Guide · Customs Duties & VAT

How to Calculate Customs Duty in Saudi Arabia

Understand exactly what you will pay to import into Saudi Arabia: customs duty, VAT and total landed cost. Learn the formula, then compare live shipping rates and clear customs on Cargolink.

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Duty + VAT explainedCIF & HS codesLanded cost

The Building Blocks of Import Cost

Four factors decide what you pay at the Saudi border.

CIF Value

Customs value equals the Cost of goods + Insurance + Freight to the Saudi port. Duty is calculated on this.

HS Code & Duty Rate

Each product has an HS code that sets its duty rate, commonly 5% but higher for some categories.

VAT (15%)

Saudi VAT of 15% is charged on the CIF value plus the customs duty.

Clearance & Fees

Add customs clearance, SABER and handling to reach your true landed cost.

The Customs Duty Formula

How to work out your total import cost, step by step.

1

Find the CIF value

Add your goods cost, insurance, and freight to the Saudi port. This is the customs value.

2

Apply the duty rate

Multiply CIF by the duty rate for your product’s HS code (commonly 5%) to get the customs duty.

3

Add 15% VAT

VAT is 15% of (CIF value + customs duty). Add this to your cost.

4

Add clearance & SABER

Add customs clearance, SABER and handling fees for your total landed cost.

A Worked Example

How the numbers come together on a sample shipment.

Goods value (Cost)

Say your goods cost 10,000 SAR from the supplier.

Add Insurance + Freight

Add 500 SAR insurance and 1,500 SAR freight → CIF value = 12,000 SAR.

Customs duty (5%)

5% of 12,000 = 600 SAR customs duty.

VAT (15%)

15% of (12,000 + 600) = 1,890 SAR VAT.

Duty + VAT total

600 + 1,890 = 2,490 SAR in duty and VAT.

Plus clearance

Add customs clearance and SABER for your final landed cost.

Plan your landed cost

Compare live shipping rates to Saudi Arabia and add customs clearance to know your total cost upfront.

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Customs Duty FAQ

Common questions about Saudi import duties and VAT.

How is customs duty calculated in Saudi Arabia?
Customs duty is calculated as a percentage of the CIF value (Cost + Insurance + Freight). The rate depends on the product’s HS code and is commonly 5%, though some categories differ. VAT of 15% is then applied on the CIF value plus the duty.
What is the VAT rate on imports to Saudi Arabia?
The standard VAT rate in Saudi Arabia is 15%, charged on the customs value (CIF) plus the customs duty.
What is CIF value?
CIF stands for Cost, Insurance and Freight. It is the value of your goods plus insurance plus the freight cost to the Saudi port, and it is the base on which customs duty is calculated.
How do I find my product’s duty rate?
Each product has an HS (Harmonized System) code that determines its duty rate. Cargolink can help identify the applicable rate and handle clearance for your shipment.

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