🧾 UAE VAT Calculator (5%)
How UAE VAT Is Calculated
The UAE standard VAT rate is 5%, administered by the Federal Tax Authority since 1 January 2018.
- Adding VAT: VAT = net price × 0.05, and total = net price × 1.05. AED 1,000 + 5% = AED 1,050.
- Removing VAT from a total: net price = total ÷ 1.05, and VAT = total − net price. From AED 1,050, the VAT is AED 50. A common mistake is to take 5% of the total, which gives AED 52.50 — slightly too much.
Retail prices in the UAE must be shown including VAT, so the shelf price is what you pay. Business invoices from VAT-registered suppliers show the net amount, the VAT and the total separately, along with the supplier's Tax Registration Number (TRN).
Not Everything Is 5%
Some supplies are zero-rated (0% VAT), such as core education, basic healthcare, international transport and exports, and some are exempt, such as residential rent, bare land, local passenger transport and margin-based financial services. Set the price to 0 VAT in those cases — this calculator is for standard-rated items.
Registration is a separate question
This tool calculates VAT amounts; it does not decide whether a business must register or whether a supply is taxable. The FTA mandatory threshold considers the previous 12 months or anticipated supplies and imports in the next 30 days. Voluntary registration can also consider taxable expenses. The AED 375,000 mandatory threshold does not apply to foreign businesses.
Official source and related guides
FTA VAT registration guidance (registration details checked 7 October 2026). For a practical breakdown, read how to read a UAE tax invoice and our UAE VAT guide for everyday purchases.