VAT in Saudi Arabia: A Simple Guide for Merchants on Rates, Registration, and Calculation

Saudi Arabia applies a standard 15% VAT rate to most goods and services, with certain zero-rated and exempt supplies. VAT-registered merchants collect output VAT on sales and may deduct eligible input VAT on purchases under applicable rules.

Mandatory registration generally applies when taxable annual supplies reach SAR 375,000, subject to the relevant registration tests. Accurate invoicing and records support VAT calculations and returns. Cash Cloud offers invoicing and accounting tools, but Saudi VAT and ZATCA capabilities must be verified. Try Cash Cloud for free.