VAT Calculator for Saudi Arabia (15%) and the UAE (5%): Add or Remove VAT

This guide is for anyone who needs the VAT on a price in the Gulf: a shopper checking a receipt, a freelancer writing a quote, or a small business preparing invoices. It answers four questions. How do you add VAT to a price? How do you take VAT out of a price that already includes it? Which rate applies in Saudi Arabia, the UAE, Bahrain, Oman, Qatar and Kuwait? And what must a simplified tax invoice show? Enter an amount below, say whether it is before or after VAT, and pick the rate.

Calculator

VAT rates in the Gulf in October 2026

Four of the six Gulf states charge VAT. The standard rate applies to most goods and services; some supplies are zero-rated or exempt instead (see the edge cases below).

Country	Standard rate	To add VAT	To remove VAT	VAT inside a price of 100
Saudi Arabia	15% (since 1 July 2020; it was 5% when VAT started in January 2018)	× 1.15	÷ 1.15	13.04
United Arab Emirates	5% (since 1 January 2018)	× 1.05	÷ 1.05	4.76
Bahrain	10% (since 1 January 2022; it was 5% before)	× 1.10	÷ 1.10	9.09
Oman	5% (since April 2021)	× 1.05	÷ 1.05	4.76
Qatar	No VAT	Nothing to add	Nothing to remove	0
Kuwait	No VAT	Nothing to add	Nothing to remove	0

Qatar and Kuwait had not introduced VAT as of October 2026. If you are pricing a contract that runs into the future, check each country's tax authority for announcements first.

How to add VAT to a price

VAT is charged on the price before VAT. Multiply that price by the rate to get the tax, then add the two together. In Saudi Arabia ZATCA's invoicing guideline puts it simply: a registered business applies 15% added to the selling price. In the UAE, Article 3 of Federal Decree-Law No. 8 of 2017 sets the standard rate at 5% of the value of the supply.

VAT = price before VAT × rate
Total = price before VAT × (1 + rate)
Saudi Arabia: total = price × 1.15

How to take VAT out of a VAT-inclusive price

When a price already includes VAT, the tax is not 15% of that price. The 15% was worked out on the smaller pre-VAT amount, so you have to divide, not subtract.

Price before VAT = total ÷ (1 + rate)
VAT = total − price before VAT = total × rate ÷ (1 + rate)
Saudi Arabia: VAT = total × 15 ÷ 115

That is why a Saudi receipt of SAR 100.00 holds SAR 13.04 of VAT and SAR 86.96 of price, not SAR 15 and SAR 85. In the UAE and Oman the VAT inside 100 is 4.76, and in Bahrain it is 9.09.

Worked examples

Every figure below comes from the calculator above with the inputs stated.

Example 1: a Saudi quote before VAT

A designer in Riyadh quotes SAR 2,500 before VAT. The VAT is SAR 2,500 × 15% = SAR 375.00, so the client pays SAR 2,875.00.

2,500 × 1.15 = SAR 2,875.00

Example 2: a Saudi receipt that includes VAT

A receipt shows SAR 2,300 including VAT. Divide by 1.15: the price before VAT is SAR 2,000.00 and the VAT is SAR 300.00.

2,300 ÷ 1.15 = SAR 2,000.00, so VAT = SAR 300.00

The shortcut people reach for gives the wrong answer. Fifteen percent of SAR 2,300 is SAR 345.00, which would leave SAR 1,955.00 as the "price". Add 15% back to SAR 1,955.00 and you get SAR 2,248.25, not the SAR 2,300 on the receipt. The shortcut overstates the VAT by SAR 45.00.

Example 3: the UAE at 5%

A supplier in Dubai charges AED 3,200 before VAT. VAT is AED 160.00 and the total is AED 3,360.00. Going the other way, a restaurant bill of AED 1,000 including VAT holds AED 47.62 of VAT on a price of AED 952.38.

3,200 × 1.05 = AED 3,360.00
1,000 ÷ 1.05 = AED 952.38, so VAT = AED 47.62

The same method works in Bahrain and Oman: BHD 50 before VAT becomes BHD 55.000 at 10%, and OMR 80 becomes OMR 84.000 at 5%.

Rounding VAT on invoices

VAT often works out to a fraction of the smallest coin, so it has to be rounded. Both Saudi Arabia and the UAE say how.

Saudi Arabia. ZATCA's invoicing guideline says the VAT must be shown in riyals and halalas. A unit price may be shown unrounded, but if the VAT includes a fraction of a halala it must be rounded to the nearest halala, and the rounded figures must be the ones used in your VAT return.
UAE. Article 61 of the VAT Executive Regulation (Cabinet Decision No. 52 of 2017) allows tax calculated to a fraction of a fils to be rounded to the nearest fils using mathematical rounding.

Where you round matters. Say a shop sells 20 items at SAR 0.99 each before VAT. The VAT on one item rounds to SAR 0.15; twenty of those make SAR 3.00. Work out the VAT on the line total instead, SAR 19.80, and it is SAR 2.97. Repeated over thousands of receipts, a gap like that can make your records disagree with your return. Many accounting systems work out VAT on each line total (quantity × unit price) and round once. Whichever method yours uses, apply it the same way every time.

The calculator shows each currency with its own decimals: two for the riyal and the dirham, three for the Bahraini dinar and the Omani rial, which are divided into 1,000 fils and baisa.

What a simplified tax invoice must show

A simplified tax invoice is the shorter invoice most shops and restaurants hand to consumers. The two largest markets set out its contents in their regulations.

