Standard-rated supplies
In one sentenceSales of goods and services subject to VAT at the standard rate of 15%, which is the default for most transactions within the Kingdom.
Simply put
Any sale within the Kingdom is taxed at 15% unless it falls under zero-rated or exempt supplies by a regulatory provision.
These sales are shown on a separate line in the VAT return along with the VAT charged on them.
Worked example
A furniture factory sold a bedroom set to a customer within the Kingdom for 8,000 SAR before VAT.
Value of supply8,000 SAR
VAT 15%8,000 × 15% = 1,200 SAR
Invoice total9,200 SAR
Formula: VAT = value of supply × 15%
Don't confuse it with
Zero-rated suppliesZero-rated supplies are taxable but at 0%, while standard-rated supplies are at 15%.