UAE VAT Calculator
Add 5% VAT to a price in dirhams, or find how much VAT is inside a total.
How your UAE VAT is worked out
Add VAT: amount × 1.05. Remove VAT: total × 5 ÷ 105.
- 1
Work out the VAT
AED 10,000.00 × 5%
= AED 500.00 - 2
Add it on
AED 10,000.00 + AED 500.00
= AED 10,500.00 - 3
Your VAT return
AED 500.00 − AED 0.00
= AED 500.00 to pay
Read more: the formula, a worked example, what's zero-rated or exempt, and registration
The formula
Add VAT: total = price × 1.05
VAT = price × 5 ÷ 100
Remove VAT: VAT = total × 5 ÷ 105
price before VAT = total ÷ 1.05
From the VAT: price = VAT × 20, total = VAT × 21
VAT return: output VAT − input VAT = to pay (or back)
Zero-rated and exempt items add nothing to the VAT. Each line is rounded to the nearest fils (AED 0.01), and the invoice totals add up the rounded lines.
Worked example
AED 10,000 plus 5% VAT is AED 10,000 × 5 ÷ 100 = AED 500 of VAT, so the total is AED 10,000 + AED 500 = AED 10,500. To take the VAT out of AED 10,500, work out 10,500 × 5 ÷ 105 = AED 500, leaving AED 10,000. A common mistake is to take 5% of AED 10,500, which gives AED 525 instead of the correct AED 500.
If this is your only sale in the period and you paid no VAT on purchases, your VAT return shows AED 500 − AED 0 = AED 500 to pay.
Quantity, discount and mixed invoices
VAT is charged on the price after any discount shown on the invoice. 3 items at AED 1,000 with a 10% discount come to AED 3,000 × 0.9 = AED 2,700, so VAT is AED 135 and the total AED 2,835. An invoice with AED 2,000 of standard-rated goods, AED 1,000 of zero-rated exports and AED 500 of exempt services carries VAT of AED 100 only (5% of AED 2,000), for a total of AED 3,600.
Standard, zero-rated and exempt (UAE)
| Treatment | VAT | Examples |
|---|---|---|
| Standard | 5% | Most goods and services, restaurants, hotels, commercial rent, cars, electronics |
| Zero-rated | 0% | Exports outside the GCC, international transport, certain education and healthcare, the first supply of a new home, investment-grade gold, silver and platinum |
| Exempt | none | Certain financial services, bare land, local passenger transport, later sales and leases of homes |
The difference matters to businesses: VAT paid on costs linked to zero-rated sales can usually be claimed back, but VAT on costs linked to exempt sales generally can't.
Registration thresholds (UAE)
A business must register for VAT when its taxable sales (standard and zero-rated, plus some imports) go over AED 375,000 in the last 12 months, or are expected to in the next 30 days. It may register voluntarily when taxable sales or taxable expenses go over AED 187,500. Exempt sales don't count towards either figure.
Other UAE notes
Designated zones: some free zones are treated as outside the UAE for VAT on certain movements of goods between businesses in them. Services, and goods sold to consumers, in those zones are usually taxed as normal. Check whether your free zone is a designated zone before leaving VAT off.
Imports: a VAT-registered business normally accounts for VAT on imported goods and services itself under the reverse charge, showing it as both output and input VAT on the return.
Tourists: visitors can claim back VAT on many shopping purchases from shops in the tourist refund scheme when they leave the UAE. A processing fee and conditions apply; ask the shop or check the FTA's site for current rules.
For general information only. Rules written on 10 October 2026 from general knowledge and not yet checked against the Federal Tax Authority's pages: check tax.gov.ae (FTA) or a registered tax agent before you issue invoices or file a return.
Common questions
How do I calculate 5% VAT in the UAE?
Multiply the price by 5 and divide by 100 to get the VAT, or multiply it by 1.05 to get the total. AED 10,000 plus 5% VAT is AED 500 of VAT, so the total is AED 10,500. Each invoice line is rounded to the nearest fils (AED 0.01).
How do I remove VAT from a price in the UAE?
Multiply the VAT-inclusive total by 5 and divide by 105 to get the VAT, or divide the total by 1.05 to get the price before VAT. AED 10,500 × 5 ÷ 105 = AED 500 of VAT, leaving AED 10,000. Taking 5% of AED 10,500 gives AED 525, which is wrong.
When does a business have to register for VAT in the UAE?
A business must register when its taxable sales go over AED 375,000 in the last 12 months, or are expected to in the next 30 days. It may register voluntarily when taxable sales or taxable expenses go over AED 187,500. Exempt sales don't count. Check the current rules on the Federal Tax Authority's site.
What is zero-rated and exempt under UAE VAT?
Zero-rated supplies, such as exports outside the GCC, international transport and the first supply of a new home, carry 0% VAT. Exempt supplies, such as certain financial services, bare land and local passenger transport, carry no VAT at all. VAT on costs linked to zero-rated sales can usually be claimed back; for exempt sales it generally can't.
Can tourists get VAT back in the UAE?
Visitors can claim back VAT on many shopping purchases from shops in the tourist refund scheme when they leave the UAE. A processing fee and conditions apply, so ask the shop or check the Federal Tax Authority's site for the current rules.
How do I work out the VAT to pay on my UAE VAT return?
Take the VAT you paid on business costs (input VAT) away from the VAT you charged on sales (output VAT). If the answer is positive, you pay it; if it's negative, the difference comes back to you. With AED 500 of output VAT and no input VAT, you pay AED 500.
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