Saudi Arabian VAT rates

The standard VAT rate for Saudi Arabia is 5%, with a nil VAT rate for some goods. The VAT rate is 15% from 1 July 2020.

Saudi Arabia Covid-19 VAT rate increases

Saudi Arabia has increased VAT due to the COVID-19 crisis.

SupplyOld rateNew rateImplementation dateEnd date
Standard Rate5%15%01 Jul 2020-

Saudi Arabia VAT rates

RateTypeWhich goods or services
15%StandardAll other taxable goods and services
0%ZeroExports of goods or services outside the Council Territory backed by evidence of the movement of the goods/services; Supplies within customs duty suspension zones; Exports of services include where the customer is not resident within the a Council Territory and/or the consumption does not take place within the Territory; International transport services of goods or passengers; Medical equipment and medicines and Investment precious metals

Exempt supplies

The following supplies are VAT exempted, and therefore deemed as not eligible for reclaims of input VAT reclaims:

  • The issue or transfer of money or security for month
  • Credit
  • Operation of current, deposit and savings accounts
  • Financial instruments
  • Islamic finance products – Shari’ah compliant
  • Interesting on loans, credit or debt security
  • Life insurance
  • Residential real estate leases (excludes hotel and similar short-term rentals)

Zero-rated supplies

The following supplies are deemed zero-rated, and therefore eligible for reclaiming VAT suffered:

  • Exports of goods or services outside the Council Territory backed by evidence of the movement of the goods/services
  • Supplies within customs duty suspension zones
  • Exports of services include where the customer is not resident within the a Council Territory and/or the consumption does not take place within the Territory
  • International transport services of goods or passengers
  • Medical equipment and medicines
  • Investment precious metals

Saudi Arabia VAT news

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avalara:content-tags/asset-type/blog-post,avalara:content-tags/tax-type/vat,avalara:content-tags/primary-blog-tags/vatlive/location/africa-and-middle-east/middle-east/saudi-arabia,avalara:content-tags/location/world/middle-east-and-africa/saudi-arabia
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avalara:content-tags/asset-type/blog-post,avalara:content-tags/tax-type/vat,avalara:content-tags/primary-blog-tags/vatlive/location/africa-and-middle-east/middle-east/saudi-arabia,avalara:content-tags/location/world/middle-east-and-africa/saudi-arabia
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