Revenue
In one sentenceWhat the business earns from its normal activities, such as selling goods or providing services; it is recognized when the business performs what it agreed with the customer.
Simply put
Revenue is the price of what you sold or provided, excluding VAT, because the tax is collected on behalf of ZATCA and is not income of the business.
It is recognized when you fulfill your obligation to the customer (delivering the goods or performing the service) under IFRS 15, not when you receive the money. It increases with a credit.
Worked example
A spare parts store sold goods for cash for a tax-inclusive amount of 23,000 SAR.
Amount received including VAT23,000 SAR
Output VAT (23,000 × 15 ÷ 115)3,000 SAR
Revenue (23,000 − 3,000)20,000 SAR
Formula: Revenue = Inclusive amount − (Inclusive amount × 15 ÷ 115)
Don't confuse it with
Deferred revenueAn amount received before the service is provided; it is a liability, not revenue, until performance.