VAT Calculator UAE
Use our free UAE VAT calculator to instantly add or remove VAT from any amount. Whether you are a business owner in Dubai, a freelancer in Abu Dhabi, or a finance professional managing invoices across the Emirates, this online VAT calculator UAE gives you fast, accurate results in seconds.
The standard VAT rate in the UAE is 5%, introduced on 1 January 2018 by the Federal Tax Authority (FTA). Our calculator handles both VAT-inclusive and VAT-exclusive calculations — Our vat calculator uae tool is trusted by business owners, accountants, and freelancers across Dubai, Abu Dhabi, and Sharjah for fast, reliable VAT figures — no spreadsheet needed.
Need VAT figures for other countries? Try our VAT Calculator Ireland, South Africa VAT Calculator, or UK VAT Calculator.
Online VAT Calculator UAE
UAE VAT Calculation Formula
The UAE Federal Tax Authority applies VAT at a standard rate of 5%. Whether you need to add VAT to a net price or remove VAT from a gross amount, the formulas below make it straightforward.
Adding VAT (VAT Inclusive)
Example: Net price = AED 100
VAT Amount = AED 100 × 0.05 = AED 5.00
Gross (incl. VAT) = AED 105.00
Removing VAT (Reverse VAT)
Example: Gross price = AED 105
Net (excl. VAT) = AED 105 ÷ 1.05 = AED 100.00
VAT Amount = AED 105 − AED 100 = AED 5.00
Zero-Rated VAT
Example: Export goods = AED 500
VAT Amount = AED 0.00
Gross = AED 500.00
How to Use the UAE VAT Calculator
Our online VAT calculator UAE is designed to be fast and simple. Follow these four steps to get your VAT figures instantly.
Enter Your Amount
Type your net or gross amount in AED into the amount field. This is the price before or after VAT depending on your calculation.
Select VAT Rate
Choose 5% for standard-rated goods and services, or 0% for zero-rated items such as exports and international transport.
Add or Remove VAT
Click Add VAT to calculate the gross price including VAT. Click Remove VAT to extract the net price from a VAT-inclusive amount.
Copy Your Results
Your net amount, VAT amount, and gross amount appear instantly. Use the Copy Results button to paste figures directly into your invoice or spreadsheet.
UAE VAT Rates 2026
The UAE Federal Tax Authority (FTA) applies three VAT treatments to goods and services. The standard rate of 5% has remained unchanged since VAT was first introduced on 1 January 2018. Here is a full breakdown of current UAE VAT rates for 2026.
| VAT Rate | Type | Applies To |
|---|---|---|
| 5% | Standard Rate | Most goods and services supplied in the UAE — retail, hospitality, professional services, electronics, clothing, food (non-basic), and more |
| 0% | Zero Rate | Exports outside the GCC, international transport, certain aircraft and ships, investment-grade precious metals (99%+ purity), new residential properties (within 3 years of completion), certain education and healthcare services |
| Exempt | VAT Exempt | Certain financial services (as defined by FTA regulations), residential property sales and leases, bare undeveloped land, local passenger transport services |
VAT on Goods and Services in the UAE
Understanding how UAE VAT applies across different categories is essential for accurate invoicing and compliance. Below is a breakdown of standard-rated, zero-rated, and exempt goods and services under the UAE VAT Law. If you are calculating VAT for similar transactions in other countries, our UK VAT Calculator and VAT Calculator Ireland tools may also be useful.
Standard Rated — 5% 5%
- Retail goods and consumer products
- Hotel and hospitality services
- Restaurant and food service (prepared food)
- Professional and consultancy services
- Electronics, appliances, and technology
- Clothing and footwear
- Telecommunications services
- Entertainment and leisure activities
- Commercial property sales and rentals
- Oil and gas (domestic supply)
Zero Rated — 0% 0%
- Exports of goods outside the GCC
- International transport of passengers and goods
- Aircraft and ships used for commercial transport
- Investment-grade precious metals (99%+ purity)
- New residential properties (first supply within 3 years)
- Certain education services and related goods
- Certain healthcare services and medical equipment
- Qualifying rescue aircraft and rescue boats
VAT Exempt Exempt
- Financial services (as defined by FTA)
- Life insurance and reinsurance services
- Residential property rentals and sales
- Bare undeveloped land transactions
- Local passenger transport (buses, taxis, metro)
VAT Registration in the UAE
VAT registration in the UAE is managed by the Federal Tax Authority (FTA). Whether registration is mandatory or voluntary depends on your business's annual taxable turnover. Here are the three registration thresholds that apply in 2026.
Mandatory Registration
If your annual taxable turnover exceeds AED 375,000, you must register for VAT with the FTA. Failure to register on time can result in penalties.
Voluntary Registration
Businesses with annual turnover between AED 187,500 and AED 375,000 may register voluntarily. This allows you to reclaim input VAT on business expenses.
