DeadlineUAE businesses under AED 50M revenue must appoint an e-invoicing provider by 31 March 2027.See what you need

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UAE VAT calculator

Enter an amount before VAT to see the 5% VAT and the total, ready for your quote or invoice.

AED

Enter a number, for example 1,250.50

Most goods and services.

Amount before VATAED0.00
VAT (5%)AED0.00
Total including VATAED0.00

These results are estimates for general guidance only and do not constitute tax advice. VAT treatment depends on the nature of each transaction and your specific circumstances, so actual outcomes may differ. Get in touch with our VAT experts for advice tailored to your business.

Rate

5% standard rate on most goods and services supplied in the UAE, in place since 1 January 2018.

Register

Mandatory above AED 375,000 in taxable supplies and imports over 12 consecutive months. Voluntary above AED 187,500.

File

Returns and payment are due by the 28th day after the end of each tax period, or the next working day if that falls on a weekend or public holiday.

How VAT is calculated

Three everyday calculations, all at the UAE standard rate of 5%.

1

Adding VAT to a price

VAT = price before VAT × 5 ÷ 100

AED 1,000 × 5 ÷ 100 = AED 50 VAT. Total AED 1,050.

2

Taking VAT out of a total

VAT = total including VAT × 5 ÷ 105

AED 1,050 × 5 ÷ 105 = AED 50 VAT. The shortcut is to divide the total by 1.05.

3

Working out VAT payable

VAT payable = output VAT − input VAT

You charged AED 6,000 VAT on sales and paid AED 2,500 VAT on purchases. You owe AED 3,500.

A common mistake is taking 5% of a VAT-inclusive total. On AED 1,050 that gives AED 52.50, which overstates the VAT by AED 2.50.

Standard-rated, zero-rated or exempt

Zero-rated and exempt sales both carry no VAT, but they are treated differently when you reclaim VAT on your costs. Each category has conditions set out in the VAT law.

TreatmentVAT on the saleReclaim VAT on related costsExamples
Standard-rated5%YesMost goods and services
Zero-rated0%Yes, subject to the normal conditionsExports of goods and services, international transport of goods and passengers, certain means of transport, the first sale or lease of residential buildings, certain investment precious metals, certain healthcare and education services
ExemptNoneNoCertain financial services, including life insurance; residential buildings other than those that are zero-rated; bare land; local passenger transport

When you need to register

For mandatory registration, the threshold is measured on taxable supplies and imports over the previous 12 months, or those expected in the next 30 days. For voluntary registration, taxable expenses can also count toward the threshold. Registration is with the Federal Tax Authority.

Mandatory registration

AED375,000

Above this, you must register for VAT.

Voluntary registration

AED187,500

Above this, you can choose to register.

Frequently asked questions

What is the VAT rate in the UAE?

The standard rate is 5%. VAT has applied since 1 January 2018 and is administered by the Federal Tax Authority (FTA).

Is there a 9% VAT rate in the UAE?

No. 9% is the UAE Corporate Tax rate on taxable income above AED 375,000. VAT and Corporate Tax are separate taxes, and the standard VAT rate is 5%.

How do I remove VAT from a price?

Divide the VAT-inclusive price by 1.05. The result is the price before VAT, and the difference is the VAT.

What is the difference between zero-rated and exempt?

Neither carries VAT on the sale. A zero-rated supply is taxable at 0%, so VAT on related costs can be recovered under the normal conditions. An exempt supply is not taxable, so VAT on costs of making it can’t be recovered.

How do I work out VAT payable?

Subtract the VAT you paid on business purchases (input VAT) from the VAT you charged on sales (output VAT). If the result is positive, you pay the difference to the FTA. VAT on costs of making exempt supplies can’t be recovered.

When is a UAE VAT return due?

No later than the 28th day after the end of the tax period. The return and any VAT payable are due on the same date. If the 28th falls on a weekend or public holiday, the deadline moves to the next working day.

Is this calculator a substitute for tax advice?

No. It shows the arithmetic and the content is for information only. Whether a transaction is standard-rated, zero-rated or exempt depends on the facts, so check your case with a qualified tax adviser.

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