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 has increased VAT due to the COVID-19 crisis.

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)

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