VAT calculator KSA with property tax.
Add or remove 15% VAT on any quote, or work out the 5% real estate transaction tax on a property sale in Saudi Arabia.
General information, not tax advice. Confirm your case with ZATCA or a tax adviser.
Interior design companies can use it to show quotes with and without VAT, and developers and buyers can check the transaction tax before a sale.
Short answer: Saudi Arabia charges VAT at 15%. To add VAT, multiply by 1.15; to remove VAT from a VAT-inclusive price, divide by 1.15. Property sales are exempt from VAT and pay a 5% real estate transaction tax (RETT) instead, which the seller pays by default.
VAT or RETT in Saudi Arabia.
Since October 2020, property sales in Saudi Arabia pay a 5% real estate transaction tax instead of VAT. Most other goods and services, including interior design work, are charged VAT at the standard 15% rate.
| Transaction | Tax | Who usually pays |
|---|---|---|
| Interior design or construction services | VAT 15% (standard rate) | Client, on the invoice |
| Sale of a villa, apartment or land | RETT 5%, VAT exempt | Seller, unless agreed otherwise |
| Off-plan unit bought from a developer | RETT 5% on the transfer | Seller, unless agreed otherwise |
| Citizen’s first home | State pays RETT on the first SAR 1,000,000 | Parties pay 5% on any amount above |
| Residential lease | VAT exempt | – |
| Commercial lease | VAT 15% | Tenant, on the rent invoice |
How RETT is worked out
RETT is 5% of the price agreed between buyer and seller, as long as that price is not below the property’s fair market value. It is paid through a declaration on or before the date the sale contract is notarised. Some transfers are exempt, such as dividing an inheritance, registered endowments, and transfers between spouses or relatives up to the third degree.
The first-home support
For a Saudi citizen buying a first home, the state bears the RETT on the first SAR 1,000,000 of the price. The buyer gets a first-home certificate from the Ministry of Municipalities and Housing, and the parties pay 5% only on any amount above SAR 1,000,000. Eligibility rules are set by the ministry and can change, so check the current criteria before you rely on it.
Adding and removing VAT
To add 15% VAT, multiply the net amount by 1.15. An interior design quote of SAR 85,000 becomes SAR 97,750 with VAT. To find the amount before VAT from a VAT-inclusive total, divide by 1.15. VAT always makes up 13.04% of a VAT-inclusive total.
Sources: ZATCA, Simplified guide to the real estate transaction tax; ZATCA, RETT implementing regulations; Argaam, ZATCA approves new real estate tax rules (April 2025); ClearTax, VAT rates in Saudi Arabia. Checked by Digify365 on 9 November 2026. General information, not tax advice.
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See the guideVAT and property tax questions.
What is the VAT rate in KSA?
The standard VAT rate in Saudi Arabia is 15%, in force since 1 July 2020. Most goods and services, including interior design work, are charged at this rate.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.15. For example, SAR 115,000 including VAT is SAR 100,000 before VAT, with SAR 15,000 of VAT.
Is VAT charged on property sales in Saudi Arabia?
No. Sales of real estate are exempt from VAT and pay a 5% real estate transaction tax (RETT) instead. Commercial leases still carry 15% VAT, while residential leases are exempt.
Who pays the real estate transaction tax?
The seller pays RETT by default, on or before the date the sale is notarised. Buyer and seller can agree a different split in the sale agreement.
What is the first-home support for RETT?
For a Saudi citizen buying a first home, the state bears the RETT on the first SAR 1,000,000 of the price, with a certificate from the Ministry of Municipalities and Housing. The parties pay 5% on any amount above that.
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