UAE VAT Calculator
Add or remove 5% VAT on any amount. This calculator shows the net, the VAT and the gross together, whichever direction you came in from, with the formula behind each. VAT has applied in the UAE since 1 January 2018 at a standard rate of 5%, with registration mandatory above AED 375,000 of annual taxable supplies. Removing VAT from a total means dividing by 1.05, not subtracting 5% — the difference is what makes a VAT return fail to reconcile.
The result updates as you type.
Add VAT if you have the amount before tax. Remove VAT if you have the total and need the amount before tax.
Standard, zero-rated, or another jurisdiction’s rate.
Saudi Arabia is 15%. Bahrain and Oman are 10%.
Total including VAT
AED 0
Enter your details to see the estimate.
| Breakdown | Amount |
|---|---|
| Amount before VAT (net) | — |
| VAT at 5% | — |
| Total including VAT (gross) | — |
Calculated in your browser. Nothing you type here reaches our servers or creates a record.
This is an estimate based on the figures you entered, provided for guidance only. It is not legal, tax or financial advice, and it does not account for the terms of an individual contract. Confirm your position with a qualified adviser or the relevant authority before acting on it.
The 5% rate and the registration thresholds are pending confirmation against tax.gov.ae. This page will carry a "last verified" date once that check is done.
The rule
How VAT works in the UAE
VAT has applied in the UAE since 1 January 2018 at a standard rate of 5%, one of the lowest in the world. It is charged on most goods and services, collected by the business and paid to the Federal Tax Authority.
Three treatments exist, and the difference between them matters:
- Standard-rated (5%) — most goods and services.
- Zero-rated (0%) — exports outside the GCC, international transport, certain healthcare, education and newly constructed residential property. VAT is charged at 0% and input VAT is still recoverable.
- Exempt — certain financial services, bare land, local passenger transport, residential lease. No VAT is charged and input VAT is not recoverable.
Zero-rated and exempt are not the same thing. It is the single most common misunderstanding in UAE VAT, and the difference is not academic: a business making zero-rated supplies reclaims the VAT on its costs, and a business making exempt supplies does not.
Registration is mandatory above AED 375,000 of annual taxable supplies, and voluntary above AED 187,500.
Show the working
The UAE VAT formula
vat = net × 0.05Adding VAT to a net amount.gross = net × 1.05The total to invoice.net = gross ÷ 1.05Removing VAT. The one people get wrong.vat = gross − netDerived, so the three figures always reconcile.vat = gross × 5 ÷ 105Same answer by a different route.Worked example. An invoice totals AED 1,050 including VAT. The amount before VAT is 1,050 ÷ 1.05 = AED 1,000. The VAT is 1,050 − 1,000 = AED 50. Note that 5% of 1,050 is 52.50 — which is why subtracting 5% from a VAT-inclusive total gives the wrong answer.
The question everyone gets wrong
Why you cannot just subtract 5% from a VAT-inclusive total
The error is taking AED 1,050 and subtracting 5% to get AED 997.50.
It is wrong because the 5% was calculated on the net amount, not the gross. Going backwards you are removing 5/105 of the total, not 5/100.
| Method | Result on AED 1,050 | Correct? |
|---|---|---|
| Subtract 5% (1,050 × 0.95) | AED 997.50 | No |
| Divide by 1.05 | AED 1,000.00 | Yes |
On a single invoice that is AED 2.50. Across a year of purchase invoices reverse-calculated the same way, it is a VAT return that does not reconcile to the ledger — and that is what an audit finds.
Examples
VAT at 5% on common amounts
| Amount before VAT | VAT at 5% | Total including VAT |
|---|---|---|
| AED 100 | AED 5.00 | AED 105.00 |
| AED 500 | AED 25.00 | AED 525.00 |
| AED 1,000 | AED 50.00 | AED 1,050.00 |
| AED 5,000 | AED 250.00 | AED 5,250.00 |
| AED 10,000 | AED 500.00 | AED 10,500.00 |
| AED 50,000 | AED 2,500.00 | AED 52,500.00 |
| AED 100,000 | AED 5,000.00 | AED 105,000.00 |
| AED 500,000 | AED 25,000.00 | AED 525,000.00 |
Every figure in this table is produced by the same function that powers the calculator above, and is asserted by its test, so the two can never disagree.
Frequently asked questions
UAE VAT questions
How do I calculate 5% VAT in the UAE?
Multiply the amount before VAT by 0.05. On AED 1,000 the VAT is AED 50 and the invoice total is AED 1,050. To get straight to the total, multiply by 1.05 instead.
How do I remove VAT from a total amount?
Divide the total by 1.05. A total of AED 1,050 is AED 1,000 before VAT, and the VAT is the AED 50 difference. Do not subtract 5% from the total — that gives AED 997.50, because the 5% was charged on the net amount rather than the gross.
What is the VAT rate in the UAE?
The standard rate is 5%, unchanged since VAT was introduced on 1 January 2018. Some supplies are zero-rated at 0% and some are exempt, which are not the same thing.
What is the difference between zero-rated and exempt?
Both mean no VAT is charged to the customer, but only zero-rated supplies let you recover the VAT you paid on your own costs. Exports outside the GCC and certain healthcare and education are zero-rated; bare land, residential lease and certain financial services are exempt. Getting the two confused affects what you can reclaim.
When do I have to register for VAT?
Registration is mandatory once taxable supplies exceed AED 375,000 in a twelve-month period, and voluntary above AED 187,500. The thresholds are based on taxable supplies and imports, not profit.
What must a UAE tax invoice show?
A tax invoice needs the words “tax invoice”, the supplier’s name, address and TRN, the date and a sequential number, a description of the supply, the amount before VAT, the VAT rate and amount, and the gross total. Where the customer is registered, their TRN is required too.
Can I recover the VAT I pay on business purchases?
Yes, where the purchase relates to taxable supplies and you hold a valid tax invoice. VAT on exempt activities, and on certain entertainment and motor vehicle costs, is not recoverable.
Does this calculator work for Saudi or other GCC VAT rates?
Yes. Choose the custom rate option and enter the rate you need — 15% for Saudi Arabia, 10% for Bahrain and Oman. The arithmetic is identical; only the rate changes.