Please be aware that this site 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.
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.
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.
Last changed 2026-01-26