Free calculator
UAE VAT calculator
Add 5% VAT to a net price, or work out how much VAT is inside a total you have already been given. Free, instant, no sign-up, and it shows you the arithmetic, because removing VAT is not the same as taking 5% off.
VAT calculator
5%, standard
Amount before VATAED10,000.00
VAT at 5%AED500.00
Total including VATAED10,500.00
AED 10,000.00 × 1.05 = AED 10,500.00
- Standard rate
- 5%
- In force since
- 1 Jan 2018
- Registration threshold
- AED 375,000
Do you need to register for VAT?
Enter your taxable supplies and imports, and see where you stand against the Federal Tax Authority's thresholds.
You must register
You are over AED 375,000, so registration is mandatory. Registering late carries a penalty of AED 10,000, charged for being late, not for owing tax.
How VAT works in the UAE
VAT was introduced by Federal Decree-Law No. 8 of 2017 and has applied since 1 January 2018. The standard rate is 5%. There is no 6%, no 8%, and no discretionary rate. If someone quotes you one, they are guessing.
A registered business charges 5% on its taxable supplies (output tax), reclaims the 5% it paid its own suppliers (input tax), and pays the Federal Tax Authority the difference. The tax is ultimately borne by the final consumer; for a business in the middle, it should be cash-flow neutral, provided the arithmetic and the paperwork are right.
Adding VAT vs removing VAT: the mistake almost everyone makes
Adding VAT is easy: multiply the net amount by 1.05. AED 10,000 becomes AED 10,500.
Removing VAT is where people go wrong. If you have a VAT-inclusive total of AED 10,000, the VAT inside it is not AED 500. You have to divide by 1.05, not subtract 5%:
AED 10,000 ÷ 1.05 = AED 9,523.81 net
VAT inside = AED 10,000 − 9,523.81 = AED 476.19, not AED 500.
It is a difference of AED 23.81 on a single invoice. Across a year of them it is a reconciliation that will not balance, and an FTA return that is quietly wrong.
When you must register for VAT
Registering late carries an administrative penalty of AED 10,000, charged for being late, not for owing tax. Businesses that owed nothing at all have paid it.
- Mandatory: your taxable supplies exceeded AED 375,000 in the past 12 months, or you expect them to in the next 30 days.
- Voluntary: your taxable supplies or expenses exceed AED 187,500.
Not everything is charged at 5%
Some supplies are zero-rated (charged at 0%, and you can still reclaim your input VAT) and a short list are exempt (no VAT charged, and you cannot reclaim input VAT). They sound similar and they are not: exempt is usually the worse of the two, because the VAT your suppliers charged you simply becomes a cost.
When the arithmetic stops being the hard part
Multiplying by 1.05 is not why businesses get penalised. They get penalised for registering late, for classifying a supply wrongly, for reclaiming input tax they were not entitled to, or for failing to apportion it when they make both taxable and exempt supplies. None of that is arithmetic, and none of it shows up until someone looks.
If you are unsure whether you should be registered, what rate applies to what you sell, or whether you have been reclaiming everything you are entitled to, our corporate tax and VAT team will review your position against the actual articles. If you are already compliant, that is the answer you will get.
Your VAT returns, filed for you
Every accounting package from SME up includes your VAT registration and your VAT returns, with the bookkeeping behind them.
From AED 7,245 a year, VAT included
Frequently asked questions
Anything else? Ask on WhatsApp or book a free 15-minute call.
How do I remove 5% VAT from a total?
Divide by 1.05. Do not take 5% off. A VAT-inclusive total of AED 10,000 contains AED 476.19 of VAT, not AED 500, and the net amount is AED 9,523.81. Subtracting 5% is the single most common VAT arithmetic error, and across a year of invoices it produces a return that quietly does not balance.
What is the VAT rate in the UAE?
5%. It was introduced by Federal Decree-Law No. 8 of 2017 and has applied since 1 January 2018. Some supplies are zero-rated (0%) and a short list are exempt, but there is no 6%, no 8%, and no discretionary rate.
When do I have to register for VAT?
Registration is mandatory once your taxable supplies exceed AED 375,000 in the past 12 months, or you expect them to within the next 30 days. Voluntary registration is available above AED 187,500. Registering late carries a penalty of AED 10,000, charged for being late, not for owing tax, so businesses that owed nothing have still paid it.
Is zero-rated the same as exempt?
No, and the difference costs real money. Zero-rated means you charge 0% but can still reclaim the VAT your suppliers charged you. Exempt means you charge nothing and cannot reclaim it, so that VAT becomes a cost you absorb. Exempt sounds like the better deal and is usually the worse one.
This calculator does arithmetic, not advice. It is accurate for the standard 5% rate, but your own VAT position depends on what you sell and to whom. Treat the result as a figure to check, not a filing to rely on.
Not sure where your VAT stands?
Talk it through with a specialist on a free 15-minute call, or message us on WhatsApp. We reply within 2 to 4 hours.
OMC is a reliable and professional company in the UAE. Their team is knowledgeable, responsive, and always willing to help. The quality of their service exceeded my expectations, and the entire experience was smooth from start to finish. Highly recommended.