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How is import VAT calculated in Saudi Arabia?

Import VAT is 15%, calculated on CIF value plus customs duty. Example: goods with CIF of $22,600 and 5% duty ($1,130) give a VAT base of $23,730 — VAT equals $3,559.50. VAT-registered businesses recover this as input tax on their next return, so it is a cash-flow cost, not a final one.

The unrecoverable part of the import bill is the duty itself. Both amounts are paid to ZATCA at clearance before the port releases the cargo.

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