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Saudi Arabia VAT Rates 2026
Saudi Arabia (المملكة العربية السعودية) levies Value Added Tax as ضريبة القيمة المضافة (VAT). The standard rate is 15%, applied to most goods and services. Saudi Arabia applies a single flat rate with no reduced rates.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 15% | Most goods and services |
| Zero-rated | 0% | Exports outside the GCC, international transport, qualifying medicines and medical goods |
Registration and filing
| Registration threshold | SAR 375,000Mandatory threshold (~USD 100,000); voluntary from SAR 187,500 |
| Tax authority | Zakat, Tax and Customs Authority (ZATCA) |
| Filing frequency | Monthly returns above SAR 40 million turnover; quarterly otherwise |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/SA endpoint to get Saudi Arabia data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/SA
# No authentication required for rate lookups
# Response:
# { "country_code": "SA", "tax_type": "vat",
# "standard_rate": 15, "reduced_rates": [],
# "currency": "SAR", "last_updated": "2026-06-12" }Fetching the rate in code
// Fetch current Saudi Arabia VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/SA').then(r => r.json());
// → { standard_rate: 15, reduced_rates: [],
// currency: 'SAR' }
applyRate(rates.standard_rate);About Saudi Arabia VAT
Saudi Arabia executed the sharpest VAT increase in modern history, tripling the rate from 5% to 15% overnight in July 2020 when oil revenues collapsed. Officials have repeatedly floated an eventual reduction, but 15% remains the rate underpinning Vision 2030's non-oil revenue targets. ZATCA's FATOORA e-invoicing mandate — clearance-based for B2B since 2023 and rolling out in waves by turnover — is the most advanced in the Gulf, and real-estate transactions are carved out into a separate 5% transfer tax.
VAT in Saudi Arabia is administered by the Zakat, Tax and Customs Authority (ZATCA).
Sources: PwC Worldwide Tax Summaries · ZATCA (accessed Jun 2026)
Rate history
- 2018VAT introduced at 5% under the GCC framework
- 2020Tripled to 15% in July to offset pandemic-era oil revenue collapse
Frequently asked questions
What is the VAT rate in Saudi Arabia in 2026?
15%, unchanged since July 2020 when it was tripled from the original 5%.
Is e-invoicing mandatory in Saudi Arabia?
Yes — ZATCA's FATOORA system requires e-invoices for all VAT-registered businesses, with B2B clearance phased in by turnover waves since 2023.
Related concepts and guides: