I sell in both Saudi Arabia and the UAE; how do I calculate tax for each country at its own rate?
Enter the same net price twice, once with each rate you have confirmed with each country's tax authority, and keep the two results as separate price lists. A net of 200 with 15 entered gives 230; with 5 entered it gives 210. The tool never assumes any country's rate, so an outdated one cannot slip into your prices unnoticed.
Why the calculator does not store a rate per country
Picking a country and having the rate appear might seem easier. But rates change, they can vary by type of goods or service, and any rate stored in a tool can go stale without anyone noticing. So the VAT calculator asks you for the rate every time and repeats it in the Rate you entered line for you to check. The example buttons on the page only fill the field with illustrative values; they are not official rates for any country.
Two price lists from one net price
- Set your net price, meaning what you want to keep before tax, say 200.
- Confirm the rate for your product in each country with that country's official tax authority.
- In add mode, enter 200 with the first rate. In this example, with 15 entered: tax 30, gross 230.
- Enter 200 again with the second rate. In this example, with 5 entered: tax 10, gross 210.
- Put each result into that country's price list, together with the rate and the date you confirmed it.
Notice the net stayed at 200 both times. That is the point: your income is fixed, and each customer pays their own country's tax.
What if you want one shelf price everywhere?
Some sellers prefer a single price everyone sees, say 230. Then your net changes by country. Extract 230 at each rate: with 15 entered the net is 200, and with 5 entered it is 219.05. That is a commercial choice, but do the sums before you make it, and pick the right currency from the calculator's currency list for each price list.
What goes beyond arithmetic
Do you need to register in the second country? Where is tax due when you sell from one country to a customer in another? These are legal and tax questions the calculator cannot answer; a qualified adviser or the official authorities can.
Once you know, use the Quotation generator and Basic invoice generator with the right price list for each customer, and state the rate used on every document. The templates are basic and are not a certified e-invoicing system.
Common questions
Are the 15 and 5 in this article the two countries' rates?
They are values for the worked example only. We do not state any country's rate as fact, so check the current rate with the official source.
Do I need two copies of the calculator open?
No. Change the rate in the same field and the result updates straight away.