Tax Calculator: How to Calculate VAT in Saudi Arabia (Add, Subtract, From Total Amount)

Value‑Added Tax (VAT) has become an essential part of daily life in Saudi Arabia. Whether you want to know the tax amount on your purchases, the price of a product before tax, or calculate the difference — this article provides all the calculations you need with an interactive tax calculator.

VAT Rate in Saudi Arabia

Since 1 July 2020, the VAT rate in the Kingdom of Saudi Arabia is 15 %. This rate applies to most goods and services (with some exemptions such as medicines, healthcare, and education).

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Three Methods to Calculate VAT

1. Add Tax to the Amount (Increase)

This is the most commonly used method. If you have a product or service price without tax and want to know the total after adding 15 %:

Formula:
Tax amount = Original amount × (Tax rate ÷ 100)
Amount after tax = Original amount + Tax amount

Example: If the product price is 1,000 SAR without tax:
Tax amount = 1,000 × 15 % = 150 SAR
Total amount = 1,000 + 150 = 1,150 SAR

2. Extract Tax from the Total Amount (Decrease)

If you have the total amount (including tax) and want to know the original price and the tax amount:

Formula:
Original amount = Total amount ÷ (1 + Tax rate ÷ 100)
Tax amount = Total amount − Original amount

Example: If you paid 1,150 SAR including tax:
Original amount = 1,150 ÷ 1.15 = 1,000 SAR
Tax amount = 1,150 − 1,000 = 150 SAR

3. Compare the Difference Between Two Prices

This method is useful when you have two prices and want to know the absolute and percentage difference, e.g., before and after a discount or tax.

Formula:
Difference = Second price − First price
Percentage change = (Difference ÷ First price) × 100

Frequently Asked Questions About VAT

Do all products have a 15 % tax?

No. Some products and services are exempt from VAT, such as:
🔹 Medicines and medical supplies
🔹 Healthcare services
🔹 Education
🔹 First‑time sale of residential property

How can I calculate tax quickly without a calculator?

You can divide the amount by 100 and multiply by 15, or simply multiply the amount by 0.15. Example: 200 SAR × 0.15 = 30 SAR tax.

Can I get a VAT refund?

Individuals (consumers) generally cannot reclaim VAT. However, businesses registered for VAT can claim input‑tax refunds by submitting periodic tax returns to the Zakat, Tax and Customs Authority.

Conclusion

Calculating VAT is very easy with the formulas explained above. Use the interactive calculator above to try it yourself — you can add or subtract tax and compare any two prices.

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