Home/VAT Calculator
Free legal toolUAE VAT Calculator
Free tool. Add the 5% UAE VAT to a net price, or reverse it out of a VAT-inclusive total. Standard rate under Federal Decree-Law No. 8 of 2017 and the Federal Tax Authority. No sign-up; runs in your browser.
How UAE VAT is calculated
Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 under Federal Decree-Law No. 8 of 2017 on Value Added Tax (as amended), administered by the Federal Tax Authority (FTA). The standard rate is 5% and remains in force for 2026. Most goods and services supplied in the UAE are taxed at this standard rate unless they are specifically zero-rated or exempt.
There are two everyday calculations. To ADD VAT to a net (pre-tax) price, multiply the net amount by 5% to get the VAT, then add it to the net to get the gross: VAT = net × 0.05, and gross = net × 1.05. To REMOVE (reverse) VAT from a gross, VAT-inclusive total, divide the gross by 1.05 to recover the net, then subtract the net from the gross to find the VAT: net = gross ÷ 1.05, and VAT = gross − net. This calculator shows the net, the VAT, and the gross in both modes.
Registration is tied to taxable turnover, not to this calculation. A business must register for VAT once its taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 over the preceding 12 months. Voluntary registration is available from a turnover (or taxable expenses) of AED 187,500. Registered businesses charge VAT on their taxable supplies (output tax) and can generally recover the VAT they pay on business costs (input tax).
Not everything carries 5% VAT. Zero-rated supplies are taxable at 0% — examples include exports of goods and services outside the GCC, international transport, the first supply of new residential property within three years of completion, qualifying healthcare and education, and investment-grade precious metals. Exempt supplies fall outside the VAT system entirely — examples include certain financial services, the subsequent supply of residential property, bare land, and local passenger transport. The distinction matters because zero-rated suppliers can usually reclaim input VAT while exempt suppliers generally cannot. Where a supply might fall into more than one category, confirm the treatment with the FTA before relying on a figure.
Frequently asked questions
What is the UAE VAT rate in 2026?
- The standard UAE VAT rate is 5% and remains in force for 2026 under Federal Decree-Law No. 8 of 2017 (as amended). Some supplies are zero-rated (0%) or exempt instead — see the explainer above. Check the Federal Tax Authority for the treatment of a specific supply.
What is the difference between adding and removing VAT?
- Adding VAT starts from a net (pre-tax) price and puts 5% on top: VAT = net × 0.05 and gross = net × 1.05. Removing (reversing) VAT starts from a VAT-inclusive total and works backwards: net = gross ÷ 1.05 and VAT = gross − net. Use 'Add' for a quote before tax, and 'Remove' to find the VAT already inside a receipt total.
When does a business have to register for UAE VAT?
- Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the preceding 12 months. Voluntary registration is available from AED 187,500 of taxable turnover or taxable expenses. These thresholds are about your turnover, not about a single invoice — confirm current rules with the FTA.
What is the difference between zero-rated and exempt?
- Zero-rated supplies are taxable at 0% (for example exports outside the GCC, international transport, qualifying healthcare and education, the first supply of new residential property within three years, and investment-grade precious metals) and suppliers can usually recover input VAT. Exempt supplies (for example certain financial services, subsequent residential supply, bare land, and local passenger transport) sit outside VAT, and suppliers generally cannot recover input VAT. If a supply could fall into either category, defer to the FTA.
Are the UAE VAT penalty rules changing?
- Yes — administrative penalty rules are being updated under Cabinet Decision No. 129 of 2025, expected to take effect on 14 April 2026. The 5% standard rate and the calculation formulas above are unchanged; the changes concern penalties for non-compliance. Confirm the current penalty regime on the Federal Tax Authority portal.
This is an estimate, not tax or legal advice
This calculator applies the 5% UAE standard rate to add or reverse VAT. It does not decide whether a supply is standard-rated, zero-rated, or exempt, and it does not address place of supply, the reverse-charge mechanism, partial input-tax recovery, or registration obligations. Penalty rules are also being updated under Cabinet Decision No. 129 of 2025 (expected 14 April 2026). For any figure you will rely on, verify the treatment with the Federal Tax Authority or a qualified UAE tax adviser.
Need a UAE tax or VAT lawyer?
Connect directly with bar-licensed UAE specialists who handle VAT registration, FTA assessments, voluntary disclosures, and tax disputes. Free to browse the directory; message a lawyer directly.
More UAE legal calculators
Corporate Tax Calculator
Estimate UAE corporate tax under the 0% / 9% structure (Federal Decree-Law No. 47 of 2022) in seconds.
Open toolDubai Rent Increase Calculator
See the maximum legal rent increase under RERA Decree 43 by comparing your rent to the market average.
Open toolVisa Overstay Calculator
Estimate your UAE visa overstay fine under the ICP Unified Fine System — AED 50 per day. Enter your overstay days and visa type.
Open toolAuthoritative source:Federal Tax Authority (FTA)
Last updated: 9 June 2026