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Saudi Arabia Tax Information

15% VAT

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

Freelancer Services to Invoice

  • Hourly consulting
  • Project-based work
  • Retainer agreements
  • Milestone billing
  • Rush/priority fees

Invoice Requirements in Saudi Arabia

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

Payment Terms

Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

CashNet 30Net 60Net 90

Payment Methods in Saudi Arabia

Bank TransferSADADMadaCredit Card

Freelancer Invoice Tips

  • Always use a unique invoice number
  • Clearly state payment terms upfront
  • Include detailed breakdown of work
  • Add late payment fees
  • Keep copies for tax purposes

Frequently Asked Questions

What tax rate applies to freelancer 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 freelancers in Saudi Arabia?

Common payment methods in Saudi Arabia include: Bank Transfer, SADAD, Mada, Credit Card. Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

What should freelancer invoices include in Saudi Arabia?

Your invoice should include: VAT registration, CR number, Client VAT number, QR code. For freelancer services specifically, also include: Hourly consulting, Project-based work, Retainer agreements.

How do I invoice for hourly freelance work?

List each task with hours worked and hourly rate. Include dates and detailed descriptions.

Should I charge a deposit as a freelancer?

Yes, especially for larger projects. A 25-50% deposit protects you from non-payment.

What is Saudi Arabia's VAT rate?

15% (increased from 5% in 2020).