How it works
Value added tax (VAT) is charged on most goods and services. Prices are either net (before VAT) or gross (VAT included). Adding VAT to a net price is a simple multiplication; taking VAT out of a gross price needs a division, not a subtraction of the percentage.
add VAT: gross = net × (1 + rate) · VAT = net × rate remove VAT: net = gross ÷ (1 + rate) · VAT = gross − netWorked examples. 1,000 SAR + 15% = 1,150 SAR, of which 150 is VAT. A receipt of 1,150 SAR including VAT → 1,150 ÷ 1.15 = 1,000 net + 150 VAT. In the UAE, 105 AED including 5% VAT → 100 net + 5 VAT. In Egypt, 1,140 EGP including 14% → 1,000 + 140. A common mistake is to take 15% off 1,150 (= 977.50); the correct net is 1,000.
Standard VAT rates in this calculator (checked 6 November 2026)
| Country | Standard rate | Since |
|---|---|---|
| Saudi Arabia | 15% | July 2020 |
| United Arab Emirates | 5% | January 2018 |
| Egypt | 14% | July 2017 |
| Bahrain | 10% | January 2022 |
| Oman | 5% | April 2021 |
| Jordan | 16% | January 2009 |
| Morocco | 20% | April 1986 |
| Tunisia & Algeria | 19% | 2017 / 2018 |
| United Kingdom | 20% | January 2011 |
| Kuwait, Qatar | No VAT in force yet | |
These are the standard rates. Many items are zero-rated or exempt (for example some food, health and education supplies), and some have reduced rates — such as Egypt’s 5% on certain production machinery. Choose “custom rate” for anything else.
For businesses
Registered businesses charge VAT on sales (output VAT) and reclaim VAT on purchases (input VAT); they pay the difference. Registration thresholds differ: for example Saudi Arabia requires registration above 375,000 SAR of annual taxable supplies, and Egypt above 500,000 EGP. Always confirm with the tax authority or an accountant.
Setting prices? See the margin calculator. Writing a VAT invoice total in words? Use number to words.
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