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Saudi Arabia Tax Information

15% VAT

VAT is 15%. E-invoicing (FATOORA) mandatory. Registration above SAR 375,000.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Saudi Arabia

VAT registration
CR number
Client VAT number
QR code
VAT (15%)

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

CashNet 30Net 60Net 90

Payment Methods in Saudi Arabia

Bank TransferSADADMadaCredit Card

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Saudi Arabia?

Saudi Arabia has 15% VAT. VAT is 15%. E-invoicing (FATOORA) mandatory. Registration above SAR 375,000.

What payment methods are common for contractors in Saudi Arabia?

Common payment methods in Saudi Arabia include: Bank Transfer, SADAD, Mada, Credit Card. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Saudi Arabia?

Your invoice should include: VAT registration, CR number, Client VAT number, QR code. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Saudi Arabia's VAT rate?

15% (increased from 5% in 2020).