Tool A · Quick calculator
Add or extract VAT
Net (excl. VAT)–
VAT at 15%–
Gross (incl. VAT)–
Project 03 · Tax & fixed assets
Saudi VAT & depreciation toolkit
Two working tools on one page: a 15% KSA VAT calculator with a ZATCA-style VAT return built from editable invoice lines, and an IAS 16 depreciation schedule with time apportionment, a declining-balance switch, a chart and the journal entry.
The toolkit
Tool A · VAT return builder
Invoice lines
Crescent Supplies Co. Q3 2026 (July to September)
Edit any party, category or amount, add lines, or delete them. Amounts exclude VAT; enter a credit note as a negative amount, for example -1,500.
Sales · output VAT
Purchases · input VAT
Live preview
VAT return, simplified
| Box | Amount (SAR) | Adjustment (SAR) | VAT amount (SAR) |
|---|---|---|---|
| VAT on sales | |||
| Standard rated sales | |||
| Zero-rated domestic sales | |||
| Exports | |||
| Exempt sales | |||
| Total sales | |||
| VAT on purchases | |||
| Standard rated domestic purchases | |||
| Imports subject to VAT paid at customs | |||
| Zero-rated purchases | |||
| Exempt purchases | |||
| Total purchases | |||
| Total VAT due for the current period | |||
- Output VAT (total sales)
- Less: recoverable input VAT (total purchases)
- Net VAT for the period
A simplified illustration of the ZATCA VAT return layout, not tax advice. Reverse-charge imports, the citizens' private healthcare and education box, prior-period corrections and credit carried forward are left out, and all input VAT is treated as fully recoverable.
Tool B · Fixed asset
Asset details
Fix the highlighted fields to update the schedule. The figures below are from the last valid inputs.
Depreciable amount (SAR)–
First-year charge (SAR)–
Annual rate–
Final NBV (SAR)–
Net book value
NBV over the useful life
Schedule
Year-by-year depreciation
| Financial year | Period | Opening NBV | Depreciation | Accumulated depreciation | Closing NBV | Basis |
|---|---|---|---|---|---|---|
| Total depreciation | ||||||
General ledger
Annual journal entry
| Account | Debit (SAR) | Credit (SAR) |
|---|---|---|
| Dr Depreciation expenseProfit or loss | – | |
| Cr Accumulated depreciationContra-asset, statement of financial position | – | |
| Totals |
How it works
The accounting behind the numbers
Every amount is held in halalas and rounded half-up to two decimals, so each total ties out to the last halala. These are the rules both tools apply.
VAT-exclusive and VAT-inclusive amounts
From a net price, VAT is 15% of net. From a gross price, net is gross divided by 1.15 and VAT is the difference, which equals 15/115 of gross. Deriving VAT as the difference guarantees net + VAT = gross after rounding.
VAT = Net × 15%
Gross = Net + VAT
Net = Gross ÷ 1.15
VAT = Gross − Net = Gross × 15/115
Mapping invoices to return boxes
Each line goes to one box by its VAT treatment. Standard-rated sales and purchases, and imports cleared at customs, carry 15% VAT. Zero-rated supplies and exports are taxable at 0%, while exempt supplies carry no VAT and the input VAT linked to them is normally not recoverable (this demo treats all input VAT as recoverable). VAT is calculated per invoice, and credit notes go to the Adjustment column and reverse their VAT.
Box VAT = Σ invoice VAT (rounded per invoice)
Box total = Amount + Adjustment
Net VAT position
Output VAT on sales less recoverable input VAT on purchases gives the VAT due for the period. A positive result is payable to ZATCA; a negative result is a refundable credit. Quarterly filers (taxable supplies up to SAR 40 million a year) file by the last day of the month after the quarter.
VAT due = Output VAT − Input VAT
> 0 payable · < 0 refundable
Straight-line and time apportionment
Under IAS 16 the depreciable amount (cost less residual value) is allocated over the useful life, starting when the asset is available for use (IAS 16.55). An asset ready in April is charged 9 of 12 months in year one, and its life ends with a final partial year of 3 months.
Annual charge = (Cost − Residual) ÷ Life
Year 1 = Annual charge × (13 − start month) ÷ 12
Declining balance with a straight-line switch
The double-declining rate (2 ÷ life) applies to the opening net book value. Each year the tool also spreads the remaining depreciable amount evenly over the remaining life, and switches to straight-line as soon as that gives the higher charge. This guarantees the asset is depreciated down to its residual value by the end of its useful life. Declining balance needs a useful life of 3 years or more: at 1 or 2 years the rate is 100% or higher and would write the asset off before its life ends.
DB = Opening NBV × (2 ÷ Life) × Months ÷ 12
SL = (Opening NBV − Residual) × Months ÷ Remaining months
Charge = max(DB, SL), switching once SL is higher
Residual floor, rounding and the entry
A charge never takes net book value below the residual value; once they are equal, depreciation is zero (IAS 16.54). Charges are rounded to the halala and the final period absorbs any rounding, so closing NBV equals the residual value exactly. Each year is posted with one entry.
Closing NBV = Opening NBV − Charge ≥ Residual
Dr Depreciation expense / Cr Accumulated depreciation
In practice
Where I apply this
The tool runs on fictional data. The methods are the ones I apply in practice.
Saudi VAT and IFRS compliance
Handled Saudi VAT (ZATCA) and IFRS compliance for 5+ Saudi client companies.
Fixed asset register and depreciation
Maintain the fixed asset register and depreciation schedules within a general ledger that spans 7 countries.
Month-end close
Run the month-end close and GL reconciliations for the same 7-country general ledger.