Skip to content
MiddleEastEcomMiddle East Ecommerce
Localization · Pricing

VAT-Inclusive Pricing Rules in Saudi Arabia and the UAE

In both Saudi Arabia and the UAE, the price a shopper sees must already include VAT: 15% in Saudi Arabia, 5% in the UAE. Checkout may add delivery or a disclosed COD fee, never tax. Turn on "prices include tax" in your platform, and ship cross-border orders DDP so the shown price is the final price.

MayaBy MayaUpdated 6 min read
Key takeaways
  • Consumer prices must include VAT in both markets: 15% in Saudi Arabia, 5% in the UAE.
  • In Saudi Arabia, a checkout total above the shown price is a commercial violation. In the UAE, the fine is AED 5,000 per violation.
  • The UAE allows ex-VAT prices only for B2B sales to VAT-registered buyers and exports, clearly labelled. Saudi consumer prices always include VAT.
  • Switch on "prices include tax" in Shopify, Salla, Zid or WooCommerce, then test a real order.
  • Cross-border sellers should ship DDP, so the shopper never pays import VAT at the door.

In Saudi Arabia and the UAE, the price on the tag is the price the shopper pays, so VAT has to be inside it already.

That's 15% in Saudi Arabia and 5% in the UAE. Checkout can add delivery or a COD fee you've shown upfront, but it can't add tax.

The good news? It's one setting in your store, and Gulf shoppers trust stores that show one honest price from tag to checkout.

Here's the law in each country and the exact switch in Shopify, Salla, Zid and WooCommerce. For price points and margins, see our guide to pricing in SAR and AED, part of our localization guides.

15%
Saudi VAT, shown inside every consumer price
ZATCA, 2026
5%
UAE VAT, shown inside every consumer price
UAE VAT Decree-Law, Art. 38
AED 5,000
UAE fine per violation for ex-VAT prices
Cabinet Decision 49 of 2021

What does the law say in each country?

Both countries require consumer prices to include VAT. The legal basis and the enforcement differ.

The rule: ZATCA applies Article 25 of the GCC Unified VAT Agreement. The price announced in the local market must include VAT, so every price shown to the public is VAT-inclusive.

  • Enforcement: the Ministry of Commerce says the tag price is the final price. An invoice higher than the shown price is a commercial violation.
  • Online stores: Saudi e-commerce law also asks you to show the full total, with taxes and delivery, before payment.
  • VAT inside a price: 15/115 of the shelf price.

Not sure when you have to register in the first place? The Saudi VAT guide and UAE VAT guide cover thresholds and deadlines.

When can you show prices without VAT?

Only in the UAE, and only in two cases:

  • B2B sales to VAT-registered businesses. A trade portal can show ex-VAT prices with a clear "excl. VAT" label.
  • Exports. Goods sold for delivery outside the UAE can be priced ex-VAT, with the same clear label.

Saudi Arabia has no consumer exception, so if your store sells to the public, every price carries the 15%.

How do you set prices to include VAT in your store?

Every major Gulf platform has a "prices include tax" switch. Turn it on, enter your shelf prices with VAT included, and the platform splits the tax out on the invoice.

  • Go to Settings > Taxes and duties and tick All prices include tax.
  • Add your Saudi and UAE tax registrations so Shopify knows which rate to use.
  • Selling to both? In the same settings, turn on Include or exclude tax based on your customer's country, so Saudi prices carry 15% and UAE prices 5%.

Then add a short line near the price: "Prices include VAT" in English and "الأسعار شاملة الضريبة" in Arabic.

Still picking a platform? Compare them in Shopify vs Salla vs Zid.

A Saudi shopper checks a matching price on a product page and the checkout screen of her phone
The shelf price and the checkout total should match, before delivery.

How do noon and Amazon handle VAT?

On marketplaces, the price you enter is the shelf price, and it must include VAT just like your own store.

Two things follow from that:

  • Fees are charged on the VAT-inclusive price. Noon takes its referral fee on the VAT-inclusive selling price, and Amazon on the total sale price. Model fees on the shelf price, not the net price.
  • VAT is added to the marketplace's own fees. If you're VAT-registered, you reclaim it.

Run your numbers in the Amazon and noon fee calculator before you list.

Selling cross-border? Ship DDP

If you ship parcels from abroad, import VAT is due at the border. Saudi Arabia charges 15% VAT on every parcel, with no low-value exemption for tax.

So who pays it? With DDP (Delivered Duty Paid), you prepay duty and VAT, and the shopper pays nothing at the door. With DAP, the courier collects tax on delivery, so the shopper pays more than your shown price.

That breaks the "shown price is final" promise, and it drives refused parcels, especially on COD orders.

Here's the fix:

  • Build import VAT and duty into your shelf price.
  • Choose DDP with your courier or cross-border platform.
  • Say "duties and taxes included" on the product page.

Many freight forwarders offer DDP and handle customs clearance for you.

What does the invoice need to show?

The invoice should match the shelf price and show the VAT inside it. In Saudi Arabia, a simplified (B2C) tax invoice can show either the VAT amount or a statement that the price includes VAT.

The essentials:

  • Saudi Arabia: a ZATCA-compliant e-invoice (FATOORA) with a QR code, in Arabic.
  • UAE: an Arabic invoice, with English optional, showing your TRN (tax registration number).

The full rules are in our ZATCA e-invoicing guide.

Check your store before launch

Run through this list once per market, then again after any theme or app change:

VAT-inclusive pricing check
0%

Need to check the VAT inside one price right now? Try it here:

GCC VAT calculator

Add or extract VAT, then check whether you need to register

Country

Calculation

SAR

VAT rate 15%

Net

SAR 200.00

VAT

SAR 30.00

Gross

SAR 230.00

Net 87.0%VAT 13.0%

Do I need to register?

Compare your annual taxable sales with the registration thresholds · Saudi Arabia

Your business

SAR

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.

Notes for other GCC markets

  • Bahrain: 10% VAT, shown inside the price, in BHD with three decimals. Parcels under BHD 100 skip import VAT; above that, ship DDP.
  • Oman: 5% VAT, shown inside the price, in OMR with three decimals.
  • Kuwait and Qatar: no VAT, so the same product can carry a lower shelf price.

Every Gulf country's rate and registration threshold is in GCC VAT rates. Expanding across the Gulf? Our VAT and tax advisors can set up registrations country by country.

Frequently asked questions

It means the tax is already inside the number on the tag. A SAR 115 price in Saudi Arabia is SAR 100 for the product plus SAR 15 VAT. The shopper pays SAR 115 and nothing more for tax.

Sources & further reading

  1. Product price on the shelf includes VAT — Saudi Ministry of Commerce
  2. Guideline on Professional Services under VAT Provisions (VAT-inclusive prices, section 7) — Zakat, Tax and Customs Authority (ZATCA)
  3. VAT Implementing Regulations, Article 53 — ZATCA
  4. Federal Decree-Law No. 8 of 2017 on VAT — UAE Legislation
  5. VAT-inclusive displayed prices: rule, exceptions and implications — Habib Al Mulla & Partners
  6. How to set up VAT in your store — Salla Help Center

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
Maya

Maya is MiddleEastEcom's lead guide and editor. She researches GCC marketplaces, payments and regulations and turns them into practical playbooks for sellers.

Meet Maya