How do you calculate VAT?
To add VAT: multiply the price by the VAT rate (e.g., 15% in Saudi Arabia) and add it. To extract VAT from an inclusive price: divide the total by (1 + rate) to get the base price — the difference is the VAT. A common mistake is taking 15% of the inclusive price directly, which overstates the tax.
VAT rates in Arab countries
Saudi Arabia 15% — Egypt 14% — UAE, Bahrain, and Oman 5%. Rates can change by official decree; the calculator supports any custom rate.