Showing Salla VAT inclusive prices is not just a marketing choice; it is what the Zakat, Tax and Customs Authority (ZATCA) requires for prices advertised to consumers. The catch is that an inclusive price is a rounded figure. When the pre-tax price is worked out from it and VAT is then added back, a difference of one or two halalas can appear between the store price, the invoice total and the entry in your accounting system.
These differences are tiny on a single order, but they add up across thousands of orders. They surface when you match the VAT return to payment gateway statements, and they cost your accountant time tracing where they came from.
This article explains why prices are shown VAT-inclusive, how to work out the pre-tax price correctly, where rounding differences come from, how shipping and discounts affect VAT, and how to match the Salla invoice to the ERP journal entry.
Why Stores Show VAT-Inclusive Prices
Stores show VAT-inclusive prices because ZATCA’s guidelines require it. ZATCA’s e-commerce VAT guideline states that final prices advertised to consumers on websites, platforms and apps must include VAT.
ZATCA’s retail sector VAT guideline makes the same point: the price advertised in the local market must include VAT, and a store may not show the pre-tax price and add VAT at checkout. The aim is that consumers know what they will actually pay before they decide to buy.
VAT Settings on a Salla Store
Salla’s help centre has a VAT setup guide covering the VAT number, VAT on shipping fees, showing prices including VAT, and exempting products that are not subject to VAT. Salla’s merchant suggestions portal also shows that requests to enter product prices VAT-inclusive and to handle halala rounding were developed and launched in October 2025, so check your store settings to confirm which option is active.
Working Out the Pre-Tax Price from the Inclusive Price
The price before VAT equals the inclusive price divided by 1.15, and the VAT equals the inclusive price multiplied by 15/115. This is the method set out in ZATCA’s guidelines; it is not the same as taking 15% off the inclusive price, as some merchants assume.
| Inclusive Price | Price Before VAT (÷ 1.15) | VAT (× 15/115) | Common Mistake: Minus 15% |
|---|---|---|---|
| SAR 115.00 | SAR 100.00 | SAR 15.00 | SAR 97.75 |
| SAR 230.00 | SAR 200.00 | SAR 30.00 | SAR 195.50 |
| SAR 79.00 | SAR 68.70 | SAR 10.30 | SAR 67.15 |
| SAR 49.00 | SAR 42.61 | SAR 6.39 | SAR 41.65 |
The error in the last column is in riyals, not halalas, because 15% of the inclusive price is larger than the actual VAT. Pricing this way means either declaring more VAT than is due or recording less revenue than you earned.
Where Rounding Differences Come From
Rounding differences come from rounding the pre-tax price or the VAT to the nearest halala at one step, then building on the rounded figure at a later step. ZATCA’s retail guideline says VAT on the invoice is rounded to the nearest halala, so rounding itself is correct; the problem is when and how often it happens.
Source One: Entering the Pre-Tax Price in the Store
A merchant who wants a product to show at SAR 79 enters SAR 68.70 before VAT. The store adds 15% and the price becomes SAR 79.01, because 68.70 is itself rounded from 68.6957. It is better to enter the inclusive price directly and let the system work out the pre-tax amount.
Source Two: Rounding Per Unit Instead of Per Line Total
Take an order of three items at SAR 49, one at SAR 79 and two at SAR 129, with a displayed total of SAR 484. If VAT is calculated per unit on a rounded unit price and then summed, the total becomes SAR 484.01. If VAT is extracted from the inclusive total, it is SAR 63.13 and the total stays at SAR 484, as the customer saw it.
Source Three: Different Rounding Rules in Store and ERP
The store may calculate VAT at order level while the accounting system calculates it per line. Odoo, for example, has a tax-included setting and a rounding method setting: per line or across the whole document. If those settings do not match the store’s method, small gaps appear between the Salla invoice and the ERP entry.
Shipping, Discounts and Their Effect on VAT
Shipping fees the store charges the customer are part of the value of the supply and are subject to VAT, while a discount given at the time of sale reduces the amount VAT is calculated on. These two items cause most of the gaps between order totals and recorded revenue.
VAT on Shipping in Saudi Arabia
ZATCA’s guidelines treat delivery tied to the sale of goods as part of a single supply of those goods. So if a customer pays SAR 23 for shipping including VAT, the revenue is SAR 20 and the VAT is SAR 3. Salla’s settings let you apply VAT to shipping fees, and this should be switched on so the invoice follows that rule. Free shipping is not a separate supply and carries no VAT of its own.
Discounts and Coupons
ZATCA’s retail guideline states that discounts granted to the customer reduce the value of the supply, and VAT is charged on the discounted amount. Example: a cart of SAR 230 including VAT with a 10% coupon comes to SAR 207, made up of SAR 180 before VAT and SAR 27 VAT.
A discount given after the invoice is issued, such as compensation for late delivery, is handled with a credit note under the same guideline. For more on regular and sale prices, read what goes on the tax invoice for a Salla sale price.
Also read: Salla product options linked to price, stock and SKU, because setting a correct inclusive price for every option removes many halala gaps from the start.
If you keep finding differences between your VAT return and your store sales, talk to the Daysum team to review the tax settings in both your store and your system.
Matching the Salla Invoice to the ERP Journal Entry
The Salla invoice matches the ERP journal entry when the system receives the order with the same inclusive figures and extracts VAT the same way. The entry is then an exact copy of the invoice, down to the halala.
Back to the earlier example: products of SAR 207 after discount plus SAR 23 shipping, for a total of SAR 230 including VAT. The entry is recorded as follows:
| Account | Debit | Credit |
|---|---|---|
| Payment gateway or courier receivable | 230.00 | |
| Sales revenue (after discount) | 180.00 | |
| Shipping revenue | 20.00 | |
| Output VAT payable | 30.00 |
Payment gateway fees and platform commission are recorded later, at settlement, as a separate expense; they are not netted off revenue in this entry. Keeping them apart is what makes reconciling a Salla store straightforward, as we explain in our article on automated Salla accounting.
How the Integration Keeps Figures Aligned
When Salla is connected to an accounting system through Daysum’s Salla integration app, the order figures move into the system unchanged, and the e-invoice is issued and sent to the Fatoora platform. Daysum configures Odoo with tax-included prices and a rounding method that matches the store, so the invoice total equals what the customer paid. To see how the system brings these figures into the return, read our article on VAT management in Odoo.
To check alignment regularly, compare three figures at the end of each month: total store sales including VAT, total invoices issued in the accounting system, and total amounts transferred by payment gateways and couriers once their fees are added back. If the first two match and the third does not, the gap is usually in fees or in orders not yet settled, not in VAT.
Conclusion: One Correct Price in Store, Invoice and Books
VAT-inclusive prices on Salla are a regulatory requirement, and the right method is to enter the inclusive price and derive the pre-tax price by dividing by 1.15. Halala differences come from rounding too early or too often, or from different rounding rules in the store and the accounting system.
Setting Salla’s VAT and shipping options correctly, applying discounts before VAT is calculated, and aligning the rounding method in the accounting system makes the displayed price, the invoice and the entry one figure.
If you want your Salla sales to match your books and VAT return without manual adjustments, contact the Daysum team to discuss connecting your store to your accounting system.
FAQs About VAT-Inclusive Prices
Divide the inclusive price by 1.15 to get the price before VAT, or multiply it by 15/115 to get the VAT amount. A product priced at SAR 115 including VAT is SAR 100 before VAT with SAR 15 VAT. Do not take 15% off the inclusive price, because the result will be wrong.
Yes. Shipping fees the store charges along with the goods are treated as part of the supply and are subject to 15% VAT. Shipping of SAR 23 including VAT is SAR 20 revenue and SAR 3 VAT. Salla's settings let you apply VAT to shipping fees.
This usually happens when a rounded pre-tax price is entered and VAT is added on top, or when VAT is rounded per unit and then summed. The fix is to enter VAT-inclusive prices, extract VAT from the inclusive total, and use the same rounding method in the store and the accounting system.
VAT is calculated on the amount after a discount given at the time of sale, because the discount reduces the value of the supply. A discount given after the invoice is issued is handled with a credit note, which reduces sales and VAT in the period it is issued.
No. ZATCA's guidelines require final prices advertised to consumers to include VAT. The VAT amount can be broken out on the invoice, but the product price shown must be the price the customer will pay.
