VAT calculator at 15% — add or extract VAT

How is VAT calculated?

The formula depends on what you already have: is the amount in front of you before VAT, or inclusive of it? Confusing the two is the commonest mistake in invoice pricing.

To add VAT to a net amount: VAT = amount × 0.15, and the total = amount × 1.15.
To extract VAT from a VAT-inclusive amount: the amount before VAT = total ÷ 1.15, and the VAT is the difference between them.

Note that extracting VAT is not the same as taking 15% off the total — a common mistake that gives a figure lower than the right one. On an inclusive amount of 115 SAR the VAT is 15 SAR, not 17.25.

Quick examples at 15%

100 SAR before VAT → 15.00 VAT → 115.00 SAR total.
500 SAR before VAT → 75.00 VAT → 575.00 SAR total.
1,000 SAR including VAT → 869.57 before VAT → 130.43 SAR VAT.
250 SAR including VAT → 217.39 before VAT → 32.61 SAR VAT.

Rounding on invoices

Amounts on an e-invoice are shown to two decimal places. When there are several lines, work out the VAT on each line and then add them up. Do not calculate the VAT on the total after rounding, because rounding differences can produce a figure other than the one the Authority's system expects when it validates the invoice.

Not every supply is taxed at 15%

Alongside the standard rate there are zero-rated supplies such as exports outside the implementing GCC states, international transport and certain qualifying medicines and medical equipment, and exempt supplies such as some financial services and residential rent. The difference between them matters in your accounts: a zero-rated supply lets you deduct input VAT, while an exempt one does not.

VAT registration has two thresholds: mandatory once annual taxable revenue passes 375,000 SAR, and voluntary once it passes 187,500 SAR. Check the conditions in force on the Zakat, Tax and Customs Authority website.

Frequently asked questions

The standard rate has been 15% since 1 July 2020, after being 5% from the start of VAT in January 2018. Some supplies are zero-rated and others are exempt, and those are not subject to the 15%.

Divide the VAT-inclusive amount by 1.15 to get the amount before VAT; the difference between the two is the VAT. For example: 115 ÷ 1.15 = 100, so the VAT is 15 SAR.

No. Some supplies are zero-rated, such as exports outside the implementing GCC states, international transport and certain qualifying medicines and medical equipment. Others are exempt, such as some financial services and residential rent. The difference matters: a zero-rated supply lets you deduct input VAT, an exempt one does not.

Registration is mandatory if your annual taxable revenue passes 375,000 SAR, and voluntary if it passes 187,500 SAR. Always check the conditions in force on the Zakat, Tax and Customs Authority website.

No. It is for quick sums only. A compliant e-invoice needs UBL 2.1 format, a digital signature using your business's certificate, and reporting to the Fatoora platform — which is exactly what ZATCA Tools does for free.