What is VAT?
Value Added Tax (VAT) is an indirect tax charged on most goods and services at each stage of sale. The final consumer ultimately pays it, while businesses collect it and pay it over to the tax authority.
Standard VAT rates in Arab countries
| Country | Standard rate |
|---|---|
| Saudi Arabia | 15% |
| UAE | 5% |
| Oman | 5% |
| Bahrain | 10% |
| Egypt | 14% |
| Jordan | 16% (general sales tax) |
| Lebanon | 11% |
| Morocco | 20% |
| Algeria | 19% |
| Tunisia | 19% |
| Qatar and Kuwait | Not yet applied |
Last reviewed: September 2026. Qatar and Kuwait had not introduced VAT as of that date; both are expected to start at 5% under the unified GCC VAT agreement. In Lebanon, the government approved a proposal in February 2026 to raise VAT to 12%, which still needs parliamentary approval. If it takes effect, choose “Custom rate” and enter 12.
Adding vs removing VAT
- Add VAT: you have a net price (before tax) and want the final price the customer pays. Total = net × (1 + rate).
- Remove VAT: you have a VAT-inclusive price, for example from a receipt, and want to know how much of it is tax. Net = total ÷ (1 + rate). Note that this is not the same as subtracting 15% from the total.
Frequently Asked Questions
Why isn’t removing 15% VAT the same as taking 15% off the total?
Because the 15% was calculated on the net price, not on the total. For example, 100 + 15% = 115. Taking 15% off 115 gives 97.75, which is wrong. The correct way is 115 ÷ 1.15 = 100, so the VAT included is 15.
Are all goods taxed at the same rate?
No. Some essential goods and services (such as certain foods, healthcare or education) may be exempt or zero-rated in many countries, while everything else is taxed at the standard rate.
Are these rates always up to date?
We last reviewed them in September 2026 and update them when changes are announced, but tax laws can change at any time. If your country’s rate is different, choose “Custom rate” and enter it yourself. For official invoices, confirm the current rate with your tax authority.