VAT CALCULATOR

UAE VAT Calculator — Add or Remove 5% VAT

Add 5% VAT to a net amount, extract VAT from a gross amount, or use Advanced mode for bulk invoicing and VAT return preparation. UAE VAT has been in effect since 1 January 2018 under Federal Decree-Law No. 8 of 2017.

📅 What's New in 2026

E-invoicing mandatory: Mandatory B2B and B2G e-invoicing starts July 2026 for large taxpayers (phase 1). All invoices must comply with PEPPOL standards.

EmaraTax platform: All VAT registrations, returns, and refund claims are now exclusively on EmaraTax. Ensure you have migrated your account.

Zero-rated (0% VAT)

VAT charged at 0% but the supplier can reclaim input VAT. Examples: exports, international transport, qualifying education & healthcare, newly constructed residential property (first sale).

Exempt (no VAT)

No VAT charged and the supplier cannot reclaim input VAT on related costs. Examples: residential property (subsequent supply), bare land, local passenger transport, certain financial services.

Mode

Amount (excl. VAT)

Enter net sale price. We add 5% VAT.

Breakdown

VAT amount (5%)

AED 50.00

Net Amount (excl. VAT)AED 1,000.00

VAT (5%)AED 50.00

Gross Total (incl. VAT)AED 1,050.00

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UAE VAT Explained: 5% Rate and How to Calculate It

The UAE introduced Value Added Tax (VAT) on 1 January 2018 under Federal Decree-Law No. 8 of 2017, making it one of the most significant shifts in the country's tax history. The standard VAT rate is 5% — among the lowest in the world for a consumption tax — and applies to the supply of most goods and services in the UAE.

Mandatory VAT registration is required when a business's taxable supplies and imports in any 12-month period exceed AED 375,000. Missing the registration deadline triggers an immediate AED 20,000 administrative penalty with no grace period. Voluntary registration is available for businesses whose taxable supplies exceed AED 187,500 but fall below AED 375,000 — useful for businesses that want to reclaim input VAT on purchases.

Not all supplies are taxed at 5%. Zero-rated supplies are taxed at 0% VAT, meaning no VAT is charged to the customer, but the supplier can still reclaim input VAT on related costs. Zero-rated categories include exports of goods outside the UAE, international transport, qualifying education and healthcare services, and the first supply of residential property. Exempt supplies are different — no VAT is charged, but input VAT on related costs cannot be reclaimed. Exempt categories include the supply of bare land, local passenger transport, and certain financial services.

How to add UAE VAT: Multiply the net (pre-VAT) amount by 1.05. For example, AED 1,000 net becomes AED 1,050 including VAT (AED 50 VAT). How to remove UAE VAT: Divide the gross (VAT-inclusive) amount by 1.05. AED 1,050 gross divided by 1.05 = AED 1,000 net, with AED 50 VAT. This is also called "extracting" or "backing out" VAT.

VAT-registered businesses must file quarterly VAT returns through the FTA's EmaraTax portal within 28 days of the tax period end. Large taxpayers may be required to file monthly. Each return reports output VAT (charged to customers) and input VAT (paid on purchases). The net amount — output minus input — is either payable to the FTA or refundable if input exceeds output.

From July 2026, the UAE is rolling out mandatory B2B and B2G e-invoicing for large taxpayers in phase 1, based on PEPPOL standards. All tax invoices must comply with the format and transmission requirements set by the FTA. Non-compliance will attract penalties once the phased mandate applies to your business size.

UAE VAT Questions Answered

What is the VAT rate in UAE?

The standard UAE VAT rate is 5%, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Some supplies are zero-rated (0% VAT charged, input VAT reclaimable) and others are exempt (no VAT charged, input VAT not reclaimable). The 5% rate applies to most goods and services supplied in the UAE.

How do I add 5% VAT to a price?

Multiply the net amount by 1.05. Example: AED 500 net × 1.05 = AED 525 gross (including AED 25 VAT). On a tax invoice, you must show the net amount, the VAT amount, and the gross amount separately. The VAT amount is 5% of the net figure.

How do I remove VAT from a total price?

Divide the VAT-inclusive (gross) amount by 1.05. Example: AED 525 gross ÷ 1.05 = AED 500 net. The VAT component is the gross amount minus the net: AED 525 − AED 500 = AED 25. This is sometimes called "backing out" or "extracting" VAT, used when you have a gross price and need to find the VAT element.

Do I need to register for VAT in UAE?

VAT registration is mandatory when your taxable supplies and imports in any 12-month period exceed AED 375,000. You have 30 days from the date you crossed the threshold to register. Voluntary registration is available from AED 187,500. Failure to register when mandatory triggers an AED 20,000 penalty under Cabinet Decision No. 74 of 2017.

What goods are exempt from VAT in UAE?

Exempt supplies include: bare land; local passenger transport; financial services that do not charge an explicit fee (e.g. net margin products like foreign exchange); residential property (after the first supply). Exempt businesses cannot reclaim input VAT on costs related to exempt activities. Zero-rated supplies — which are different — include exports, international transport, qualifying healthcare and education.

How UAE VAT Works

The UAE applies a standard VAT rate of 5% on most goods and services. Some supplies are zero-rated (exports, international transport, certain education and healthcare) and others are exempt (residential property after first supply, local passenger transport, certain financial services).

•Mandatory registration: taxable supplies exceed AED 375,000 per year.
•Voluntary registration: available if supplies exceed AED 187,500.
•Returns filed quarterly (or monthly for large taxpayers) via EmaraTax.
•Late payment: 14% per annum on unpaid VAT from 14 April 2026 (CD 129/2025).

UAE VAT FAQs

What is the UAE VAT rate?

The standard UAE VAT rate is 5%, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Some supplies are zero-rated (0% VAT, input tax reclaimable) including exports and international transport. Others are exempt including residential property and certain financial services.

When must I register for VAT in UAE?

VAT registration is mandatory when your taxable supplies exceed AED 375,000 in the previous 12 months. Voluntary registration is available if supplies exceed AED 187,500. Failure to register on time attracts an AED 20,000 penalty.

How do I file a VAT return in UAE?

VAT returns are filed through the FTA's EmaraTax portal. Most businesses file quarterly, within 28 days of the end of each tax period. The return must report output tax and input tax, with the net amount payable to or reclaimable from the FTA.

What is zero-rated VAT in UAE?

Zero-rated supplies are taxed at 0% VAT, meaning no VAT is charged to the customer, but the supplier can still reclaim input VAT on costs. Examples: exports, international transport, qualifying education and healthcare.

What is the difference between zero-rated and exempt supplies?

Zero-rated: 0% VAT charged, but input VAT on related costs is fully reclaimable. Exempt: no VAT charged, but input VAT on related costs cannot be reclaimed. This distinction matters for partially exempt businesses.

What is e-invoicing and does it apply to me?

The UAE is rolling out mandatory B2B and B2G e-invoicing starting July 2026 for large taxpayers (phase 1). All tax invoices must comply with PEPPOL-based standards. Check the FTA website for current phase applicability.

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