How does VAT work in Saudi Arabia and how to calculated?



With a few exceptions, most products and services are subject to a 5 percent VAT (Value Added Tax)start applied in KSA 01-01-2018. From July 1, 2020, the government increased the normal VAT rate from 05% to 15%.

Who is eligible for VAT in KSA?

VAT registration is open to all enterprises in Saudi Arabia whose taxable supply value exceeds SAR SR 375,000 in the preceding 12 months or anticipates that it will exceed in the following 12 months.

Calculation of Saudi Arabia’s VAT

With this method, you can figure out how much VAT will be on a certain purchase. Then, divide the amount by 100. The outcome is then multiplied by the gross value to arrive at the final payment amount.

For example:

  1. Sales before VAT = SR 100
  2. VAT 15% = 100 * 15% = SR 15
  3. Sales include VAT 15% = 100 * 1.15 = SR 115


VAT Equation = Sales value * VAT %


How can i check my VAT number online in Saudi Arabia?

If you’re sending invoices, be sure to include your VAT number. If you’re unsure about the validity of a VAT number, you can check or lookup for registered VAT number from here.

check aslo about Tax e-invoice in kSA

What is vat return in KSA

Taxpayers must submit a VAT return to provide details about the VAT collected on sales and paid on purchase. There are 16 boxes on the form, and they’re all filled in with information from the transaction. There are two sections to the form. VAT on sales (output VAT) is covered in the first part, whereas VAT on purchases is covered in the second portion (input VAT). For the greyed-out fields, the data values will be produced by the system and computed depending on the information you enter in the other areas.


The VAT return form has three columns in addition to these sections:

  1. Amount
  2. Adjustment
  3. the value-added tax

Is a VAT return the same as a tax return in KSA?

GAZT or ZATCA will provide an extension to a taxpayer who cannot complete their VAT payments by the due date. Please include the following information in your request:

The whole amount of tax that must be paid (tax liability)
The period during which you owe money to the government
The main reason for the deadline extension
As soon as GAZT receives a request for an extension, it will decide whether to grant it or not, and inform the taxpayer.
What is the purpose of a VAT Return?

A VAT return is a form that you submit to HMRC regularly to show them how much VAT you owe them. You cannot file VAT returns if you are not VAT registered. The VAT return reveals how much VAT is payable on sales and how much VAT is refundable on purchases, as calculated by the government.

How to submit VAT return Report

Making Tax Digital’s VAT Return Report  lets you export CSV files so you may submit your VAT returns to HM Revenue & Customs (HMRC) (MTD).

VAT report format Excel

here you can download a Arabic KSA VAT report format Excel.

also you can get and download english VAT report template.