UAE VAT Calculator — Calculate 5% VAT Online
Calculate 5% UAE VAT instantly. Add VAT to a price or extract VAT from a VAT-inclusive amount. Enter any AED amount to view the net price, VAT amount and total in real time.
Uses the UAE standard 5% VAT rate. For zero-rated or exempt supplies, verify with the Federal Tax Authority.
How Is UAE VAT Calculated?
The mathematics of the 5% standard rate, simplified. Learn exactly how to add VAT to net prices or extract it from total amounts.
Adding 5% VAT
Net Price → Total PriceWhen your starting price is exclusive of VAT, you must calculate 5% and add it to the total.
Amount × 1.05 = TotalRemoving 5% VAT
Total Price → Net PriceWhen your starting price already includes VAT, use the 1.05 extraction factor to find the net amount.
Total ÷ 1.05 = Net AmountUAE VAT Calculation Examples
See how the UAE's standard 5% VAT rate affects common amounts, whether you are adding VAT to a price or extracting VAT from a VAT-inclusive total.
Adding 5% VAT
Net Amount → Total Inclusive| Amount Before VAT | VAT 5% | Total Including VAT |
|---|---|---|
| AED 100.00 | AED 5.00 | AED 105.00 |
| AED 500.00 | AED 25.00 | AED 525.00 |
| AED 1,000.00 | AED 50.00 | AED 1,050.00 |
| AED 5,000.00 | AED 250.00 | AED 5,250.00 |
| AED 10,000.00 | AED 500.00 | AED 10,500.00 |
Removing VAT From a VAT-Inclusive Amount
Gross Total → Net Amount| Amount Including VAT | VAT Included | Amount Before VAT |
|---|---|---|
| AED 105.00 | AED 5.00 | AED 100.00 |
| AED 525.00 | AED 25.00 | AED 500.00 |
| AED 1,050.00 | AED 50.00 | AED 1,000.00 |
| AED 5,250.00 | AED 250.00 | AED 5,000.00 |
| AED 10,500.00 | AED 500.00 | AED 10,000.00 |
To extract VAT from a VAT-inclusive amount, divide the total by 1.05 to find the amount before VAT.
What Is the VAT Rate in the UAE?
The standard VAT rate in the UAE is 5%. VAT was introduced in the United Arab Emirates on 1 January 2018.
The 5% standard rate applies to many taxable goods and services, although some supplies may be zero-rated or exempt under UAE VAT rules.
Not every supply is treated as standard-rated. Certain goods and services may be zero-rated or exempt under UAE VAT rules. The applicable VAT treatment depends on the nature of the supply and the relevant tax rules.
VAT Inclusive vs VAT Exclusive Prices
A VAT-exclusive price is shown before VAT is added, while a VAT-inclusive price already contains the 5% UAE VAT. Understanding the difference helps you read prices, quotations and invoices correctly.
VAT Exclusive
Price before VATAmount × 1.05 = Total Including VAT
AED 1,000 × 1.05 = AED 1,050VAT Inclusive
Price already includes VATVAT-Inclusive Amount ÷ 1.05 = Amount Before VAT
AED 1,050 ÷ 1.05 = AED 1,000If a price is listed as AED 1,000 excluding VAT, 5% VAT adds AED 50, making the total AED 1,050. If AED 1,050 already includes VAT, the VAT contained in that amount is AED 50. Always check whether a quotation is VAT-inclusive or VAT-exclusive.
When Does UAE VAT Apply?
The standard UAE VAT rate is 5%, but UAE VAT rules also provide for zero-rated and exempt supplies. The correct VAT treatment depends on the type of goods or services and the applicable tax rules.
Standard-Rated Supplies
VAT is charged at the standard 5% UAE rate. This is the default treatment for most taxable goods and services across all Emirates and connects directly to standard invoice calculations.
Zero-Rated Supplies
VAT is charged at a rate of 0% for qualifying supplies under UAE VAT rules. The transaction remains within the VAT system, allowing registered businesses to claim eligible input tax.
Exempt Supplies
No VAT is charged on qualifying exempt supplies under applicable tax rules. Because these transactions are outside the standard VAT charging mechanism, input tax recovery is generally restricted.
How VAT Appears on Prices and Invoices
When a business charges standard-rate UAE VAT, the price, VAT amount and total can be shown separately so the customer can clearly understand what they are paying.
Before VAT (Subtotal)
The base amount charged for goods or services before adding standard-rate VAT.
VAT Amount (5%)
The applicable VAT amount calculated at exactly 5% for standard-rated transactions.
Total (Gross Payable)
The full final amount the customer pays after 5% VAT is added to the subtotal.
AED 1,000 × 5% = AED 50.00AED 1,000 + AED 50 = AED 1,050.00Whether VAT is shown separately or included in a displayed price depends on how the price is presented. Always check whether a quotation or advertised amount is VAT-inclusive or VAT-exclusive.
Who Needs to Register for VAT in the UAE?
VAT registration in the UAE depends on the value of a business's taxable supplies and other applicable rules. Businesses should check the current Federal Tax Authority requirements to determine whether registration is mandatory or voluntary.
Mandatory VAT Registration
Annual Taxable Supplies & Imports Threshold
- 12-Month Rule: Taxable supplies and imports exceeded AED 375,000 in the previous 12 months, OR
- 30-Day Rule: Taxable supplies and imports are expected to exceed AED 375,000 within the next 30 days.
Voluntary VAT Registration
Qualifying Taxable Supplies or Expenses Threshold
- 12-Month Rule: Taxable supplies, imports, or expenses exceeded AED 187,500 in the past 12 months, OR
- 30-Day Rule: Taxable supplies, imports, or expenses are expected to exceed AED 187,500 in the next 30 days.
Registration Not Required
Annual Turnover Below Voluntary Limit
- Businesses below AED 187,500 in taxable supplies and expenses are exempt from registration.
- Cannot register for VAT until reaching the AED 187,500 voluntary threshold.
VAT registration requirements can depend on the nature and value of taxable supplies and other applicable conditions. Always check the latest requirements before making a registration decision.
For official tax guidelines and threshold verification, refer directly to the UAE Federal Tax Authority.