Registration Not Required
If your annual taxable turnover is below AED 187,500, VAT registration is not required. You cannot charge VAT or reclaim input VAT at this stage.
Expert VAT Tips for UAE Businesses
None of the major UAE VAT calculator competitors cover practical VAT tips — so here is what every UAE business owner and finance professional should know to stay FTA-compliant and maximise VAT efficiency in 2026.
Always Issue a Valid Tax Invoice
Every standard-rated supply must be accompanied by a FTA-compliant tax invoice showing your TRN, the VAT amount, and the date of supply. Missing details can invalidate your customer's input VAT claim.
Reclaim Input VAT on Business Costs
If you are VAT-registered, you can reclaim the VAT paid on business purchases — from office supplies to professional services. Keep all tax invoices as supporting evidence for your VAT return.
Know the Difference: Zero-Rated vs Exempt
Zero-rated supplies (like exports) still allow you to reclaim input VAT. Exempt supplies (like residential property) do not. Getting this wrong affects your VAT recovery and your FTA return.
Apply Partial Exemption Rules Carefully
If your business makes both taxable and exempt supplies, you can only reclaim a portion of your input VAT. The FTA's partial exemption method determines how much you can recover — get professional advice if this applies to you.
File VAT Returns on Time
UAE VAT returns are typically due quarterly, within 28 days of the end of the tax period. Late filing attracts FTA penalties. Set calendar reminders well in advance of each deadline.
Register Before You Hit the Threshold
Monitor your taxable turnover regularly. You must apply for VAT registration within 30 days of exceeding AED 375,000. Late registration penalties from the FTA can be substantial.
Common UAE VAT Mistakes to Avoid
These are the most frequent VAT errors UAE businesses make — and how to avoid them. Our South Africa VAT Calculator page covers similar pitfalls for businesses operating across borders.
Confusing Zero-Rated and Exempt Supplies
Treating exempt supplies as zero-rated (or vice versa) leads to incorrect VAT recovery claims and potential FTA penalties on audit.
Charging VAT on Exported Goods
Exports outside the GCC are zero-rated — not standard-rated. Charging 5% VAT on exports is an error that overcharges your customer and complicates your VAT return.
Missing the Registration Deadline
Many businesses only register after they have already exceeded the AED 375,000 threshold. The FTA requires registration within 30 days — late registration carries fixed penalties.
Invalid Tax Invoices
Issuing invoices without a TRN, missing VAT breakdown, or incorrect supply date means your customer cannot reclaim input VAT — damaging your business relationships.
Incorrect Partial Exemption Calculations
Businesses with mixed taxable and exempt supplies often overclaim input VAT. The FTA audits this closely — always apply the correct apportionment method.
Not Keeping Adequate VAT Records
The FTA requires VAT records to be kept for a minimum of 5 years. Businesses that cannot produce records on audit face penalties regardless of whether the VAT was correctly paid.
History of VAT in the UAE
The UAE was one of the last major economies to introduce a consumption tax. VAT was implemented as part of a broader GCC-wide fiscal reform to reduce dependence on oil revenues and diversify government income. Here is a timeline of how UAE VAT came to be and how it has evolved through to 2026.
GCC VAT Framework Decision and Agreement
In December 2015, the GCC Supreme Council at its 36th meeting in Riyadh agreed in principle to impose VAT at 5% across all member states. In June 2016, all six GCC members — UAE, Saudi Arabia, Bahrain, Kuwait, Oman, and Qatar — formally signed the Common VAT Agreement, establishing the unified legal framework for VAT implementation across the Gulf region.
UAE VAT Law Enacted
The UAE Federal Government issued Federal Decree-Law No. 8 of 2017 on Value Added Tax, establishing the legal framework for VAT in the UAE. The Federal Tax Authority (FTA) was also established during this period to administer and enforce UAE tax laws, including VAT and Excise Tax.
VAT Launched in the UAE at 5%
VAT was officially introduced in the UAE on 1 January 2018 at a standard rate of 5% — one of the lowest VAT rates in the world. Saudi Arabia launched on the same date. The UAE became one of the first GCC states to implement VAT, generating significant new government revenue while maintaining a business-friendly low rate.
Bedding In Period — FTA Enforcement Ramps Up
The FTA focused heavily on VAT registration compliance, tax invoice requirements, and VAT return accuracy during this period. Thousands of businesses registered for VAT and adjusted their accounting systems. The FTA issued detailed guidance on zero-rated and exempt categories, partial exemption, and the requirements for valid tax invoices.
VAT Law Amendments and Clarifications
The UAE government issued amendments to the VAT Decree-Law, clarifying rules around deemed supplies, tax groups, input tax recovery, and the treatment of vouchers and e-commerce transactions. These updates aligned UAE VAT law more closely with international best practice and addressed gaps identified during the first years of implementation.
