Saudi customs duty and VAT on imports: how to calculate

How is the customs value of your shipment determined?

The customs value is the basis on which duty and tax are calculated. The primary rule for determining it is the "transaction value": the price actually paid or payable for the goods when sold for export to the Gulf Cooperation Council (GCC) states, adjusted by the additions and deductions set out in the regulations. Saudi Arabia applies the GCC Common Customs Law and its Implementing Regulations. The Zakat, Tax and Customs Authority (ZATCA) describes these rules as consistent with the WTO Customs Valuation Agreement and Article VII of GATT 1994. Saudi Arabia's Trade Policy Review at the World Trade Organization confirms that the transaction values used are CIF values.

In practice, the transaction value on the customs declaration has three elements: the value of the goods, the cost of transporting them to the port or place of import, and insurance up to arrival. If the invoice is based on a sales term that excludes freight and insurance (such as FOB), you must add them when you declare. If the invoice already includes them (CIF), do not add them a second time.

Values in foreign currencies are converted to Saudi riyals at the exchange rate announced by the Saudi Central Bank (SAMA) at the time duty is paid, according to ZATCA's page on valuation principles.

What is added to the invoice price, and what is not?

Anything the buyer pays for the goods that is not already in the price is added to the invoice price, except for specific items excluded by the regulations. The table below summarizes the main items as presented on ZATCA's page on customs valuation principles and in its VAT guideline on imports and exports.

If the transaction value cannot be used, customs moves, in order, to the value of identical goods, then the deductive value, then the computed value, then the fall-back method. The regulations do not allow "minimum values" for customs valuation. You have the right to appeal a valuation without a penalty, first to the customs director, then to the value adjudication committee, then to the Board of Grievances. You can have the goods released by providing a guarantee until the appeal is decided.

What is the customs duty rate on imports?

Saudi Arabia applies the GCC Common Customs Tariff. The duty rate is set separately for each tariff line, so no single rate applies to everything. According to the WTO review of 2020 data, a rate of 5% of value applied to about 77% of tariff lines, 10.6% of lines were duty-free, and the rest carried higher rates. Treat 5% as the most common rate, not as a general rule, and check the line for your goods.

Under the Common Customs Law, duties may be ad valorem (a percentage of value), specific (a fixed amount per unit), or both. You need to know four things before relying on any rate:

• Classification: The rate is tied to the 12-digit Harmonized System (HS) code in the Integrated Tariff, which the GCC began applying at this level on 1 January 2025. Our article on customs classification and the tariff explains how to choose the code.
• Exemptions: The Common Customs Law provides for exemptions, including diplomatic and military exemptions and returned goods. Each case is assessed against its own conditions.
• Within the GCC: Under the single point of entry principle, duty is collected at the first point of entry into GCC territory, and anti-dumping or countervailing duties are not imposed on intra-GCC trade, according to the same WTO review.
• Special duties: Additional measures, such as anti-dumping or safeguard duties, may apply to specific goods. They are adopted at GCC level for particular products and countries. Check the measures in force for your product with your customs broker before shipping.

To look up the duty for a specific tariff line, use ZATCA's Integrated Customs Tariff Inquiry service. It is free and lets you search by keyword or HS code, or browse by section and chapter.

How is VAT on imports calculated?

VAT on imports is 15% and applies to all goods imported into Saudi Arabia, even if they are exempt from customs duty or subject to a 0% duty rate. According to ZATCA's guideline, based on the GCC Common VAT Agreement, the taxable base is the customs value plus excise tax, customs duty and any other charges, excluding the VAT itself.

In other words, VAT is also charged on the duties, not only on the value of the goods:

1. Customs value (CIF) = value of goods + freight + insurance.
2. Customs duty = customs value × tariff line rate.
3. VAT base = customs value + customs duty + excise tax (if any) + incidental charges collected by ZATCA.
4. VAT = 15% × VAT base.

