt from value-added tax (VAT) in Saudi Arabia?

These goods and services fall entirely outside the scope of VAT. They are not subject to any VAT charges whatsoever.

  • Residential property rentals
  • Public healthcare services
  • Public education

What products and services are subject to zero percent tax in Saudi Arabia?

The zero percent means that these goods and services technically fall under the VAT system, but the VAT applied is 0%.

  • International Transportation
  • Transportation services for goods or passengers outside the Kingdom
  • Supply of a qualified international means of transport (vehicle, ship, aircraft) with specific requirements
  • Supply of spare parts, consumables, and maintenance and repair services for qualified means of transport
  • List of medicines and medical equipment issued by the Saudi Ministry of Health and the Saudi Food and Drug Authority

In conclusion, this VAT calculator for Saudi Arabia is the most advanced and error-free. Whether you are a business owner, a consumer planning your personal expenses, or an importer/exporter, it is free to use. It can function as both a VAT remover and VAT adder, providing instant results and saving you valuable time. It is guaranteed to comply with the Saudi tax system and is regularly reviewed by financial experts. If you have any questions or suggestions regarding the use of our calculator, or if you encounter any problems, please do not hesitate to contact us.