About this tool
Extract or add 15% Saudi VAT using the 3/23 reverse fraction, with line discounts, the legacy 5% rate and ZATCA thresholds.
This calculator splits Saudi VAT out of a tax-inclusive riyal price and adds it to a net price, using the standard 15% rate that has applied since 1 July 2020. Reverse extraction uses the fraction 15/115, which simplifies to 3/23, so an SAR 1,150 invoice contains exactly SAR 150 of VAT on an SAR 1,000 taxable amount. Line discounts, the legacy 5% rate for invoices dated between January 2018 and June 2020, and the ZATCA registration thresholds are all built in.
Open VAT Calculator Saudi Arabia on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Uses 3/23 rather than the common mistake of subtracting 15% from the gross figure.
Applies the line discount first, so the taxable amount matches what a compliant tax invoice must show.
Handles the 15% current rate and the 5% rate that applied until 30 June 2020.
Multiply the VAT-inclusive amount by 15/115, which reduces to 3/23, or divide the total by 1.15 to get the net figure. On SAR 1,150 the VAT is SAR 150 and the taxable amount is SAR 1,000; subtracting 15% of the gross would wrongly give SAR 172.50.
The standard rate is 15%, raised from 5% with effect from 1 July 2020 under Royal Order A/638. Exports outside the GCC, international transport and qualifying medicines and medical equipment are zero-rated, while residential rent and certain financial services are exempt.
Registration with ZATCA is mandatory once annual taxable supplies exceed SAR 375,000. Voluntary registration is possible from SAR 187,500 of taxable supplies or expenses, which lets a small business recover input VAT.
VAT is calculated on the discounted price, so the discount comes off first and the tax applies to the reduced taxable amount. A tax invoice must show the unit price, any discount and the taxable amount separately from the VAT charged, and a licensed adviser can confirm treatment for unusual rebates.
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