Exclusive of VAT
|VAT Amount:||SAR 0|
|Total Value:||SAR 0|
A VAT rate of 15% should be added to the sale price. However, if the sale price includes VAT, you’ve to exclude the VAT from the sale price using the second method mentioned above.
Initially, the VAT rate was 5% when the KSA government introduced VAT. However, it raised the VAT rate to 15% w.e.f 1st July 2020.
When the sale price includes VAT, you’ve to exclude the VAT from the sale price using the second method mentioned above.
MRP is the maximum sale price, including all taxes; hence you’ve to determine the VAt by deducting the same from MRP. You can use the second method mentioned above.
All KSA residents obtain VAT registration if their annual turnover of the taxable supplies in the last 12 months exceeds SAR 375,000.
You can type in your sale price and multiply it with the (1+ VAT rate) to obtain the gross amount collected to be from customers.