How the Saudi VAT calculation works
Saudi Arabia's standard VAT rate is 15% for taxable supplies where the standard rate applies. If you start with a VAT-exclusive amount, the VAT is calculated as the amount multiplied by 15%, then added to the original amount.
Add VAT formula
Total = Amount + VAT
Remove VAT formula
VAT = Total − VAT-exclusive amount
Example
For a VAT-exclusive amount of SAR 1,000, 15% VAT is SAR 150 and the total including VAT is SAR 1,150. If SAR 1,150 is already VAT-inclusive, the VAT portion is SAR 150 and the VAT-exclusive amount is SAR 1,000.