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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