- [AhlaCode](https://ahlacode.com/en/)
- [Guides](https://ahlacode.com/en/guides/)
- VAT in the Gulf: rates and what they mean for online prices

Guide
# VAT in the Gulf: rates and what they mean for online prices

Written by [Yousef Alrifai](https://ahlacode.com/en/editors/yousef/) · updated 17 Oct 2026

Four Gulf states charge VAT: Saudi Arabia at 15%, Bahrain at 10%, and the UAE and Oman at 5% each. Qatar and Kuwait had not introduced VAT as of October 2026, and we found no official start date. In Saudi Arabia and the UAE the consumer price you see already includes VAT, and when a discount code is applied, VAT is calculated on the amount after the discount.

## VAT rates in the six countries

VAT differs clearly across the Gulf, so the same product can end up at a different final price in each country even when the pre-tax price is identical. The table below summarises what we found in official sources as of 17 October 2026.

| Country | Standard rate | Since | Authority |
| --- | --- | --- | --- |

| Saudi Arabia | 15% | 1 July 2020 (5% from January 2018) | Zakat, Tax and Customs Authority (ZATCA) |

| UAE | 5% | Federal Decree-Law No. 8 of 2017 | Federal Tax Authority (FTA) |

| Bahrain | 10% | 1 January 2022 | National Bureau for Revenue (NBR) |

| Oman | 5% | April 2021 (Royal Decree 121/2020) | Tax Authority |

| Qatar | No VAT in force | No official date announced | General Tax Authority |

| Kuwait | No VAT in force | No official date announced | Ministry of Finance |

In Saudi Arabia the authority announced the increase from 5% to 15% from 1 July 2020 and issued transitional rules for contracts signed earlier. Bahrain's national portal states that the 10% standard rate has applied since 1 January 2022 and that the NBR implements and collects it. Oman's Tax Authority lists a 5% basic rate on most goods and services under Royal Decree 121/2020, which entered into force 180 days after publication.

Each country also has zero-rated and exempt supplies, such as some financial services and residential rent in Oman. These rarely affect everyday shopping like fashion or electronics, but check your tax authority's list if you are buying food or medical items.

## Qatar and Kuwait: the position as of October 2026

As of this guide's date, neither Qatar nor Kuwait applies VAT. We could not find an official decision on the websites of Qatar's General Tax Authority or Kuwait's Ministry of Finance that sets a start date or an approved rate. Media and advisory firms publish differing forecasts on timing, but these are forecasts, not decisions.

What this means in practice:

- Prices in local stores in Qatar and Kuwait do not include VAT, so there is normally no separate tax line on the invoice.

- If an online store shows a "tax" line on an order shipped to Qatar or Kuwait, it is likely customs duty or a clearance fee on an international shipment, not VAT. Read the line description before paying.

- Be wary of any message asking you to pay a "VAT registration fee" in these two countries; there is no VAT system in force.

We will update this guide as soon as either country issues an official decision.

## What "inclusive of VAT" means at checkout

"Inclusive of VAT" means the displayed price is what you will actually pay before shipping or cash-on-delivery fees, with the tax already built in. "Exclusive of VAT" means tax is added on top at checkout.

In the UAE, Article 38 of Federal Decree-Law No. 8 of 2017 requires the advertised price of a taxable supply to include VAT. Cabinet Decision No. 52 of 2017 allows tax-exclusive prices only for exports or where the customer is a VAT registrant, and the price must be clearly labelled. Failing to display tax-inclusive prices is a violation that carries an administrative penalty, and the FTA runs field inspections that check for tax-inclusive price display.

In Saudi Arabia, ZATCA guidance says businesses should be able to calculate and display VAT-inclusive prices at the point of sale, and a tax invoice should show any discount applied.

In Bahrain and Oman we could not confirm an official text that specifically requires online stores to display VAT-inclusive prices, so check the checkout page for a VAT line or an "inclusive of VAT" note.

How to find the VAT inside an inclusive price:

- Saudi Arabia (15%): VAT = inclusive price × 15 ÷ 115. Example: SAR 1,150 contains SAR 150 VAT.

- UAE (5%): VAT = inclusive price ÷ 21, as the FTA explains. Example: AED 210 contains AED 10 VAT.

