From 5% to 15%
The 2020 hike aligned Saudi VAT with global norms and dramatically increased revenue per transaction, forcing retailers to reprint menus, telecom tariffs, and real-estate payment schedules. Consumers still remember the 5% era, so transparency in quoting “plus VAT” matters for trust. Government services and oil-related supplies can follow special rules — always read the implementing regulations, not headlines.
Taxable Supplies
Electronics, dining, professional fees, and construction services are typically 15% unless a schedule explicitly zero-rates or exempts them. Mixed contracts must be unbundled: a hospital invoice might show taxable room service beside zero-rated surgery drugs. Input tax recovery depends on taxable use — capital assets need capitalization rules consistent with ZATCA audits.
E-Invoicing
Phase 2 e-invoicing integrates point-of-sale and ERP data with ZATCA’s Fatoorah platform, requiring cryptographic stamps and real-time clearance for B2B and B2C in scope. Non-compliance blocks invoice validity, so calculators are only the first step — invoicing hygiene drives deductibility.
Registration
Mandatory VAT registration generally hits at SAR 375,000 of taxable supplies in 12 months, with voluntary band down to SAR 187,500. Groups can seek single registration, and non-residents may appoint fiscal representatives. Thresholds and deadlines change — confirm on zatca.gov.sa before relying on third-party summaries.
Riyadh retail vs export invoice
Keep 15% for mall purchases in Riyadh. If you are exporting goods with customs evidence, switch the rate field to 0 after your compliance team signs off — the math is the same, only the percentage changes.