How to Calculate Duties and Taxes on Imports to Saudi Arabia is a critical step for international trade compliance. Import duties and taxes are determined by the product's classification (using a 12-digit HS Code), its customs value, and its country of origin. The Zakat, Tax and Customs Authority (ZATCA) oversees this process. While a generous duty de minimis threshold of SAR 1,000 applies to customs duties, the standard 15% Value Added Tax (VAT) is generally applied to all commercial imports valued at SAR 1 or more, meaning there is effectively no VAT de minimis for commercial shipments.
Customs duties in Saudi Arabia are levied based on the Common Customs Law of the Gulf Cooperation Council (GCC) States. The applicable rate is determined by the product's 12-digit import classification code, which is an extension of the international Harmonized System (HS) code. Rates vary widely, from 0% for many essential goods and GCC-origin products, to higher rates for protected industries or specific items. The duty is calculated Ad Valorem, meaning ‘according to value,’ on the Customs Value of the imported goods. For low-value shipments, the duty de minimis threshold of SAR 1,000 allows goods below this value to enter duty-free, simplifying the process for small e-commerce parcels.
To accurately calculate import tax in Saudi Arabia and estimate your total landed cost, you must first establish the Customs Value. Saudi Arabia adheres to the WTO Customs Valuation Agreement, using the Cost, Insurance, and Freight (CIF) method as the primary basis for valuation. This means the dutiable value includes the cost of the goods, the cost of shipping (freight), and the cost of insurance up to the first port of entry in Saudi Arabia.
The calculation of duties and taxes involves three main components: Customs Duty, Value Added Tax (VAT), and in some cases, Selective Tax (Excise Tax). The standard VAT rate is 15% and is applied to the total value of the shipment, which is the Customs Value (CIF) plus the Customs Duty. This is a crucial point for anyone using an import tax calculator Saudi Arabia, as the VAT is calculated on the duty-paid value.
For the query “how import duty is calculated in Saudi Arabia,” the process begins with correct classification using the 12-digit import tariff code. This code dictates the specific duty rate. If the goods are of GCC origin and meet the rules of origin, they are exempt from customs duty entirely. If the goods are subject to Selective Tax (e.g., tobacco, energy drinks), this tax is applied before the VAT calculation.
All commercial importers must use the FASAH platform, the national Single Window, to submit their electronic customs declaration and complete clearance procedures. This digital system is essential for ensuring compliance and efficient processing of all import shipments.
Determine the Customs Value (CIF): Calculate the total value of the goods, plus the cost of international freight and insurance up to the Saudi port of entry. This is the basis for all subsequent calculations.
Calculate Customs Duty: Apply the specific duty rate (determined by the 12-digit HS Code) to the Customs Value (CIF). If the CIF value is SAR 1,000 or less, the duty is 0% (Duty De Minimis applies).
Calculate Selective Tax (if applicable): If the goods are subject to Excise Tax (e.g., soft drinks, tobacco), apply the relevant rate to the Customs Value (CIF).
Calculate Value Added Tax (VAT): Apply the 15% VAT rate to the total of (Customs Value + Customs Duty + Selective Tax). This final figure represents the total import tax in Saudi Arabia.
Low-Value Shipment (CIF SAR 500, Duty Rate 5%): Customs Duty is SAR 0 (below SAR 1,000 de minimis). VAT is 15% of SAR 500 = SAR 75. Total Import Charges: SAR 75.
Standard Shipment (CIF SAR 5,000, Duty Rate 5%): Customs Duty is 5% of SAR 5,000 = SAR 250. VAT is 15% of (SAR 5,000 + SAR 250) = SAR 787.50. Total Import Charges: SAR 1,037.50.
GCC Origin Shipment (CIF SAR 5,000, Duty Rate 5%): Customs Duty is 0% (due to GCC exemption). VAT is 15% of SAR 5,000 = SAR 750. Total Import Charges: SAR 750.
Misclassifying the Product: Using an incorrect 12-digit import tariff code will lead to incorrect customs duties in Saudi Arabia and potential penalties from ZATCA.
Ignoring the CIF Valuation: Failing to include freight and insurance costs in the declared value will result in customs re-assessment and delays, as the valuation basis is CIF.
Assuming a VAT De Minimis: VAT at 15% applies to virtually all commercial imports, even those below the SAR 1,000 duty-free threshold.
Saudi Arabia operates under the GCC Common Customs Law, which provides duty-free entry for goods of GCC origin. Furthermore, the Zakat, Tax and Customs Authority (ZATCA) has introduced zero-rated VAT provisions for transactions within or between Special Economic Zones (SEZs) to promote investment. For e-commerce, ZATCA is implementing new rules, effective January 1, 2026, that will treat electronic marketplaces as the ‘deemed supplier’ for VAT purposes on sales by non-resident or unregistered sellers, shifting the compliance burden to the platform.
The calculation is based on the Customs Value (CIF), the 12-digit HS Code, the 15% VAT rate, and any applicable Selective Tax. The formula is: (CIF Value + Customs Duty + Selective Tax) x 15% VAT.
For commercial imports, there is effectively no VAT de minimis threshold. While the customs duty de minimis is SAR 1,000, the standard 15% VAT is applied to almost all commercial goods imported into the Kingdom, regardless of value.
FASAH is the national Single Window platform used by importers to submit electronic customs declarations, required documents (like the commercial invoice and certificate of origin), and complete the clearance process with ZATCA.
Saudi Arabia uses an extended 12-digit import classification code, which is based on the international Harmonized System (HS) code, for precise tariff and duty determination.