Below is a table that outlines the VAT rates in Saudi Arabia:
| Category | VAT Rate | Details |
|---|---|---|
| Standard VAT Rate | 15% | Applicable to most goods and services, effective since July 2020. |
| Zero-Rated VAT | 0% | Applies to specific goods and services, such as exports, and certain financial services. |
| Exempt from VAT | N/A | Applies to specific sectors, including residential real estate and some financial services. |
| Reduced VAT Rate | N/A | Saudi Arabia does not currently have a reduced VAT rate for specific goods or services. |
Additional Notes:
- Increase in VAT: The VAT rate in Saudi Arabia was increased from 5% to 15% in July 2020 as part of the government’s measures to boost revenue.
- VAT Registration: Businesses with annual revenue above a certain threshold are required to register for VAT in Saudi Arabia.
- VAT Refunds: In some cases, VAT refunds are available, particularly for tourists or businesses involved in export activities.