UAE VAT Calculator
Calculate UAE VAT in seconds. Enter any amount in AED and the calculator shows the net, the 5% VAT, and the gross total — whether you need to add VAT to a price or pull the VAT out of a VAT-inclusive figure. The standard rate is pre-filled at 5% and stays editable for special cases.
Adds 5% VAT on top of a VAT-exclusive (net) amount.
- Net (excl. VAT)
- AED 1,000.00
- VAT amount
- AED 50.00
- Gross (incl. VAT)
- AED 1,050.00
On AED 1,000.00, 5% VAT is AED 50.00, for a gross total of AED 1,050.00.
How VAT works in the UAE (5%)
Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 at a standard rate of 5%, administered by the Federal Tax Authority (FTA). It applies to most goods and services supplied in the UAE.
A business must register for VAT once its taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 per year; voluntary registration is available from AED 187,500. Registered businesses charge 5% VAT on taxable sales (output tax) and reclaim the VAT they pay on business purchases (input tax), remitting the difference to the FTA through periodic VAT returns.
Some supplies are zero-rated (0%) — such as qualifying exports, certain healthcare and education, and international transport — while others are exempt (for example, some financial services and bare residential property). Always confirm the correct treatment for your specific supply with the FTA or a tax adviser.
The two calculations
- Add VAT (net → gross): VAT = net × 5%, and gross = net + VAT. On AED 1,000, VAT is AED 50 and the gross is AED 1,050.
- Remove VAT (gross → net): net = gross ÷ 1.05, and VAT = gross − net. On AED 1,050 inclusive, the net is AED 1,000 and the VAT is AED 50.
Frequently asked questions
- The standard VAT rate in the UAE is 5%, in force since 1 January 2018. Certain supplies are zero-rated (0%) or exempt, but most goods and services are taxed at the standard 5% rate.
- To add VAT, multiply the net amount by 5% (×0.05) to get the VAT, then add it to the net for the gross. For example, AED 1,000 × 5% = AED 50 VAT, giving a gross of AED 1,050.
- Divide the VAT-inclusive (gross) amount by 1.05 to get the net amount, then subtract the net from the gross to find the VAT. For example, AED 1,050 ÷ 1.05 = AED 1,000 net, so the VAT is AED 50.
- Registration is mandatory once taxable supplies and imports exceed AED 375,000 in a 12-month period. Voluntary registration is allowed from AED 187,500. Registered businesses must file VAT returns and issue FTA-compliant tax invoices.
- No. This tool gives a quick standard-rate (5%) calculation for general guidance only. Zero-rated, exempt, and reverse-charge supplies are treated differently. For filing and compliance, confirm with the FTA or a qualified tax adviser.
What is the VAT rate in the UAE?
How do I calculate 5% VAT on an amount in AED?
How do I remove VAT from a VAT-inclusive price?
When must a UAE business register for VAT?
Is this VAT calculator a substitute for tax advice?
FTA-compliant VAT invoicing & returns in Odoo
Stop calculating VAT by hand. Oakland configures Odoo to automate 5% VAT on every invoice, generate FTA-compliant tax invoices in AED, and produce your VAT return — ready to file. Talk to UAE’s #1 Odoo Gold Partner.