Free UAE VAT Calculator
Add or remove 5% VAT in seconds and see the net amount, VAT and total, with no formulas or spreadsheets.
Result
Net + AED 50.00
VAT = AED 1,050.00
Total
Need a tax invoice for this amount? The free VAT invoice generator adds your TRN and works out VAT on every line. ProfitBooks does it on every invoice you raise.
Start your free trialHow to calculate VAT in the UAE
This free UAE VAT calculator does the maths for you in three quick steps. Use it to add VAT to a net price or remove VAT from a price that already includes it.
Enter the amount
Type the price of your goods or service in AED.
Choose the VAT rate
Use 5% (standard), 0% (zero-rated) or set a custom rate.
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:
Taxable supplies & imports over AED 375,000. You must register within 30 days of crossing the threshold.
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 rate of 5%.
In every formula below, “VAT Rate” is the percentage you charge, which for the UAE standard rate is 5. To avoid mixing whole numbers and decimals, all formulas keep the same form: VAT Rate ÷ 100. So at 5%, VAT Rate ÷ 100 = 0.05 and 1 + VAT Rate ÷ 100 = 1.05.
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.
Common VAT calculation mistakes
- Taking 5% of a VAT-inclusive priceOn AED 1,050 including VAT, 5% of the total is AED 52.50, but the VAT inside it is AED 50.00. Divide by 1.05 first, or use Remove VAT above.
- Treating zero-rated and exempt supplies the sameNeither adds VAT to the price, but they are reported and recovered differently. The note above and our guide to VAT in the UAE explain the difference.
- Leaving the VAT amount off the invoiceShow the net amount, the VAT and the total on the tax invoice. Our guide to the tax invoice under UAE VAT lists what it should include.
- Rounding each line differentlyRounding every line and then adding can give a slightly different total than rounding once at the end. Use one method on every invoice.
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 is 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 UAE 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.
Can I enter a different VAT rate?
Yes. Type any rate in the Custom box to model a scenario. The net amount, VAT and total update as you type.
How do I turn this result into a tax invoice?
Use the free ProfitBooks VAT invoice generator. Add your TRN, your customer's details and each item with its VAT treatment, and it works out the VAT on every line. You can then download a PDF or print it.
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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.
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.