VAT Calculator — UAE
Calculate VAT in the UAE at the standard rate of 5%. Add VAT to a net price or remove VAT from a gross price. The VAT portion, net amount, and gross amount are all shown — useful for invoicing, pricing, and accounting.
VAT in the UAE
VAT (Value Added Tax) was introduced in the UAE on 1 January 2018 at a standard rate of 5%. It is one of the lowest VAT rates in the world — compared to 15% in Saudi Arabia, 20% in the UK, and 19–22% in most of Europe. The 5% rate has not changed since introduction.
The Federal Tax Authority (FTA) administers VAT in the UAE. Businesses with annual taxable turnover above AED 375,000 must register for VAT. Between AED 187,500 and AED 375,000, registration is optional. Below AED 187,500, no VAT registration is required. VAT-registered businesses must file returns quarterly or monthly, depending on turnover.
UAE VAT Formula
Adding VAT (net → gross):
VAT = Net × (Rate ÷ 100)
Gross = Net + VAT
Removing VAT (gross → net):
Net = Gross ÷ (1 + Rate ÷ 100)
VAT = Gross − Net
The standard rate is 5%. Some supplies are zero-rated (0%): exports of goods and services, international transport, certain healthcare and education services, and the first sale of residential property. Some supplies are exempt (no VAT charged, no input VAT recoverable): certain financial services, bare land, and local passenger transport.
Worked Example
Adding VAT to AED 1,000:
VAT = 1,000 × 5% = AED 50
Gross = 1,000 + 50 = AED 1,050
Removing VAT from AED 1,050:
Net = 1,050 ÷ 1.05 = AED 1,000
VAT = 1,050 − 1,000 = AED 50
Note: VAT as % of gross is 4.76% (50 ÷ 1,050), not 5% — this is a common mistake. If you subtract 5% from the gross, you get AED 997.50, which is not the correct net. You must divide by 1.05, not subtract 5%.
VAT Registration and Filing in the UAE
- Mandatory registration — annual taxable turnover above AED 375,000
- Voluntary registration — annual taxable turnover between AED 187,500 and AED 375,000
- No registration — below AED 187,500
- Quarterly filing — businesses with annual turnover above AED 150 million can file monthly; all others file quarterly
- Filing deadlines — 28 days after the end of the tax period (e.g., Q1 Jan–Mar must be filed by 28 April)
- Payment — same as filing deadline
- Penalties — AED 1,000 for late registration, AED 500–1,000 for late filing, plus 2–4% per month on unpaid tax
Frequently Asked Questions
What is the current VAT rate in the UAE?
The standard VAT rate in the UAE is 5%, introduced on 1 January 2018 and unchanged since. It is one of the lowest VAT rates globally — Saudi Arabia is 15%, UK is 20%, EU average is around 21%. The UAE deliberately kept the rate low to minimise the impact on consumers and businesses.
What goods are zero-rated or exempt?
Zero-rated (0%): exports of goods and services, international transport, certain healthcare and education services, the first sale of residential property, and investment-grade precious metals. Exempt: certain financial services, bare land, and local passenger transport. Zero-rated means you can recover input VAT; exempt means you cannot.
How do I register for VAT in the UAE?
VAT registration is done through the FTA portal (tax.gov.ae). You need your trade licence, Emirates ID or passport, bank account details, and information about expected turnover. Once registered, you receive a Tax Registration Number (TRN) that must be quoted on all invoices. Registration is mandatory once turnover exceeds AED 375,000 in a 12-month period.
How often must I file VAT returns in the UAE?
Most businesses file quarterly. Only large businesses with annual turnover above AED 150 million may file monthly. Filing deadlines are 28 days after the end of the tax period — significantly shorter than Saudi Arabia (last day of following month). Late filing penalties are AED 500 (first time) or AED 1,000 (repeat), plus a monthly penalty of 2–4% on unpaid tax.
Can I claim back input VAT?
Yes — VAT-registered businesses can claim back input VAT on business purchases used in taxable supplies. The VAT return nets output VAT (collected) against input VAT (paid). If input VAT exceeds output VAT, you can claim a refund. Some input VAT is blocked (e.g., VAT on entertainment, personal expenses, non-business purchases). Keep proper tax invoices for all claims.
Why does the calculator show VAT as 4.76% of the gross amount, not 5%?
Because 5% of the net amount is not 5% of the gross amount. On an AED 1,000 net + 5% VAT = AED 1,050 gross, the VAT is AED 50. As a percentage of the gross, that is 50 ÷ 1,050 = 4.76%. This is mathematically correct and is why you must divide by 1.05 (not subtract 5%) when removing VAT from a gross amount. The 4.76% figure is only useful for understanding VAT's share of the gross; for calculation, always use the 5% rate on the net.