Saudi Arabia VAT Rate 2026: 15% Standard Rate

How Much Is VAT in Saudi Arabia?

The standard VAT rate in Saudi Arabia is 15% in 2026. Other rates: 0% — Exports, international transport, qualifying medicines and medical equipment, investment precious metals; 5% — Sales of real estate, which are exempt from VAT. Standard VAT/GST rates worldwide range from around 5% to 27%.

How to calculate Saudi Arabia VAT

To add 15% VAT to a net (tax-exclusive) price, multiply it by 1.15. To remove VAT from a gross (tax-inclusive) price, divide it by 1.15.

• Add VAT: SAR 100 net × 1.15 = SAR 115 gross (that is SAR 15 of VAT)
• Remove VAT: SAR 115 gross ÷ 1.15 = SAR 100 net (that is SAR 15 of VAT)

Use the Saudi Arabia VAT calculator above for any amount, or compare Saudi Arabia with every other country in our VAT rates by country table.

Current VAT Rates (2026)

Key VAT milestones

• 2025: Tourist VAT refund scheme launched on 18 April 2025
• 2023: Phase 2 (integration) of Fatoora e-invoicing began in waves from 1 January 2023
• 2021: Phase 1 of Fatoora e-invoicing (electronic generation) from 4 December 2021
• 2020: Rate tripled from 5% to 15% on 1 July 2020; real estate sales moved from VAT to a 5% Real Estate Transaction Tax in October
• 2018: VAT introduced at 5% on 1 January 2018 under the GCC VAT framework

Is the VAT rate the same everywhere in Saudi Arabia?

The same 15% rate applies throughout the Kingdom. Special Economic Zones offer VAT incentives such as suspension or zero rating on certain transactions for licensed zone entities.

Good to know

At 15%, Saudi Arabia has the highest VAT rate in the GCC. The tripling from 5% in July 2020 was introduced to offset the fall in oil revenue during the pandemic.

Sales of land and buildings are exempt from VAT but subject to a 5% Real Estate Transaction Tax, and supplies of residential rental are exempt.

Citizens buying a first home can have up to SAR 1 million of the Real Estate Transaction Tax borne by the state.

Zero-rated supplies (0%)

VAT is charged at 0%, but the seller can still recover input VAT on related costs:

• Exports of goods outside the GCC
• Services supplied to non-residents and consumed outside the Kingdom
• International transport of goods and passengers
• Qualifying medicines and medical equipment
• Investment gold, silver and platinum (purity 99% or more)

VAT-exempt supplies

No VAT is charged, and the seller generally cannot recover input VAT on related costs:

• Margin-based financial services (e.g. interest and lending)
• Life insurance and reinsurance
• Residential property rental
• Real estate sales (subject to 5% Real Estate Transaction Tax instead)

Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Zakat, Tax and Customs Authority (ZATCA) before relying on them.

Cross-border rules

Digital services and e-commerce: Non-resident suppliers of electronic services to consumers in Saudi Arabia must register from the first riyal of sales and charge 15% VAT; B2B imported services are taxed under reverse charge.

Tourist VAT refunds: Yes: since 18 April 2025 tourists can reclaim VAT on purchases of at least SAR 500 at ZATCA-approved stores (via Global Blue), excluding food, fuel and some items.

For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.

Nearby Countries

What is the current VAT rate in Saudi Arabia?

The standard VAT rate in Saudi Arabia is 15% in 2026. Other rates in force: 0% (zero rate), 5% (real estate transaction tax (outside vat)). See the rates table above for exactly what each rate covers.

How do I calculate VAT in Saudi Arabia?

To add 15% VAT, multiply the net price by 1.15. To remove it from a VAT-inclusive price, divide by 1.15; the difference is the VAT. The calculator at the top of this page does both.

Do tourists get a VAT refund in Saudi Arabia?

Yes. Since 18 April 2025 visitors can reclaim VAT on purchases of at least SAR 500 from ZATCA-approved retailers, processed at airport refund points.

Is VAT charged on property in Saudi Arabia?

Sales of real estate are exempt from VAT but subject to a separate 5% Real Estate Transaction Tax. Residential rent is VAT-exempt, while commercial rent is subject to 15% VAT.

Who needs to register for VAT in Saudi Arabia?

Registration threshold: Mandatory above SAR 375,000 of taxable supplies in 12 months; voluntary above SAR 187,500. Foreign businesses: Non-residents making taxable supplies in Saudi Arabia for which they are liable to VAT must register from the first supply (no threshold), generally through a tax representative.

Where these figures come from

• ZATCA: VAT
• VATupdate: Saudi Arabia tourist VAT refund effective 18 April 2025
• Middle East Briefing: Saudi VAT refund for tourists