UAE VAT Calculator
Add 5% VAT to a price, or work out how much VAT is inside a VAT-inclusive amount. Then check whether your business has to register.
VAT amount
AED 500.00
- Net amount
- AED 10,000.00
- VAT
- AED 500.00
- Total including VAT
- AED 10,500.00
10,000 × 5% = 500
Do I need to register for VAT?
Your position
Voluntary registration available
Estimates only, based on UAE law and FTA guidance as of November 2026. Not tax or legal advice.
How UAE VAT is calculated
The standard rate of VAT in the UAE is 5%. The arithmetic depends on whether your starting figure includes VAT or not.
| You know | To find the VAT | Example (AED) |
|---|---|---|
| The net price | Net × 5% | 10,000 × 5% = 500, total 10,500 |
| The VAT-inclusive price | Gross × 5 ÷ 105 | 10,500 × 5 ÷ 105 = 500, net 10,000 |
A common mistake is taking 5% of a VAT-inclusive figure. On AED 10,500 that gives AED 525, which overstates the VAT by AED 25. Always divide by 105 when the price already includes VAT.
Zero-rated and exempt supplies
Some supplies are zero-rated (0% VAT, but input VAT can still be recovered), such as most exports, international transport, certain education and healthcare, and the first supply of new residential property. Others are exempt (no VAT charged and related input VAT generally not recoverable), such as most local passenger transport, bare land and certain financial services. The label matters: getting it wrong changes how much VAT you can recover.
Registration thresholds
- Mandatory: taxable supplies and imports above AED 375,000 in the previous 12 months, or expected to exceed it in the next 30 days. Apply within 30 days.
- Voluntary: taxable supplies and imports, or taxable expenses, above AED 187,500.
- Below AED 187,500: no registration, so no VAT charged and none recovered.
Late registration attracts a penalty, so it pays to watch the rolling 12-month figure every month rather than once a year.
Sources
Frequently asked questions
What is the VAT rate in the UAE?
The standard VAT rate in the UAE is 5%. Some supplies are zero-rated at 0% and some are exempt.
How do I remove VAT from a price in the UAE?
Multiply the VAT-inclusive amount by 5 and divide by 105 to get the VAT. Subtract that from the total to get the net amount. For example, AED 1,050 includes AED 50 VAT and AED 1,000 net.
When must a UAE business register for VAT?
When taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to exceed it in the next 30 days. Voluntary registration is available above AED 187,500.
Is VAT charged on exports from the UAE?
Most exports of goods and services outside the GCC implementing states are zero-rated, provided the export conditions and evidence requirements are met.
What is the difference between zero-rated and exempt?
Both mean no VAT on the sale. With zero-rated supplies you can still recover the VAT on related costs; with exempt supplies you generally cannot.
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