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Freelancer Tax

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When do you register for VAT? And how much to set aside per invoice?

Saudi Arabia has no personal income tax — but VAT registration is mandatory at 375k/year and voluntary from 187.5k. VAT is added to your client's invoice then remitted to the authority, so set it aside — don't spend it. Figures are official; details are guidelines — check your accountant and ZATCA.

Your revenue vs the registration thresholds300,000 SAR

Voluntary: 187,500 · Mandatory: 375,000

Your average monthly income

25,000 SAR

VAT on your invoices / year

45,000 SAR

Your revenue is in the voluntary registration band (187.5–375k). Registering now lets you deduct VAT on your purchases and readies you for mandatory. If you register, you add 45,000 SAR VAT to your invoices a year and remit it — it's not your income.
The link carries your numbers — anyone opening it sees the same calculation

What does this number mean?

Saudi Arabia has no personal income tax — but VAT has official registration thresholds: mandatory at 375k/year, voluntary from 187.5k. The common mistake: treating VAT as part of your income and spending it, when it's actually added to your client's invoice then remitted to the authority — so set it aside in a separate account. Figures are official, details are guidelines; check your accountant and ZATCA.