Excise tax applies to specific goods. Those listed by ZATCA include carbonated drinks and sweetened drinks (50%), energy drinks (100%), tobacco, and electronic smoking products and their liquids. Check the current list on ZATCA's website.

VAT exemption on import is limited. It covers goods whose final supply is exempt or zero-rated (such as qualifying medicines and medical equipment), diplomatic and military exemptions, returned goods, and travelers' personal belongings worth no more than SAR 3,000. ZATCA states that goods exempt from customs duty or at a 0% rate are generally subject to VAT on import. VAT registration for businesses and recovery of import VAT are covered in our article on VAT for importers.

What other charges appear on the customs declaration?

In addition to customs duty and VAT, the declaration includes a fee for the customs declaration processing service, collected by ZATCA. Under the Fees Rules on Customs Services, issued by decision of ZATCA's Board of Directors on 27 April 2024, the fee is 0.15% of the value of the goods for customs purposes per declaration, with a minimum of SAR 15 and a maximum of SAR 500. The maximum is only SAR 130 if the declaration covers only imports of VAT-exempt goods. For a consolidated declaration, the fee applies to each bill of lading separately.

The declaration also includes amounts ZATCA collects on behalf of transport and storage providers, such as transport and storage charges. These are included in the VAT base, according to ZATCA's guideline. Clearance fees, inland freight charges and port delay penalties vary by case and are not covered in this article. See why shipments are delayed at the port.

Worked example: calculate duty and VAT step by step

The example below uses hypothetical figures only to show the sequence. It does not represent real goods or a real duty rate. We assume the shipment's tariff line has a 5% rate, there is no excise tax, and the invoice is on an FOB basis.

Note that the VAT here is SAR 17,167.50, not the SAR 16,350 you would get by calculating it on the CIF value alone. The difference of SAR 817.50 comes from including customs duty in the base. Note also that the example excludes the declaration processing fee (0.15% × 109,000 = SAR 163.50, which falls within the minimum and maximum) and transport and storage charges. These are added to the cost and included in the VAT base, according to ZATCA's guideline. If your business is VAT-registered, you may be able to recover import VAT under the applicable rules, so do not treat it as a final cost before reviewing your position.

Common mistakes when calculating duty and VAT

Most financial discrepancies in importing come from incorrect entries on the customs declaration, not from arithmetic errors. The main ones are:

• Using the invoice value instead of CIF: If the sale is FOB or EXW, you need to add transport, insurance and handling up to the place of import. Otherwise the difference will surface later during audit.
• Forgetting freight or insurance: This often happens when buying from several suppliers, or when the freight invoice arrives separately from the goods invoice.
• An incorrect HS code: It changes the duty rate and may trigger other conditions and controls. Use an accurate description of the goods and check the line in the Integrated Tariff.
• Ignoring additions not shown on the invoice: For example, royalties related to the goods, or molds you supplied to the manufacturer.
• Assuming a duty exemption is a VAT exemption: In most cases, VAT at 15% applies even when the duty rate is 0%.
• Finding an error after payment: ZATCA asks to be notified before payment if you notice an error in classification or value. Corrections after clearance is completed are made through a "payment order" covering the additional amounts. Overpaid VAT is not refunded; it is deducted in the VAT return under the applicable rules.

How do you use this site's calculator, and what determines the final amount?

The duty and VAT calculator on this site estimates amounts with three formulas: duty = CIF value × duty rate; VAT = VAT rate × (CIF + duty); then the total. Enter the full CIF value, including freight and insurance, and the duty rate for your tariff line. You will get close figures to help with pricing and cash planning.

The actual amounts are set only by the customs declaration submitted through the FASAH platform, based on the classification and value accepted by customs. ZATCA calculates them automatically, and they also include the processing fee, other charges and excise tax where applicable. ZATCA also offers its own calculator among its e-services, which asks for the type of goods and their total value. Always treat the results of any calculator as estimates.

To prepare your shipment file before it arrives, see documents required for import and export. If you want the value and tariff line reviewed before the declaration is submitted, you can work with a licensed customs broker through our contact page.

Frequently asked questions