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Saudi Arabia VAT rates

Compliance > Saudi Arabia > VAT rates



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Please be aware that this resource is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.

Table of contents
  1. VAT rates in Saudi Arabia

Saudi Arabia introduced Value-Added Tax (VAT) in 2018, initially at 5%, before increasing the rate to 15% on 1 July 2020.

VAT applies to most goods and services, with some categories qualifying for zero-rated or exempt status.

Table of contents
  1. VAT rates in Saudi Arabia

VAT rates in Saudi Arabia

Rate Type Examples of Goods & Services
15% Standard Food, commercial rent, healthcare, telecom, local transport
0% Zero-rated Exports, international transport, qualifying medicines, investment metals
Exempt Exempted Financial services, life insurance, long-term residential real estate leases

 

For more details on VAT regulations, visit the Zakat, Tax and Customs Authority (ZATCA) website.

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