VAT is off by default. Open Settings, then Tax, and turn on Charge VAT when your business is registered for it. Whether you are required to register is a question for your accountant, not for this page.
The rate#
Enter it as a percentage, with up to two decimals. Saudi VAT is 15, so that is what most stores here enter.
Included in your prices, or added at checkout#
This is the setting worth getting right, because it changes what the shopper pays without changing any product price you have typed in.
- Prices include VAT: the price on the product page is the final price. Checkout does not add a tax line on top, it shows how much of that price was VAT.
- Add VAT at checkout: the price on the product page is before tax, and checkout adds VAT as a separate line.
For a store selling to consumers in Saudi Arabia, tax-included pricing is the norm: shoppers expect the number on the product to be the number they pay.
Switching between the two changes your totals, not your product prices. A 100 riyal product is 100 riyals at checkout with VAT included, and 115 riyals with VAT added on top at 15 percent. Check a test order after you change this.