Enter a price before VAT in the VAT calculator above to see the 15% Saudi VAT and the VAT-inclusive total, or enter an amount that already includes VAT to find the price excluding VAT. The Invoice lines tab works out VAT line by line after each discount and adds the lines up the way a tax invoice in Saudi Arabia shows them. Under every result you get the formula worked through on your own numbers, ready to copy or download.
How to calculate 15% VAT in Saudi Arabia
VAT in Saudi Arabia is charged at 15% of the value of goods or services before tax. The VAT amount is the net price × 0.15, and the price the buyer pays is the net price × 1.15.
VAT = Net × 0.15 · Total = Net × 1.15
Excluding VAT: working back from a VAT-inclusive price
When a shelf price or an invoice total is VAT inclusive, the VAT is not 15% of that figure. An inclusive price is 115 parts: 100 for the net amount and 15 for the tax, so the VAT is 15/115 of the inclusive price, about 13.04%. Divide the inclusive price by 1.15 to get the amount excluding VAT, then subtract it from the inclusive price to see the VAT.
Net = Total ÷ 1.15 · VAT = Total − Net
Taking 15% off the inclusive amount gives a number that is too low: 15% off SAR 1,150 leaves SAR 977.50, while the real amount before VAT is SAR 1,000. Exclusive VAT means a price quoted before tax; inclusive means the tax is already inside it.
How to calculate VAT on a phone calculator
On any calculator: to add VAT, type the amount and press × 1.15 =. For the amount before VAT, type the inclusive price and press ÷ 1.15 =. For the VAT alone out of an inclusive price, multiply by 15 and divide by 115. Round the answer to two decimals before you put it on a quotation or invoice, since amounts are written in riyals and halalas.
VAT on a multi-line invoice with discounts
A discount the seller gives on the invoice comes off the price first, and VAT is charged on what is left. In the Invoice lines tab you enter the quantity, unit price and any line discount for each item, and you can add a fixed discount on the whole invoice; the calculator spreads it across the lines in proportion to their net value, then works out VAT for each line and adds it up.
If you will keep adding lines in your own spreadsheet, the Download Excel button gives you the same invoice with live formulas: one cell for the rate, and VAT on each line rounded with ROUND, so changing a quantity updates the VAT and the total.
Rounding VAT to the nearest halala
Amounts on an invoice carry two decimals, so VAT on each line is rounded to the nearest halala before the lines are added. That is why the sum of line VAT can differ from 15% of the invoice net by a halala or two; the calculator shows the difference under the result when there is one.
What matters is that the lines printed on the invoice add up to the total printed on it. A rounding difference on its own is not an error; lines that do not add up to the total are.
When a business must register for VAT
Registration is mandatory once your taxable supplies exceed SAR 375,000 a year and optional above SAR 187,500; below that a business cannot register, according to the ZATCA FAQ. A business that is not registered does not add VAT to its prices and does not issue tax invoices.
Zero-rated and exempt supplies
Not every supply carries 15%. A zero-rated supply shows VAT of zero on the invoice, goes on the return, and still lets the seller reclaim VAT on its purchases; exports of goods outside the GCC are the familiar example. An exempt supply carries no VAT at all, such as some financial services and residential rent. The exact conditions sit in the VAT law and its implementing regulations, so check them with ZATCA before treating an item as exempt. To calculate a zero-rated item here, switch on "Change the rate" and enter 0.
Common VAT calculation mistakes
- Taking 15% off an inclusive price to find the net. Divide by 1.15 instead.
- Charging VAT on the price before the discount, which overstates the tax.
- Adding 15% to a price already marked VAT inclusive, so the customer pays the tax twice.
- Rounding only the invoice total and leaving line VAT at four decimals, so the lines no longer add up.
- Issuing a tax invoice from a business that is not registered for VAT.
What to do with the result
Paste the figures into your quotation or invoice with Copy result, or keep a PDF with the deal documents. Share as link copies a link that opens the calculator with your numbers, so a colleague can check them. The calculator keeps your last five calculations on this device only; nothing is sent to a server. To turn the lines into a full tax invoice, use the "Create a tax invoice with these lines" button.
When invoices run into the dozens every day
A calculator is enough to find one number or check one invoice. When you buy and sell every day, VAT has to be right on every invoice and every return and then add up in the VAT return, and working it out by hand becomes the main source of errors. At Microtec we offer businesses in the Kingdom accounting software (ERP) that puts sales, purchasing, inventory and finance in one system, and our solutions are approved by the Zakat, Tax and Customs Authority. Try it before your next return is due.