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.
| Supply | Old rate | New rate | Implementation date | End date |
| Standard Rate | 5% | 15% | 01 Jul 2020 | - |
Saudi Arabia VAT rates |
||
| Rate | Type | Which goods or services |
| 15% | Standard | All other taxable goods and services |
| 0% | Zero | 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 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
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