How to calculate it
| You want | Saudi Arabia (15%) | UAE (5%) |
|---|---|---|
| VAT on a price before VAT | price × 0.15 | price × 0.05 |
| Price including VAT | price × 1.15 | price × 1.05 |
| Price before VAT from a total | total ÷ 1.15 | total ÷ 1.05 |
| VAT included in a total | total × 15 ÷ 115 | total × 5 ÷ 105 |
Worked examples
A price of 1,000 SAR before VAT in Saudi Arabia
VAT: 1,000 × 0.15 = 150 SAR. Price with VAT: 1,150 SAR.
An invoice of 2,300 SAR including VAT
Price before VAT: 2,300 ÷ 1.15 = 2,000 SAR. VAT: 300 SAR.
An invoice of 525 AED including VAT in the UAE
Price before VAT: 525 ÷ 1.05 = 500 AED. VAT: 25 AED.
Frequently asked questions
Why can’t I just subtract 15% from the total?
Because VAT is charged on the price before VAT, not on the total. 15% off 1,150 gives 977.50, but the right answer is 1,000. That is why you divide by 1.15.
Is everything subject to VAT?
No. Some supplies are exempt or zero-rated, such as some financial services and exports. Check with ZATCA in Saudi Arabia or the Federal Tax Authority in the UAE.
Last reviewed: October 2026. For special cases, contact ZATCA (Saudi Arabia) or the Federal Tax Authority (UAE).
This page was translated from Arabic. If something is unclear or wrong, please tell us.