- Oman (5%): taxable value = 100/105 of the inclusive price, per the Tax Authority.

- Bahrain (10%): VAT = inclusive price × 10 ÷ 110 (simple arithmetic from the rate).

## Do discount codes apply before or after VAT?

This is the most common question about discount codes. In Saudi Arabia, ZATCA's guideline on business promotions is clear: VAT is calculated on the amount you actually pay after the discount.

ZATCA's own example: a shirt priced at SAR 250 including VAT is sold at a discount for SAR 200. The VAT due is 15/115 of SAR 200, which is SAR 26.08, not 15/115 of the original price.

What this means at checkout:

- If prices are shown VAT-inclusive and your code is 20% off, you pay 80% of the inclusive price, and the VAT is part of that reduced amount. No new VAT is added on top after the discount.

- If a store shows prices exclusive of VAT and adds tax at checkout, the usual order is price, then discount, then VAT on the net amount. For a percentage discount the result is the same either way.

- The difference shows with a fixed-amount discount (for example "SAR 50 off"). Taken off the inclusive price, you save exactly SAR 50. Taken off the pre-tax price, you save SAR 57.50 in total because VAT is charged on a smaller base. Check the order summary to see which method the store uses.

The same general rule applies in the UAE: consumer prices are VAT-inclusive, and a discount reduces the amount VAT is calculated on. We could not find a published UAE guide that covers discount codes in the same detail as the Saudi guideline.

Whether a code also applies to shipping or cash-on-delivery fees varies by store; many codes apply to the product value only.

## "We pay the VAT" offers and free gifts

Some stores use phrases like "we pay the VAT" or "VAT-free" during sale seasons such as White Friday, expected in November 2026. ZATCA's guidance explains that this is promotional wording only: if the item is subject to the 15% standard rate, the sale remains taxable however the offer is worded.

In practice, the offer means the store has cut the inclusive price by roughly the VAT amount. It is an ordinary discount:

- A product priced at SAR 115 inclusive becomes SAR 100 under a "we pay the VAT" offer. That is about a 13% discount, not 15%, because the 15% is calculated on the pre-tax price.

- The invoice will still show VAT calculated on SAR 100 (about SAR 13.04), which is normal.

Compared with a 15% discount code applied to the inclusive price, the code usually saves slightly more. Work out the final price at checkout rather than relying on the offer's name.

## Orders from abroad: import VAT

When you buy from a store that ships to you from outside the GCC, import VAT may be due in addition to customs duty. ZATCA explains that personal goods are not exempt from VAT except as the VAT law provides, and that VAT is calculated on all amounts in the customs declaration, including customs duty.

Some international stores collect these amounts upfront at checkout, while others leave it to the courier to collect on delivery. Our guide to customs on orders from abroad covers thresholds and exemptions for each country.

## Quick checklist before you pay

- Look for "inclusive of VAT" or a VAT line in the order summary.

- Check that the discount appears before VAT is calculated, or within the inclusive price, and not with new VAT added on top.

- Check shipping and cash-on-delivery fees; they are often outside a discount code's scope.

- For a foreign store, check whether checkout includes duty and VAT or whether they will be collected on delivery.

- Keep the tax invoice. It is your reference for returns or complaints, and it should show any discount applied.

## Questions shoppers ask

**What is the VAT rate in Saudi Arabia?**

15% since 1 July 2020. It was 5% from its introduction in January 2018.

**Is there VAT in Qatar or Kuwait?**

No. As of October 2026 neither country applies VAT, and we found no official start date.

**Is a code deducted before or after VAT?**

In Saudi Arabia, VAT is calculated on the amount paid after the discount, per ZATCA guidance. For percentage discounts the result is the same; for fixed-amount discounts, check the order summary to see the store's method.

**Does "we pay the VAT" mean the product is VAT-exempt?**

No. The sale remains taxable; the offer is effectively a discount roughly equal to the VAT amount.

**Can a UAE store show prices excluding VAT?**

Not to individual consumers, except in specific cases such as exports or where the customer is a VAT registrant, and the price must be labelled.

