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VAT Calculator KSA

Sale value

VAT Rate (%)

Is Sale Inclusive of VAT?

YesNo

Sale Value: Exclusive of VAT	SAR 1,500
VAT Amount:	SAR 225

Total Value:	SAR 1,725

The KSA VAT Calculator is a user-friendly tool that helps you quickly determine VAT amounts for any transaction. Whether you need to add VAT to a price or extract it from an inclusive amount, our online VAT calculator ensures accurate and hassle-free calculations in just a few clicks.

What is VAT?

Value Added Tax (VAT) is an indirect tax levied on the supply and import of goods and services, with some exemptions. This consumption-based tax is applied at each stage of the supply chain, from production to final sale.

In Saudi Arabia, VAT was introduced in 2018 at 5%, but in response to the COVID-19 pandemic, the rate increased to 15% from July 1, 2020. Businesses and individuals are required to comply with VAT regulations as per government policies.

How to Calculate VAT in KSA?

VAT in Saudi Arabia can be calculated in two ways: adding VAT to a sale price or extracting VAT from an inclusive price.

Adding VAT to a Sale Price (Exclusive VAT Calculation)
This method is used when the VAT is not included in the sale price.
A. VAT Amount = Sale price ×
(VAT Rate ÷ 100)
B. Gross Amount = Sale price ×
( 1 + VAT Rate ÷ 100 )
Excluding VAT from sale price (Inclusive VAT Calculation)
This method is used when the sale price already includes VAT.
A. VAT Amount = Sale Price ×
( VAT rate ÷(100 + VAT rate) )
B. Net Sale amount = Sale Price ×
(100 ÷(100 + VAT rate))

VAT Calculation Example in KSA

Let’s take an example to understand VAT calculation:

Sale amount = SAR 1,000

VAT rate = 15%

If the sale price is exclusive of VAT:
VAT amount = SAR 1,000 ×
(15 ÷ 100)
= SAR 150
Gross Amount = SAR 1,000 ×
(1 + 15) ÷ 100
= SAR 1,150
If the sale price is inclusive of VAT:
VAT Amount = SAR 1,000 ×
(15 ÷(100 + 15))
= SAR 130.43
Net Sale amount = SAR 1,000 ×
(100 ÷ (100 + 15))
= SAR 869.56

Benefits of using the KSA VAT calculator

Using our Saudi VAT calculator offers several advantages:

Instant VAT Calculation – Quickly compute VAT for any transaction.
Accurate Invoicing – Ensure your invoices are correct and compliant.
Eliminates Human Errors – Reduces miscalculations and incorrect tax applications.
Time-Saving – Automates VAT computation, streamlining business operations.

Frequently Asked Questions

What is the current VAT rate in Saudi Arabia?

As of July 1, 2020, the VAT rate in Saudi Arabia is 15%.

How do I calculate VAT on an inclusive price?

If the price already includes VAT, use the formula:
VAT Amount = Sale Price × (VAT Rate ÷ (100 + VAT Rate))

How is VAT calculated in Saudi Arabia?

VAT is calculated by adding 15% to the base sale price. If the price includes VAT, it needs to be extracted using the second method mentioned above.

How to calculate VAT on MRP?

MRP (Maximum Retail Price) is an all-inclusive price. To extract VAT, use the formula for inclusive VAT calculation.

Who is required to register for VAT in KSA?

Businesses in Saudi Arabia must register for VAT if their annual taxable turnover exceeds SAR 375,000.

How do you add 15% VAT on a calculator?

Multiply the sale price by (1 + VAT rate ÷ 100) to get the final amount. For example, for SAR 1,000, it would be 1,000 × 1.15 = SAR 1,150. Use our online VAT calculator to quickly and accurately determine VAT in Saudi Arabia for any business transaction.