How to Calculate 15% VAT on a Saudi Invoice (Before and After Tax)
A practical guide to Saudi VAT calculations for tax-exclusive and tax-inclusive prices, with clear examples and common mistakes.
The calculation depends on how the price is stated: before VAT or inclusive of VAT. Decide that first, because using the wrong formula changes the net amount, VAT amount, and invoice total.
When the price excludes VAT
For a supply subject to the standard rate, multiply the net price by 15%, then add the VAT to the net amount.
- Net price: SAR 1,000.
- VAT: 1,000 × 0.15 = SAR 150.
- VAT-inclusive total: SAR 1,150.
When the price includes VAT
Do not multiply the inclusive total by 15%, because VAT is already inside it. ZATCA's Professional Services VAT Guideline gives the extraction formula: inclusive total × 15 ÷ 115.
- VAT-inclusive total: SAR 1,150.
- VAT: 1,150 × 15 ÷ 115 = SAR 150.
- Net price: SAR 1,000.
Discounts and the correct order
Apply the agreed discount first, then calculate VAT on the taxable consideration after the discount. Keep items with different VAT treatments separate. Not every item is necessarily standard-rated; a supply may be zero-rated, exempt, or outside the scope depending on the facts.
A final invoice check
- Confirm whether displayed prices include or exclude VAT.
- Review the VAT treatment of every line.
- Show net, VAT, and gross totals separately.
- Review rounding across line and document totals.
- When useful, compare the result with ZATCA's official Merchant and Consumer VAT Calculator.
Note: These examples cover standard-rated supplies only and do not replace advice on the VAT treatment of your specific activity.
Calculate totals and create a local invoice PDF
Frequently Asked Questions
How do I calculate 15% VAT on a net price?
Multiply the net price by 0.15, then add the result to the net price.
How do I extract VAT from an inclusive price?
Multiply the VAT-inclusive total by 15 and divide the result by 115.
Are all Saudi sales subject to 15% VAT?
No. Some supplies are zero-rated, exempt, or outside the scope, so each line needs the correct treatment.
Keep learning
Related Saudi guides
Invoice Types
How to issue a tax invoice in Saudi Arabia
Choose a standard or simplified invoice, enter the required details, calculate VAT, and check the issue date and QR code using official ZATCA sources.
Read guideInvoice Types
Quotation invoice: when do you need a tax invoice instead?
A quotation sets out a commercial proposal. Learn what to include and when a sale or advance payment requires a tax invoice instead.
Read guideInvoice Types
Receipt voucher or tax invoice: when do you need each?
A receipt voucher records money received but does not remove a required tax invoice. Learn the difference, advance-payment rules, and how to link the documents.
Read guideReady to Create Your Invoice?
Create a local invoice PDF with ZATCA-format QR data – free with no signup
Create Invoice Now✓ 100% Free • ✓ No Signup • ✓ ZATCA-format QR data