Saudi Arabia VAT codes and rates
Saudi Arabia charges VAT at 15%. When you create a company in Saudi Arabia, Nefin sets up 5 sales and 6 purchase codes, each tied to a box of the VAT return (ZATCA). Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the VAT Return - VAT on Sales and the VAT Return - VAT on Purchases, ready to file every quarter.
VAT codes from the VAT return (ZATCA)
Each code is the box or line it fills on the VAT return (ZATCA), named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| 1 | Standard rated sales 15% (Box 1)Default | 15% |
| 2 | Sales on which the government bears the VAT 15% (Box 2) | 15% |
| 3 | Zero rated domestic sales (Box 3) | 0% |
| 4 | Exports (Box 4) | 0% |
| 5 | Exempt sales (Box 5) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| 7 | Standard rated domestic purchases 15% (Box 7)Default | 15% |
| 8 | Imports subject to VAT paid on import 15% (Box 8) | 15% |
| 9 | Imports under reverse charge mechanism (Box 9) | 0% |
| 10 | Zero rated purchases (Box 10) | 0% |
| 11 | Exempt purchases (Box 11) | 0% |
| NR-ND | Purchases with non-deductible VAT 15% (no box) | 15% |
Saudi Arabia VAT books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
VAT Return - VAT on Sales
Sales
- [1]1 Standard Rated Sales
- [2]2 Sales on which the government bears the VAT
- [3]3 Zero Rated Domestic Sales
- [4]4 Exports
- [5]5 Exempt Sales
Totals Nefin calculates
- [1-VAT] 1 VAT amountSum of the tax charged in [1]
- [2-VAT] 2 VAT amountSum of the tax charged in [2]
- [6] 6 Total Sales - amountSum of the net amounts in [1] + [2] + [3] + [4] + [5]
- [6-VAT] 6 Total Sales - VAT amountTotal of [1-VAT] + [2-VAT]
Purchase book
VAT Return - VAT on Purchases
Purchases
- [7]7 Standard Rated Domestic Purchases
- [8]8 Imports subject to VAT paid on import
- [9]9 Imports subject to VAT accounted for through the reverse charge mechanism
- [10]10 Zero Rated Purchases
- [11]11 Exempt Purchases
Not reported on the return
- [NR-ND]Purchases with non-deductible VAT
Totals Nefin calculates
- [7-VAT] 7 VAT amountSum of the tax charged in [7]
- [8-VAT] 8 VAT amountSum of the tax charged in [8]
- [9-VAT] 9 VAT amount (reverse charge, 15%)Net amount × 15%, from [9]
- [12] 12 Total Purchases - amountSum of the net amounts in [7] + [8] + [9] + [10] + [11]
- [12-VAT] 12 Total Purchases - VAT amountTotal of [7-VAT] + [8-VAT] + [9-VAT]
Source
These codes were transcribed from the tax authority's own form or instructions: ZATCA eService guide Submit VAT Return (eServices_Manual_009, 2026) - https://zatca.gov.sa/en/eServices/Documents/eServices_Manual_009.pdf.
Frequently asked questions
What is the VAT rate in Saudi Arabia?
The standard rate is 15%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which VAT codes does Nefin set up for a company in Saudi Arabia?
5 sales codes and 6 purchase codes, each named after the VAT return (ZATCA) box it fills, for example 1 (Standard rated sales 15% (Box 1), 15%), 2 (Sales on which the government bears the VAT 15% (Box 2), 15%) and 3 (Zero rated domestic sales (Box 3), 0%).
How often is the VAT return (ZATCA) filed?
Nefin defaults to quarterly filing, the usual period for a small or medium registered business in Saudi Arabia. Your tax authority may assign you a different one.
Are these Saudi Arabia VAT codes official?
Yes. They were transcribed from the tax authority's own form or filling instructions (ZATCA eService guide Submit VAT Return (eServices_Manual_009, 2026) - https://zatca.gov.sa/en/eServices/Documents/eServices_Manual_009.pdf).
Does Nefin produce the Saudi Arabia VAT books?
Yes. The VAT Return - VAT on Sales lists every invoice and the VAT Return - VAT on Purchases every bill, one row per document with a column for each return box, plus the totals the return asks for.