## Sources

- [zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/News-342.aspx)
- [zatca.gov.sa](https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/VAT15.pdf)
- [zatca.gov.sa](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Business%20promotions.pdf)
- [zatca.gov.sa](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-for-Tax-Invoicing-and-Records-under-VAT-Provisions.pdf)
- [zatca.gov.sa](https://zatca.gov.sa/en/RulesRegulations/VAT/Pages/Business_Large.aspx)
- [sp.spa.gov.sa](https://sp.spa.gov.sa/viewfullstory.php?lang=en&newsid=2085204)
- [tax.gov.ae](https://tax.gov.ae/en/taxes/vat.aspx)
- [tax.gov.ae](https://tax.gov.ae/DataFolder/Files/Pdf/VAT-Decree-Law-No-8-of-2017.pdf)
- [tax.gov.ae](https://tax.gov.ae/-/media/Files/FTA/links/Legislation/VAT/03-Cabinet-Decision-52-of-2017.pdf)
- [tax.gov.ae](https://tax.gov.ae/DataFolder/Files/Guides/VAT/Awareness/Get%20to%20know%20your%20Tax%20Obligations.pdf)
- [tax.gov.ae](https://tax.gov.ae/en/media.centre/news/H1.2024.inspection.campaigns.aspx)
- [bahrain.bh](https://www.bahrain.bh/wps/portal/en/!ut/p/z0/fYw9E8FAEIb_yjaZobrDEK2PIhQoucZs3GIl2YvcJsO_F4VW-T7vM49x5micYMc3VA6CZb9PbnYebaY2m6-szXaHtZ3ts3k6TpcTO07N1rj_Ql_gx_PpFsZdgii91Bxzqc8kiX2HtoGSrwQskOO9Qe5p3kYWihFQfH90FLUi0cQ2VKKSBw01X2JiOyxbAvT-y_AFgw51-E3pnaBguflQQbj-yqYu3OkDDs8R_Q!!/)
- [tms.taxoman.gov.om](https://tms.taxoman.gov.om/portal/tax-rate)
- [tms.taxoman.gov.om](https://tms.taxoman.gov.om/portal/vat-faqs)
- [omannews.gov.om](https://omannews.gov.om/NewsDescription/ArtMID/392/ArticleID/21451/Sabaq)
- [zatca.gov.sa](https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/%D8%A7%D9%84%D9%88%D8%A7%D8%B1%D8%AF%D8%A7%D8%AA%20%D9%88%D8%A7%D9%84%D8%B5%D8%A7%D8%AF%D8%B1%D8%A7%D8%AA.pdf)

Yousef Alrifai
Covers marketplaces, electronics, home and travel, and compares delivery and return terms across the six countries. [Profile](https://ahlacode.com/en/editors/yousef/) · [How we confirm codes](https://ahlacode.com/en/method/)

## More guides

- [Why a promo code fails: the real reasons and a checklist](https://ahlacode.com/en/guides/why-codes-fail/)
- [Cashback vs instant discount: when credit lands and expires](https://ahlacode.com/en/guides/cashback-vs-instant/)
- [Customs on online orders from abroad in the Gulf: limits and fees](https://ahlacode.com/en/guides/customs-gulf/)
- [Online return and refund rights in the six Gulf countries](https://ahlacode.com/en/guides/returns-rights-gulf/)
- [Cash on delivery in the Gulf: fees, limits and alternatives](https://ahlacode.com/en/guides/cod-gulf/)
- [Tabby and Tamara in the Gulf: Instalments, Fees, Promo Codes](https://ahlacode.com/en/guides/tabby-tamara-gulf/)
- [Delivery Memberships in the Gulf: noon One, Prime, talabat pro](https://ahlacode.com/en/guides/delivery-memberships-gulf/)
- [Bank Card Offers and Shopping Codes in the Gulf: How They Work](https://ahlacode.com/en/guides/bank-card-offers/)
- [Fake promo codes and voucher scams: how to spot them first](https://ahlacode.com/en/guides/fake-codes/)
- [White Friday 2026 in the Gulf: Expected Dates and How to Prepare](https://ahlacode.com/en/guides/white-friday-2026/)
- [Ramadan 2027 shopping: expected dates, sales and Eid cut-offs](https://ahlacode.com/en/guides/ramadan-2027-shopping/)

Source: https://ahlacode.com/en/guides/vat-gulf/