Free Online Tool
UAE VAT Calculator Calculate VAT Instantly
Instantly calculate VAT in UAE. Add 5% tax to prices or remove tax from the total amount. Accurate, fast, and free.
How VAT Works in UAE
Value Added Tax (VAT) was introduced in the UAE on January 1, 2018, at a standard rate of 5%. It applies to most goods and services.
VAT Calculation Formula
To add VAT: Amount × 1.05 = Total
To remove VAT: Total ÷ 1.05 = Amount
Worked examples
Adding VAT: a service priced at AED 1,000 excluding VAT carries AED 50 VAT (1,000 × 0.05), so the customer pays AED 1,050.
Removing VAT: a receipt total of AED 1,050 including VAT is AED 1,000 net (1,050 ÷ 1.05) plus AED 50 VAT (1,050 × 5 ÷ 105).
A common mistake is taking 5% off the total: 1,050 × 0.95 = AED 997.50, which understates the net amount by AED 2.50.
Frequently Asked Questions
What is the VAT rate in UAE?
The standard VAT rate in the UAE is 5%. Some goods and services are zero-rated or exempt.
How do I calculate 5% VAT?
Multiply the amount by 0.05 to get the VAT amount. Add this to the original amount to get the total.
How do I remove VAT from a price that includes it?
Divide the VAT-inclusive total by 1.05 to get the net amount. The VAT is the difference, or total × 5 ÷ 105. For example, AED 1,050 is AED 1,000 net plus AED 50 VAT.
When does a business have to register for VAT in the UAE?
Registration is mandatory when taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to in the next 30 days. A business can register voluntarily above AED 187,500. Source: UAE Federal Tax Authority.
What is the difference between zero-rated and exempt supplies?
Both are invoiced without VAT. Zero-rated supplies are still taxable, at 0%, so the supplier can recover VAT paid on related costs. Exempt supplies are outside VAT, so that input VAT cannot be recovered.
Can I use a rate other than 5%?
Yes. The rate field starts at the UAE standard rate of 5%, but you can change it to compare scenarios or work out VAT for another country.
Is this calculator tax advice?
No. It is a free tool for quick pricing calculations. For VAT registration, returns or advice on your situation, use the Federal Tax Authority's EmaraTax services or an FTA-registered tax agent.
Need VAT built into your website or systems?
We build checkouts, invoices and ERP workflows that apply UAE VAT correctly, from WooCommerce stores to Odoo and Pause POS. For tax advice, speak to an FTA-registered tax agent.