Free UAE VAT Calculator
Add or remove 5% VAT in seconds and see the net amount, VAT and total — no formulas, no spreadsheets.
VAT rate — standard is 5%
Tax treatment
Result
Total amount incl. VAT
AED 1,050.00
Net amount (ex-VAT)
AED 1,000.00
VAT @ 5%
AED 50.00
AED 1,000.00
Net + AED 50.00
VAT = AED 1,050.00
Total
Net + AED 50.00
VAT = AED 1,050.00
Total
How to calculate VAT in the UAE
This free UAE VAT calculator does the math for you in three quick steps — whether you need to add VAT to a net price or remove VAT from a price that already includes it.
1
Enter the amount
Type the price of your goods or service in AED.
2
Choose the VAT rate
Use 5% (standard), 0% (zero-rated) or set a custom rate.
3
Add or remove VAT
Pick whether the amount excludes or includes VAT — the result updates instantly.
What is VAT in the UAE?
Value Added Tax (VAT) is an indirect, consumption-based tax applied at each stage of the supply chain. It was introduced in the United Arab Emirates on 1 January 2018 at a standard rate of 5%, and is administered by the Federal Tax Authority (FTA). Businesses collect VAT on their sales (output VAT), reclaim VAT on their purchases (input VAT), and pay the difference to the FTA.
UAE VAT rates & categories
| Category | Rate | Typical examples |
|---|---|---|
| Standard-rated | 5% | Most goods & services supplied within the UAE |
| Zero-rated | 0% | Exports outside the GCC, international transport, certain healthcare & education, first supply of new residential property, qualifying investment-grade precious metals |
| Exempt | No VAT | Certain financial services, residential property (after first supply), bare land, local passenger transport |
| Out-of-scope | — | Supplies made outside the UAE or that aren’t taxable supplies |
Zero-rated vs exempt: both mean no VAT is charged to the customer, but the difference matters for input tax recovery — businesses making zero-rated supplies can generally reclaim input VAT, while those making exempt supplies usually cannot. Always confirm your supply’s classification with the FTA or a tax adviser.
Who needs to register for VAT?
Registration depends on your taxable turnover in any rolling 12-month period:
Mandatory
Taxable supplies & imports over AED 375,000 — you must register within 30 days of crossing the threshold.
Voluntary
Taxable supplies & imports (or expenses) over AED 187,500 — you may choose to register, which lets you reclaim input VAT.
VAT calculation formula (with examples)
Prefer to see the maths? These are the exact formulas the calculator uses, with worked AED examples at the UAE standard 5% rate.
Read this first
In every formula below, “VAT Rate” is the percentage you charge — for the UAE standard rate that is 5. To avoid mixing 5 and 0.05, all formulas keep the same form: VAT Rate ÷ 100. So at 5%, VAT Rate ÷ 100 = 0.05 and 1 + VAT Rate ÷ 100 = 1.05.
+Adding VAT price excludes VAT
VAT = Net Price × (VAT Rate ÷ 100)
Total = Net Price + VAT
Example — net AED 100 at 5%
VAT= 100 × (5 ÷ 100) = AED 5.00
Total= 100 + 5 = AED 105.00
−Deducting VAT price includes VAT
Net Price = Inclusive Price ÷ (1 + VAT Rate ÷ 100)
VAT = Inclusive Price − Net Price
Example — gross AED 100 incl. VAT at 5%
Net= 100 ÷ 1.05 = AED 95.24
VAT= 100 − 95.24 = AED 4.76
=Quick total net → total in one step
Total = Net Price × (1 + VAT Rate ÷ 100)
At 5%: Total = Net Price × 1.05
Example — net AED 100 at 5%
Total= 100 × 1.05 = AED 105.00
VAT= 105 − 100 = AED 5.00
Figures are rounded to 2 decimal places (fils). Swap 5 for any rate to reuse these formulas — for a zero-rated supply (rate 0), the VAT is always 0.
Frequently asked questions
What is the VAT rate in the UAE?
The standard VAT rate in the UAE is 5%, introduced on 1 January 2018 and administered by the Federal Tax Authority. Some supplies are zero-rated (0%) or exempt, and a few are out of scope.
What is the formula to calculate VAT?
To add VAT: VAT = Net Price × (VAT Rate ÷ 100), then Total = Net Price + VAT. To find the net from a VAT-inclusive price: Net Price = Inclusive Price ÷ (1 + VAT Rate ÷ 100). For the UAE standard 5% rate, this means multiplying by 1.05 to add VAT and dividing by 1.05 to remove it.
How do I add 5% VAT to a price?
Use VAT = Net Price × (VAT Rate ÷ 100), then add it on. At 5% that means multiplying the net amount by 0.05. Example: AED 1,000 × (5 ÷ 100) = AED 50 VAT, giving a total of AED 1,050.
How do I remove VAT from a VAT-inclusive price?
Use Net Price = Inclusive Price ÷ (1 + VAT Rate ÷ 100). At 5% that is ÷ 1.05. Example: AED 1,050 ÷ 1.05 = AED 1,000 net, so VAT = AED 50.
What’s the difference between zero-rated and exempt supplies?
Both mean no VAT is charged to the customer. The key difference is input tax recovery: businesses making zero-rated supplies can usually reclaim input VAT, while those making exempt supplies generally cannot.
When must a business register for VAT in the UAE?
Registration is mandatory once taxable supplies and imports exceed AED 375,000 in a rolling 12-month period, and voluntary above AED 187,500.
Is this VAT calculator free?
Yes. The ProfitBooks UAE VAT calculator is completely free, needs no sign-up, works on mobile and desktop, and updates instantly as you type.
Keep your VAT in order, every invoice
ProfitBooks helps you raise VAT-compliant invoices, track input and output VAT, and keep your books ready for filing — so you spend less time on tax and more on your business.
Start Free — No Credit Card →Trusted by 100000+ growing businesses · Rated 4.5/5 on Capterra
This calculator is for general guidance only and reflects the UAE standard VAT rate of 5%. It is not tax advice — VAT classification (standard, zero-rated, exempt) can be complex, so confirm treatment with the FTA or a qualified adviser before filing. Note: phased mandatory e-invoicing for VAT-registered businesses begins in 2026.
