Commercial Rent VAT Calculator

The Amlakire team reviewed this page’s figures against official sources on 2026-10-01

Quick answer

VAT on commercial rent in Saudi Arabia is 15%, added to the rent when the lessor is VAT-registered; leasing a residence is exempt (except hotels, serviced apartments and temporary accommodation). Example: a shop let for SAR 60,000 a year → VAT SAR 9,000, total SAR 69,000. To extract VAT from an inclusive amount, divide it by 1.15 to get the rent; the difference is the VAT.

Calculator

The amount entered is

Amount (SAR)Lessor is VAT-registered

Result

Rent before VAT: 60,000.00 SAR
VAT (15%): 9,000.00 SAR
Total incl. VAT: 69,000.00 SAR

Estimates for guidance only; the governing regulations and official bodies are the final reference.

How it is calculated

VAT = rent × 15%
Total = rent × 1.15
From an inclusive amount: rent = amount ÷ 1.15, VAT = amount − rent

When is VAT added?

Only a VAT-registered lessor charges VAT; registration is mandatory above SAR 375,000 of annual taxable supplies and voluntary once supplies or expenses reach SAR 187,500.
Leasing a residence is exempt (Article 30 of the Implementing Regulations); hotels, serviced apartments and temporary accommodation are not exempt and carry 15%.
Exempt residential rent does not count towards the registration threshold.
State in the lease, in writing, whether the rent includes or excludes VAT to avoid disputes.

FAQ

Is VAT charged on residential rent?

No. Leasing a residence is exempt under Article 30 of the VAT Implementing Regulations; hotels, serviced apartments and temporary accommodation are excluded from the exemption.

Does every commercial lessor add 15% VAT?

No, only a VAT-registered lessor; registration is mandatory when annual taxable supplies exceed SAR 375,000.

How do I extract VAT from an inclusive amount?

Divide the amount by 1.15 to get the rent before VAT; the difference is the VAT. Example: 69,000 ÷ 1.15 = SAR 60,000, so VAT is SAR 9,000.

Official sources

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