Saudi Arabian VAT rates

The standard VAT rate for Saudi Arabia is 5 % , with a nil VAT rate for some goods.

Saudi VAT Rates

Rate Type Which goods or services
5% Standard (1st Jan 2018) 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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