Quick answer: Net VAT = output VAT on your sales − input VAT on your purchases. With 250,000.00 SAR of sales, 10,000.00 SAR of returns and 120,000.00 SAR of purchases before VAT, you owe 36,000.00 SAR − 18,000.00 SAR = 18,000.00 SAR.
How it's calculated
Pick VAT exclusive if your figures are before VAT, or VAT inclusive if they already contain it. Most accounting reports show sales before VAT, but till receipts and card statements usually include it.
Enter the period's sales taxed at 15%. If you gave customers refunds or credit notes, turn on Include returns and enter them too. The VAT on what's left is your output VAT.
Then enter purchases you hold a valid tax invoice for, with any returns to suppliers under their own switch. The VAT on those is your input VAT. If the net comes out negative, you have a credit rather than a bill.
To check a single price instead of a whole period, use the Saudi Arabia VAT calculator.
Worked examples
- Sales 250,000.00 SAR, returns 10,000.00 SAR, purchases 120,000.00 SAR, all before VAT: 36,000.00 − 18,000.00 = 18,000.00
- The same sales and purchases entered including 15% VAT: 37,500.00 − 18,000.00 = 19,500.00
- Sales 120,000.00 SAR and purchases 250,000.00 SAR (a heavy buying month): 18,000.00 − 37,500.00 = -19,500.00 (credit)
What goes in each box
Output VAT is the 15% you charged customers. Zero-rated sales, such as exports outside the GCC, and exempt sales go on the return too, but they carry no VAT, so they don't change the amount you owe and you can leave them out here.
Input VAT is the 15% you paid suppliers on business costs. You can only claim it with a proper tax invoice, and not on everything: VAT on entertaining clients, on cars available for private use and on personal spending usually can't be recovered.
Filing and paying in Saudi Arabia
Businesses with taxable supplies over SAR 40 million a year file monthly; everyone else files quarterly. The return and the payment are both due by the last day of the month after the period ends.
Filing late costs between 5% and 25% of the tax that should have been declared, and paying late adds 5% of the unpaid tax for each month or part of a month. A nil return still has to be filed on time.
Frequently asked questions
What's the difference between output VAT and input VAT?
Output VAT is what you charge on your sales. Input VAT is what you pay on your purchases. The return is simply output minus input: you pay the difference, or claim it back if input is bigger.
What happens if my input VAT is more than my output VAT?
You have a credit. You can ask ZATCA for a refund or carry it forward to reduce the next return. Refund claims are often checked before they're paid, so keep your invoices handy.
My sales figure already includes VAT. What do I do?
Switch to "VAT inclusive". The calculator then takes 15/115 of each amount as VAT instead of adding 15% on top.
How do returns and credit notes change my VAT?
A refund to a customer reduces your output VAT for the period it's issued in. A credit note from a supplier reduces your input VAT. Both are entered as positive amounts here and subtracted for you.
Do I include zero-rated and exempt sales?
Not in this calculator. They're reported on the return but carry no VAT. One catch: if you make a lot of exempt sales, some of your input VAT may not be fully claimable, and that needs an apportionment your accountant can do.
Do I have to register for VAT in Saudi Arabia?
Yes, once your taxable supplies pass SAR 375,000 over 12 months. Between SAR 187,500 and 375,000 you can register voluntarily, which lets you claim back input VAT.
Where does VAT paid at customs go?
It's input VAT, as long as the goods are for your business and you're registered. Add the customs value of the goods, including duty, to your purchases here.
Is this the same as the ZATCA return form?
It covers the figures that decide what you pay. The real form also has boxes for zero-rated sales, exports, imports and reverse-charge purchases, so treat this as a check before you file, not a replacement.