How to Calculate 15% VAT on a Saudi Invoice (Before and After Tax)

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

1. Confirm whether displayed prices include or exclude VAT.
2. Review the VAT treatment of every line.
3. Show net, VAT, and gross totals separately.
4. Review rounding across line and document totals.
5. 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.

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