# VAT Calculator Saudi Arabia 2026 — Add or Remove 15%

Source page: https://valem.run/calculators/saudi-arabia/vat

Saudi VAT is 15%. Registration is mandatory once taxable supplies exceed SAR 375,000 over the preceding twelve months, voluntary from SAR 187,500, and unavailable below that.

**Tax year:** 2026

## How it is calculated

ZATCA states the rate in its own guidance: taxable persons *"must impose tax at a rate of 15% (assuming the standard rate applies to those supplies), which is added to the final sale price"*. There is one rate and no reduced band.

**Fifteen percent is three times the UAE’s five**, which is worth pausing on because the two states introduced VAT together as GCC members in 2018 at the same 5%. Saudi Arabia tripled its rate in July 2020 and the UAE did not follow, so a GCC-wide assumption about VAT is now wrong in both directions depending on which country you start from.

The registration structure mirrors the UAE’s: mandatory above **SAR 375,000** of taxable supplies over the preceding twelve months, voluntary from **SAR 187,500**, and not available at all below that — hence a status rather than a yes/no. One Saudi-specific detail: the voluntary test can be met by taxable **expenses** as well as supplies, which lets a business that is spending before it sells register and reclaim its input tax.

## Worked example

With Amount of 100, this model computes Vat Amount of 15.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `amount` | Amount | number |
| `direction` | Direction | string |
| `annualTurnover` | Taxable turnover, last 12 months | number |
| `reverseCharge` | B2B reverse charge applies | boolean |

## Sources

- [ZATCA - Guideline on Professional Services under VAT Provisions, 3rd version May 2026 (15%)](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-on-Professional-Services-under-VAT-Provisions.pdf) (checked 2026-10-05)
- [ZATCA - same guideline, SAR 375,000 mandatory / SAR 187,500 voluntary thresholds](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-on-Professional-Services-under-VAT-Provisions.pdf) (checked 2026-10-05)

## What this page claims

The Valem engine reproduces this model's formula through 6 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/saudi-arabia/vat.json
- Compute by URL: https://valem.run/calculators/saudi-arabia/vat.json?amount=100
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `saudi-arabia/vat`)