Calculate 5% UAE VAT instantly — add VAT to an ex-VAT price or extract VAT from a VAT-inclusive amount.
The UAE introduced Value Added Tax (VAT) on 1 January 2018. The standard rate is 5% — one of the lowest VAT rates in the world. It applies to most goods and services sold or supplied in the UAE.
If your price is expressed excluding VAT (ex-VAT), multiply by 1.05 to get the VAT-inclusive total:
If your price is VAT-inclusive and you need to separate the VAT:
Any UAE business with total taxable supplies exceeding AED 375,000 per year must register for VAT with the FTA and charge 5% on standard-rated supplies. Voluntary registration is available for businesses above AED 187,500.
Once registered, you must issue UAE-compliant tax invoices showing your Tax Registration Number (TRN) and the VAT amount separately.
Not every supply in the UAE attracts 5% VAT. The main exempt and zero-rated categories:
Zero-rated supplies are technically taxable (at 0%) — the supplier can still reclaim input VAT on their costs. Exempt supplies cannot reclaim input VAT.
VAT 201 returns auto-generated from your invoices — no manual calculations needed.
Most VAT errors in the UAE fall into a handful of recurring patterns. Understanding these mistakes helps you avoid FTA penalties and ensures your VAT 201 return is correct every period.
If a customer pays AED 1,050 and that figure already includes VAT, multiplying by 0.05 gives you AED 52.50 — not the actual VAT of AED 50. To extract VAT from an inclusive price, divide by 1.05 and subtract. Formula: VAT = Total ÷ 1.05 × 0.05. The calculator above handles both directions.
The FTA requires a compliant tax invoice with the supplier's TRN, your name and TRN, a sequential invoice number, and all required fields to allow input VAT recovery. A receipt, delivery note, or pro-forma invoice does not qualify. Input VAT claimed without proper documentation can be disallowed and penalised during an audit.
When a UAE-registered business receives services from an overseas supplier — Google Ads, software subscriptions, consulting fees, design services — the reverse charge mechanism applies. You must account for 5% output VAT and, if the service is for a taxable purpose, claim it back as input VAT in the same return. Many businesses simply ignore these transactions, understating their output tax.
Zero-rated (0%) and exempt supplies are both "not charged at 5%", but they are fundamentally different. Zero-rated supplies (exports, international transport, bare land sales) still allow you to recover input VAT on related costs. Exempt supplies (residential rent, bare land rental, certain financial services) do not — input VAT on costs attributable to exempt supplies must be blocked or apportioned.
The mandatory VAT registration threshold is AED 375,000 in taxable turnover in the last 12 months (or expected in the next 30 days). Businesses that grow quickly sometimes cross this threshold without noticing. Late registration carries a penalty of AED 20,000. If you are unsure whether you have crossed the threshold, use the VAT calculator above to review your monthly revenue totals.
Use the calculator above to add 5% VAT to a net amount, or extract the VAT component from a VAT-inclusive price. UAE VAT has been in effect since January 2018 at a flat 5% rate — one of the lowest VAT rates globally.
Multiply the net (ex-VAT) price by 1.05. AED 1,000 net becomes AED 1,050 gross. The VAT amount is AED 50 — the amount you charge customers and remit to the FTA.
Divide the gross (VAT-inclusive) price by 1.05. AED 1,050 ÷ 1.05 = AED 1,000 net. The VAT component is AED 50. Use this when a price already includes VAT.
Some supplies are zero-rated (exports, certain food, healthcare). Others are exempt (residential rent, bare land). This calculator applies to standard-rated 5% supplies only.
Businesses must register when taxable supplies exceed AED 375,000 in any 12-month period. Voluntary registration available from AED 187,500. All standard-rated sales then carry 5% VAT.
The standard UAE VAT rate is 5%. It applies to most goods and services in the UAE. Some supplies are zero-rated (0%) such as exports and international transport, and some are exempt such as residential property rental and bare land.
Multiply the ex-VAT price by 0.05 to get the VAT amount, or by 1.05 to get the total including VAT. Example: AED 1,000 ex-VAT → VAT = AED 50 → Total = AED 1,050.
Divide the VAT-inclusive price by 1.05 to get the ex-VAT amount. The difference is the VAT. Example: AED 1,050 inc. VAT → Ex-VAT = AED 1,000 → VAT = AED 50.
Any UAE business with total annual taxable supplies exceeding AED 375,000 must register for VAT with the FTA. Voluntary registration is available for businesses with supplies exceeding AED 187,500. Once registered, you must charge 5% VAT on standard-rated supplies and file quarterly VAT 201 returns.
Yes, if you are VAT-registered. VAT paid on business expenses (input tax) can be reclaimed on your VAT 201 return in Box 10, provided you hold a valid UAE tax invoice from the supplier showing their TRN and the VAT amount.
Quick answers to the most searched UAE VAT questions.
Learn how UAE VAT works in practice