Corporate Tax Introduced — VAT Rate Unchanged
The UAE introduced a federal Corporate Tax of 9% on business profits above AED 375,000, effective for financial years starting on or after 1 June 2023. This is entirely separate from VAT — the UAE VAT rate remained at 5% and was not affected by the corporate tax introduction. Note: some competitor websites incorrectly list 9% as a UAE VAT rate — this is wrong.
UAE VAT Rate Remains at 5%
As of 2026, the UAE standard VAT rate remains 5% — unchanged since launch in 2018. The UAE continues to have one of the most competitive VAT rates globally. Businesses operating across borders should also check current rates using our UK VAT Calculator, VAT Calculator Ireland, and South Africa VAT Calculator.
UAE VAT Calculator — Frequently Asked Questions
Everything you need to know about VAT in the UAE — from how to calculate 5% VAT in Dubai to registration thresholds and the difference between zero-rated and exempt supplies.
To calculate VAT in the UAE, multiply the net price by 0.05 (5%) to get the VAT amount, then add it to the net price to get the gross total. For example: a product priced at AED 200 has a VAT amount of AED 10 (200 × 0.05), making the total AED 210. To remove VAT from a gross price, divide by 1.05 — so AED 210 ÷ 1.05 = AED 200 net. Use our UAE VAT calculator above to do this instantly without manual calculations.
You can calculate your VAT in three simple steps. Step 1: Enter your amount in AED in the calculator above. Step 2: Select your VAT rate — 5% for standard-rated supplies or 0% for zero-rated supplies. Step 3: Click Add VAT if you want to calculate the gross price including VAT, or Remove VAT if you want to extract the net price from a VAT-inclusive amount. Your VAT amount, net amount, and gross amount are displayed instantly. You can also copy the results directly to your clipboard for invoicing.
To calculate 15% VAT, multiply the net price by 0.15 to get the VAT amount, then add it to the net price. For example: AED 100 × 0.15 = AED 15 VAT, making the gross total AED 115. To remove 15% VAT from a gross price, divide by 1.15. However, it is important to note that 15% is not the VAT rate in the UAE — the UAE standard VAT rate is 5%, introduced on 1 January 2018. A 15% VAT rate applies in countries such as South Africa. For UAE VAT calculations, use the 5% rate above.
5% VAT in Dubai refers to the standard Value Added Tax rate applied across the UAE, including Dubai, Abu Dhabi, Sharjah, and all seven Emirates. VAT at 5% was introduced on 1 January 2018 by the Federal Tax Authority (FTA) and applies to most goods and services — retail, hospitality, restaurants, professional services, electronics, and more. Dubai does not have a separate VAT rate — the 5% rate is federal and applies uniformly across all Emirates. To calculate 5% VAT on any amount in Dubai, simply multiply by 1.05 to add VAT, or divide by 1.05 to remove it.
The UAE VAT rate in 2026 is 5% — unchanged since VAT was first introduced on 1 January 2018. This is one of the lowest VAT rates in the world. There are three VAT treatments in the UAE: standard rate (5%) which applies to most goods and services; zero rate (0%) which applies to exports, international transport, and certain education and healthcare services; and exempt which applies to certain financial services, residential property, bare land, and local passenger transport. The UAE also has a separate Corporate Tax of 9% on business profits — this is not a VAT rate and should not be confused with VAT.
To remove 5% VAT from a VAT-inclusive price in the UAE, divide the gross amount by 1.05. This gives you the net price excluding VAT. The VAT amount is the difference between the gross and net figures. For example: a gross price of AED 315 ÷ 1.05 = AED 300 net. The VAT amount is AED 315 − AED 300 = AED 15. Use the Remove VAT button in our online VAT calculator UAE above to do this instantly for any amount.
VAT registration in the UAE is managed by the Federal Tax Authority (FTA). Businesses with annual taxable turnover exceeding AED 375,000 must register for VAT — this is mandatory registration. Businesses with turnover between AED 187,500 and AED 375,000 may register voluntarily, which allows them to reclaim input VAT on business costs. Businesses below AED 187,500 are not required to register. Once registered, businesses must file quarterly VAT returns and issue FTA-compliant tax invoices showing their Tax Registration Number (TRN).
Both zero-rated and exempt supplies result in no VAT being charged to the customer, but they are treated very differently for VAT recovery purposes. With zero-rated supplies (such as exports outside the GCC, international transport, and certain healthcare services), the supplier can still reclaim input VAT paid on their business costs. With exempt supplies (such as residential property rentals, bare land, certain financial services, and local passenger transport), the supplier cannot reclaim input VAT at all. Getting this distinction wrong on your VAT return can lead to overclaiming input VAT and FTA penalties. Businesses making both taxable and exempt supplies must apply partial exemption rules.
For official UAE VAT guidance, visit the Federal Tax Authority (FTA).