UAE VAT Calculator: Add or Remove 5% VAT

The UAE charges a standard 5% Value Added Tax (VAT) on most goods and services. This page lets you add or remove 5% VAT from any amount, and explains when VAT applies and how the maths works.

If you run a business, see our guides to UAE VAT registration and the VAT registration threshold.

Quick answer

UAE VAT is a flat 5% standard rate (introduced in January 2018 and administered by the Federal Tax Authority):

• To add VAT to a net price, multiply it by 1.05.
• To remove VAT from a gross (VAT-inclusive) price, divide it by 1.05.
• The VAT portion of a gross price is the gross − net amount.

Calculate 5% VAT

Enter an amount and choose whether it already includes VAT.

How to work out 5% VAT

You have	To find	Formula
Net price (excl. VAT)	VAT amount	net × 0.05
Net price (excl. VAT)	Gross price	net × 1.05
Gross price (incl. VAT)	Net price	gross ÷ 1.05
Gross price (incl. VAT)	VAT amount	gross − (gross ÷ 1.05)

For example, on a net price of AED 1,000 the VAT is AED 50 and the gross price is AED 1,050. On a gross price of AED 1,050, the net is AED 1,000 and the VAT is AED 50.

When does UAE VAT apply?

Most goods and services supplied in the UAE carry the 5% standard rate. Some supplies are treated differently:

• Zero-rated (0%): certain exports, international transport, some healthcare and education, and specific investment-grade precious metals.
• Exempt: certain financial services, residential property (after the first supply), bare land and local passenger transport.

Because the treatment depends on the exact supply, confirm anything unusual with the Federal Tax Authority or your accountant rather than assuming 5% always applies.

Who has to charge VAT?

Only VAT-registered businesses charge VAT. Registration is mandatory once taxable supplies pass the threshold, and voluntary registration is possible above a lower threshold. See our VAT registration threshold guide for the current figures, and the VAT registration guide for the process.

Checking a supplier’s VAT (TRN)

A VAT-registered business shows a 15-digit Tax Registration Number (TRN) on its invoices. You can confirm a TRN is genuine through the Federal Tax Authority’s TRN verification service before paying VAT on an invoice. See how to verify a UAE business licence and TRN.

VAT-inclusive vs VAT-exclusive prices

Knowing whether a price already includes VAT changes the maths. A VAT-exclusive price is the amount before tax – you add 5% on top to get the total (AED 1,000 becomes AED 1,050). A VAT-inclusive price already contains the tax – to find the VAT portion you divide by 21 (or multiply the total by 5/105). For example, an inclusive AED 1,050 contains AED 50 of VAT and AED 1,000 net. In the UAE, displayed retail prices are generally expected to be VAT-inclusive, while B2B quotes are often shown exclusive of VAT – so always check which basis a price is on before you calculate. The calculator above handles both directions for you.

Standard-rated, zero-rated and exempt

Not everything is taxed at 5%. Most goods and services are standard-rated at 5%. Some are zero-rated (0% VAT but still reportable), including exports outside the GCC, certain international transport, and specific healthcare and education. Others are exempt, including certain financial services, bare land, local passenger transport and residential property lease. The practical difference: on zero-rated supplies a business can still recover input VAT, whereas on exempt supplies it generally cannot. If you are unsure how your activity is treated, confirm it before you price your services, because it affects both what you charge and what you can reclaim. To check if you must register at all, use the VAT registration threshold checker.

Need help with VAT or tax registration?

If you are unsure whether to register, how to file, or how VAT interacts with corporate tax, Emirae can connect you with the right support through our services.

FAQ

What is the VAT rate in the UAE?

The UAE standard VAT rate is 5%, introduced in January 2018 and administered by the Federal Tax Authority. Some goods and services are zero-rated (0%) or exempt.

How do I add 5% VAT to a price?

Multiply the net (VAT-exclusive) amount by 1.05. For example, AED 1,000 becomes AED 1,050, of which AED 50 is VAT.

How do I remove VAT from a total?

Divide the gross (VAT-inclusive) amount by 1.05 to get the net amount. The VAT portion is the gross amount minus the net amount.

Is all UAE VAT charged at 5%?

Most supplies are standard-rated at 5%, but some are zero-rated (such as certain exports, healthcare and education) or exempt (such as certain financial services and residential property). Confirm unusual cases with the FTA.

Who charges VAT in the UAE?

Only VAT-registered businesses charge VAT. Registration is mandatory once taxable supplies exceed the mandatory threshold, with voluntary registration available above a lower threshold.