What is the VAT rate in Saudi Arabia?

The standard VAT rate is 15%, applied to most goods and services including food and groceries. Exports outside the GCC and certain medicines are zero-rated.

Is e-invoicing mandatory in Saudi Arabia?

Yes. ZATCA's Fatoora e-invoicing is mandatory. Today bookeeper generates bilingual, VAT-correct tax invoices, and native Fatoora clearance is on our roadmap.

Is there income tax on salaries in Saudi Arabia?

No personal income tax on salaries. The main payroll deduction is GOSI social insurance.

Localized for Saudi Arabia

Accounting & tax software for Saudi Arabia

AI-powered, bilingual accounting tuned to Saudi Arabia — the right tax on every invoice, local payroll, and reports in Arabic and English.

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Everything included · $1/mo for 3 months, then $12.99 · Arabic & English

Currency
SAR
Saudi Riyal
Tax
15%
VAT
Social insurance
9.75% / 11.75%
Employee / Employer

VAT

How VAT works in Saudi Arabia

Saudi Arabia charges a standard 15% VAT on almost everything — including food and groceries, which (unlike the UAE or Bahrain) are not zero-rated. bookeeper applies the correct treatment to every line so ZATCA returns come out right.

Standard rate

15%

Registration

Mandatory registration at SAR 375,000 of annual taxable supplies; voluntary from SAR 187,500.

Filing

Monthly filing if annual taxable supplies exceed SAR 40M, otherwise quarterly.

E-invoicing

Live & mandatory

ZATCA Fatoora

Saudi Arabia's ZATCA "Fatoora" e-invoicing is mandatory, with Phase 2 (Integration) onboarding rolling out in successive waves by taxpayer revenue. Today bookeeper produces bilingual, VAT-correct tax invoices showing your tax registration number; native ZATCA Fatoora clearance is on our roadmap.

How each item is taxed

Standard15%
Most goods & services, all food & groceries, commercial leases
Zero-rated0%
Exports outside the GCC, SFDA medicines, investment metals ≥99%, education & healthcare for Saudi nationals
Exempt
Margin-based financial services, residential leases, real-estate sales (5% RETT instead)

GOSI (General Organization for Social Insurance)

Payroll & social security

There is no personal income tax on salaries. Payroll cost centres on GOSI, calculated on basic salary plus housing only.

Employee

9.75%

Employer

11.75%

Rules that matter

Saudi nationals: employee 9.75% + employer 11.75% (contribution base = basic + housing, capped at SAR 45,000/month).
Non-Saudi expats: 2% employer (occupational hazards) only, 0% employee.
A staged GOSI rate reform is raising national contributions gradually — bookeeper tracks the effective rate.

bookeeper replies

Your AI accountant, in Arabic

Ask in plain Arabic. bookeeper applies Saudi Arabia's rules and answers in the language you use.

You ask

كم ضريبة القيمة المضافة على فاتورتي؟

bookeeper replies

يطبّق bookeeper ضريبة القيمة المضافة السعودية 15% على البنود الخاضعة تلقائيًا، ثم يعرض الإجماليات الدقيقة لإقرارك الضريبي.

Saudi Arabia

Why Saudi Arabia businesses choose bookeeper

Bilingual, VAT-correct tax invoices out of the box — with native ZATCA Fatoora clearance on the roadmap.
The 15% rate and every zero-rated and exempt case applied correctly, line by line.
GOSI-aware payroll on the basic-plus-housing base, with end-of-service accruals.
Arabic-first, fully right-to-left invoices and reports your accountant already trusts.

Coverage across the region

Ready when you are

Put your Saudi Arabia books in order today

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