2026-03-25·
5 min
How to Calculate VAT in Saudi Arabia 2026 — Practical Examples
VAT
Tax Calculation
Saudi Arabia
15% VAT has been part of every business transaction in Saudi Arabia since 2020. Understanding how to calculate it correctly saves you costly errors in invoicing and tax returns.
Basic Formulas
Price Excluding VAT
Total Price = Price × 1.15
VAT Amount = Price × 0.15
Example: SAR 100 → Total SAR 115 (VAT SAR 15)
VAT Amount = Price × 0.15
Example: SAR 100 → Total SAR 115 (VAT SAR 15)
Price Including VAT
VAT Amount = Inclusive Price ÷ 1.15 × 0.15
Price ex-VAT = Inclusive Price ÷ 1.15
Example: SAR 115 → VAT SAR 15 (Price SAR 100)
Price ex-VAT = Inclusive Price ÷ 1.15
Example: SAR 115 → VAT SAR 15 (Price SAR 100)
Special VAT Rates
| Type | Rate | Examples |
|---|---|---|
| Standard | 15% | Most commercial goods and services |
| Zero-rated | 0% | Some basic foodstuffs, medicines, education, healthcare |
| Out of scope | — | Salaries, social insurance |
How POS SAAS Handles VAT
POS SAAS automatically calculates VAT for each item, shows it separately on invoices, and generates a monthly tax report ready for ZATCA filing — no manual calculation needed.