Saudi Arabia

Under Article 53 of the VAT Implementing Regulations, as ZATCA's guideline explains it, a simplified tax invoice may be issued for a supply worth less than SAR 1,000, and is used for every supply to an individual who is not registered for VAT, whatever the value. At a minimum it must show:

the date it was issued;
the supplier's name, address and VAT number;
what goods or services were supplied;
the amount payable;
the VAT payable in riyals, or a clear statement that the amount includes VAT at 15%.

Invoices must be issued in Arabic, and may carry another language alongside it. If the price is in another currency, the VAT amount must still be stated in Saudi riyals. VAT-registered businesses resident in the Kingdom must also issue invoices electronically under ZATCA's e-invoicing (FATOORA) rules; this guide does not cover those technical requirements, so follow ZATCA's e-invoicing guidance for them.

United Arab Emirates

Article 59(2) of the VAT Executive Regulation lists what a simplified tax invoice must contain: the words "Tax Invoice", the supplier's name, address and Tax Registration Number, the date of issue, a description of what was supplied, and the total consideration and tax charged in dirhams. It may be used when the customer is not registered for VAT, or when the customer is registered and the supply does not exceed AED 10,000 (except where the customer must account for the VAT under the reverse charge). Separately, Article 38 of the Decree-Law requires advertised prices to include VAT.

Find your case

Your situation	What to do
You have a price before VAT	Multiply by 1.15 in Saudi Arabia, 1.05 in the UAE or Oman, 1.10 in Bahrain.
You have a total that includes VAT	Divide by the same figure to get the price, then subtract to get the VAT. Never take 15% off the total.
You want only the VAT inside a Saudi total	Total × 15 ÷ 115. In the UAE and Oman, total × 5 ÷ 105; in Bahrain, total × 10 ÷ 110.
You sell in Qatar or Kuwait	No VAT to add as of October 2026.
You are not registered for VAT	Do not add VAT or issue a tax invoice. In Saudi Arabia, registration is mandatory once taxable supplies over 12 months exceed SAR 375,000 and optional above SAR 187,500; the UAE uses AED 375,000 and AED 187,500.
The item is zero-rated or exempt	The standard rate does not apply. Check the list for your country (see below).
You invoice in US dollars or another currency	Show the VAT amount in riyals (Saudi Arabia) or dirhams (UAE) as well.
You give a discount	Charge VAT on the price after the discount. In the UAE, Article 39 of the Decree-Law reduces the value of the supply in proportion to the discount.

When the standard rate does not apply

Zero-rated supplies carry VAT at 0%. In the UAE they are listed in Article 45 of the Decree-Law. Oman's Tax Authority lists exports, 513 essential goods and international transport among its zero-rated supplies.
Exempt supplies carry no VAT at all. The UAE lists them in Article 46. ZATCA gives certain financial services and certain real estate supplies as examples of exempt supplies in Saudi Arabia, and Oman exempts financial services and the rental of residential property. Sales of real estate in Saudi Arabia are generally subject to a separate real estate transaction tax, which this calculator does not cover.
Small businesses below the registration threshold do not charge VAT. ZATCA warns that a person who is not registered but issues a document meant as a tax invoice, or collects any amount as VAT, faces a fine of up to SAR 100,000.

Common mistakes

Taking 15% off a VAT-inclusive price. It understates the price and overstates the VAT, as Example 2 shows. Divide by 1.15.

Adding VAT twice. If a supplier's price list already includes VAT, adding 15% again overcharges the customer. Ask whether a quote is before or after VAT, and say so on your own quotes.

Using an old rate. Saudi VAT has been 15% since July 2020 and Bahrain's 10% since January 2022. Spreadsheets built before then may still use 5%.

Rounding each unit, then multiplying. Rounding the VAT on one unit and multiplying by the quantity can drift away from the VAT on the line total.

Charging VAT without being registered. Only a registered business may collect VAT or issue a tax invoice.

Leaving required details off the invoice. A Saudi simplified tax invoice without the supplier's VAT number, or without Arabic, does not meet the rules.

Frequently asked questions

Multiply the price before VAT by 0.15 to get the VAT, or by 1.15 to get the total. A price of SAR 2,500 carries SAR 375.00 of VAT, for a total of SAR 2,875.00.

Divide the total by 1 plus the rate: by 1.15 in Saudi Arabia, 1.05 in the UAE or Oman, and 1.10 in Bahrain. SAR 2,300 including VAT is SAR 2,000.00 before VAT plus SAR 300.00 of VAT.

Because the 15% is charged on the price before VAT. Inside a VAT-inclusive total, VAT is 15/115 of the amount: SAR 13.04 of every SAR 100.00 you pay.

Yes. Article 3 of Federal Decree-Law No. 8 of 2017 sets the standard rate at 5%, and the current consolidated text published by the Federal Tax Authority still says 5%. Some supplies are zero-rated or exempt.

Not as of October 2026. Neither country had introduced VAT by then, so there is nothing to add or remove. Check for announcements before relying on this for future contracts.

In the UAE, Article 38 of the Decree-Law says advertised prices must include VAT. In Saudi Arabia, a simplified tax invoice must show either the VAT amount or a clear statement that the price includes VAT at 15%.

Pricing a product rather than checking one price? The pricing calculator sets a selling price from your cost and margin and adds VAT, and the break-even calculator works on prices before VAT. This guide is also available in Arabic.

The calculator gives an estimate for general information, not tax advice. Your VAT position depends on what you sell, to whom and where. For a definite answer, ask ZATCA, the UAE Federal Tax Authority, Bahrain's National Bureau for Revenue, Oman's Tax Authority or a licensed tax adviser. How we check our figures is set out in our editorial policy.

Sources

Rules checked against the official text on 18 October 2026.