How to Calculate Customs Duties in Saudi Arabia
A comprehensive guide to customs duties in Saudi Arabia — 5% customs + 15% VAT + special fees. Examples for every type of goods.
How to Calculate Customs Duties in Saudi Arabia
Saudi customs duties may seem complex, but the formula is actually simple. This guide walks you through it step by step with real examples.
The Basic Formula
Customs Duty = CIF Value × 5%
VAT = (CIF + Duty) × 15%
Total to government = CIF × 1.2075
What is CIF Value?
CIF = Cost + Insurance + Freight
| Item | Description |
|---|---|
| C — Cost | Actual goods price (from invoice) |
| I — Insurance | Shipment insurance (~0.5–1%) |
| F — Freight | Sea/air shipping cost |
⚠️ Note: Customs uses CIF even if the invoice says FOB or EXW.
Example 1: Importing Electronics from China
| Item | USD | SAR |
|---|---|---|
| Goods price (FOB) | 10,000 | 37,500 |
| Sea freight | 1,500 | 5,625 |
| Insurance | 100 | 375 |
| CIF | 11,600 | 43,500 |
| Customs duty 5% | 580 | 2,175 |
| Pre-VAT total | 12,180 | 45,675 |
| VAT 15% | 1,827 | 6,851 |
| Total | 14,007 | 52,526 |
Extra cost: SAR 9,026 (~21%)
Special Duties for Some Products
Vehicles
- 5% customs + 15% VAT = ~20%
-
- SAR 20,000 for non-fuel-efficient vehicles
Tobacco and Alcohol (alcohol prohibited)
- Tobacco: up to 100% of value
- Alcohol: prohibited
GCC-Origin Products
- Full 5% customs exemption with a valid GCC certificate of origin
Free Trade Agreement Products
- Partial exemption depending on the agreement (e.g., Turkey, Singapore)
Factors Affecting the Calculation
1. HS Code Classification
Each product has a specific HS Code. Wrong classification = wrong duty.
Example:
- HS Code for computers: 8471 = 5% duty
- HS Code for computer parts: 8473 = 5% duty
- HS Code for smartphones: 8517 = 5% duty (but the sub-class may differ)
2. Country of Origin
- Chinese product: 5% duty
- Same product from UAE: full exemption
- Same product from Turkey (FTA): may be 0%
3. Actual Value
Customs has price databases. Deliberate under-invoicing = penalties + prosecution.
Quick Calculator
| Shipment Value (SAR) | Total Duties | Percentage |
|---|---|---|
| 10,000 | 2,075 | 20.75% |
| 50,000 | 10,375 | 20.75% |
| 100,000 | 20,750 | 20.75% |
| 500,000 | 103,750 | 20.75% |
| 1,000,000 | 207,500 | 20.75% |
Golden rule: Multiply CIF × 1.2075 = total to government.
Using the ZATCA Site
The Zakat, Tax & Customs Authority site zatca.gov.sa has a calculator:
- Look up your product’s HS Code
- Enter CIF value
- Choose country of origin
- The system calculates duties automatically
OBOOR’s Tip
Many importers miscalculate duties and get surprised. OBOOR offers:
- Accurate calculation before purchase
- Verifying the right HS Code
- Using available exemptions
Book a free consultation — accurate duty calculation + a money-saving plan.
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