- VAT is 15% in Saudi Arabia, 10% in Bahrain and 5% in the UAE and Oman. Qatar and Kuwait have no VAT.
- To take VAT out of a Saudi shelf price, divide by 1.15. To add it, multiply by 1.15.
- Local businesses must register once yearly taxable sales pass SAR 375,000 in Saudi Arabia or AED 375,000 in the UAE.
- Foreign sellers get no threshold. If you make taxable sales there, plan to register from the first sale.
Need to know how much VAT sits inside a SAR 230 price tag? Or what to charge on top of a net quote in Dubai?
This calculator adds or removes VAT for all six Gulf states in one click. It also tells you whether your sales are high enough that you must register.
GCC VAT calculator
Add or extract VAT, then check whether you need to register
Country
Calculation
VAT rate 15%
Net
SAR 200.00
VAT
SAR 30.00
Gross
SAR 230.00
Do I need to register?
Compare your annual taxable sales with the registration thresholds · Saudi Arabia
Your business
Past 12 months, or what you expect over the coming period
- Mandatory: > SAR 375,000unverified
- Voluntary: > SAR 187,500unverified
Voluntary registration available
You are above the voluntary threshold. Registering lets you reclaim input VAT on stock, imports and ads, but you must then charge VAT and file returns.
SAR 125,000 to go before mandatory registration
Estimates based on published VAT rules as of Oct 2026. Not tax advice; confirm with ZATCA, the FTA, NBR, the Oman Tax Authority or a licensed tax agent.
How to use the VAT calculator
It works in two parts: the price calculator on top, and the registration check below.
- 1
Pick a country
Choose Saudi Arabia, the UAE, Bahrain, Oman, Qatar or Kuwait. The rate and currency switch automatically.
- 2
Choose add or extract
Add VAT to a net price for quotes and invoices. Extract VAT from a shelf price to see what you actually keep.
- 3
Enter the price
You'll see the net amount, the VAT and the gross price, with a bar showing the VAT's share.
- 4
Check registration
Pick resident or non-resident, then enter your yearly taxable sales. The tool shows whether registration is mandatory, voluntary or not needed yet.
How it works: rates and thresholds
Gulf VAT follows one shared GCC framework, but each country sets its own rate and thresholds. Here's what the calculator uses:
| Country | Standard VAT | Mandatory registration | Voluntary registration |
|---|---|---|---|
| Saudi Arabia | 15% | SAR 375,000 | SAR 187,500 |
| UAE | 5% | AED 375,000 | AED 187,500 |
| Bahrain | 10% | BHD 37,500 | BHD 18,750 |
| Oman | 5% | OMR 38,500 | OMR 19,250 |
| Qatar | No VAT | – | – |
| Kuwait | No VAT | – | – |
The maths is simple:
- Adding VAT: net price × (1 + rate). In Saudi Arabia that's net × 1.15.
- Removing VAT: gross price ÷ (1 + rate). In the UAE that's gross ÷ 1.05.
Thresholds count your taxable sales over the past 12 months, or what you expect over the next 12. Between the two lines you can choose to register, which lets you reclaim VAT on stock, imports and ads.
Foreign sellers are the big exception. Non-residents get no threshold in Saudi Arabia, Bahrain or Oman, so the tool marks registration as mandatory. The UAE's tax authority says its threshold doesn't apply to foreign businesses either.
Worked example: pricing a SAR 230 product
Say you sell a skincare set on your Saudi store for SAR 230, VAT included. Extract mode splits it like this:
The same product in Dubai works differently. At the UAE's lower rate, an AED 210 shelf price holds just AED 10 of VAT, so more of each sale stays with you.
Now the registration check. Say your Saudi company sold SAR 250,000 last year.
That's above the voluntary line but below the mandatory one, so registering is optional. Many sellers register anyway, because reclaiming import VAT on stock pays for the paperwork. Our landed cost calculator shows how much import VAT that is on your next shipment.
Related guides
These guides explain the rules behind the numbers:
- GCC VAT rates and registration thresholds: the full country-by-country rules for 2026.
- Saudi VAT for non-resident sellers: how foreign brands register and file.
- VAT-inclusive price display rules: how to show prices in Saudi Arabia and the UAE.
Want someone to handle registration and returns? Compare VAT and tax advisors in the Middle East. You'll find more calculators on our free tools page.
Frequently asked questions
Because the 15% is charged on the net price, not the shelf price. On SAR 115, the VAT is SAR 15, which is only about 13% of the total. Dividing by 1.15 gives the right net figure every time.
Sources & further reading
- Value Added Tax (VAT) — Zakat, Tax and Customs Authority (ZATCA)
- Registration for VAT — UAE Federal Tax Authority
- National Bureau for Revenue — Kingdom of Bahrain
- VAT FAQs — Oman Tax Authority
This guide is for general information only and is not legal, tax or financial advice. Rules and fees change — always confirm with the official source or a licensed advisor.
Maya is MiddleEastEcom's lead guide and editor. She researches GCC marketplaces, payments and regulations and turns them into practical playbooks for sellers.
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