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VAT Calculator

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

A VAT calculator is a tool to add or subtract VAT from any sale amount. You don’t have to bother about the formulas for adding or extracting VAT. Our KSA VAT calculator helps you find the final sale price and VAT amount in a transaction within a couple of clicks.

What is VAT?

Value Added Tax (VAT) is an indirect tax imposed on the supply and imports of goods and services, with certain exceptions. VAT is imposed in more than 160 countries around the world.

VAT is a tax on consumption that is paid and collected at every stage of the supply chain, from when a manufacturer purchases raw materials until a retailer sells the end product to a consumer.

The Kingdom of Saudi Arabia (KSA) government introduced VAT in 2018 and charged 5% for taxable supplies and imports. However, to combat with COVID pandemic, the KSA government raised the VAT rate to 15% w.e.f 1st July 2020.

VAT Calculation Formula

There are two methods to do VAT calculation in KSA. First one is adding VAT to the sale price and second one is excluding the VAT from sale price. Let’s see one by one:

Adding VAT to sale price:
This method is used when the sale is not inclusive of VAT. You can use the below formulas to add the VAT to sale price:
A. VAT Amount = Sale price ×
VAT rate
100
B. Gross Amount = Sale price ×
(1 + VAT rate)
100
Excluding VAT from sale price:
This method is used when the sale price is inclusive of VAT. Below are the formulas to exclude VAT from sale price
A. VAT Amount = Sale price ×
VAT rate
(100 + VAT rate)
B. Net Sale amount = Sale price ×
100
(100 + VAT rate)

VAT Calculation Example

Let’s understand VAT calculation using an example.

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
= SAR 130.43
Net Sale amount = SAR 1,000 ×
(1 + 15)
100
= SAR 869.56

Benefits of using the KSA VAT calculator

Below are the benefits of using the KSA VAT calculator:

A quick calculation of VAT
Accurate invoicing
Reduces human errors
Saves time

Frequently Asked Questions

How is VAT calculated in Saudi Arabia?

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.

What is the VAT rate in Saudi Arabia?

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.

How to calculate including VAT amount?

When the sale price includes VAT, you’ve to exclude the VAT from the sale price using the second method mentioned above.

How to calculate VAT on MRP?

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.

Who is required to register for VAT in KSA?

All KSA residents obtain VAT registration if their annual turnover of the taxable supplies in the last 12 months exceeds SAR 375,000.

How do you add 15% VAT on a calculator?

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.