UAE VAT calculator
Rules checked 6 Oct 2026
Uses the standard rate of 5%. Zero-rated and exempt supplies carry no VAT.
How to calculate UAE VAT
The standard VAT rate in the UAE is 5%, and it has been since VAT started on 1 January 2018. There are only two calculations you ever need.
Adding VAT to a price. Multiply the price before VAT by 0.05 to get the VAT, then add it on.
- Price before VAT: AED 2,400
- VAT: 2,400 × 0.05 = AED 120
- Total: AED 2,520
Taking VAT out of a total. When a price already includes VAT, divide by 1.05 to get the amount before VAT. The VAT is the difference. Another way to write this is total × 5 ÷ 105.
- Total including VAT: AED 2,520
- Before VAT: 2,520 ÷ 1.05 = AED 2,400
- VAT: AED 120
A common mistake is to take 5% of the VAT-inclusive total. On AED 2,520 that gives AED 126, which overstates the VAT by AED 6. The difference grows with the amount, so always divide by 1.05 when working backwards.
When you charge 0% or no VAT at all
Not every sale carries 5%. Two groups behave differently, and the difference matters for what you can reclaim.
| Type | VAT charged | Can you reclaim VAT on related costs? | Examples |
|---|---|---|---|
| Standard-rated | 5% | Yes | Most goods and services |
| Zero-rated | 0% | Yes | Exports outside the GCC, international transport, certain education and healthcare, first supply of new residential property |
| Exempt | None | No | Certain financial services, residential rent after the first supply, bare land, local passenger transport |
Zero-rated and exempt both mean your customer pays no VAT, but they are not the same thing for you. A zero-rated business can still recover the VAT it pays on its costs; an exempt one cannot. Our guide to zero-rated and exempt supplies goes through the main categories.
Worked examples
A freelancer invoicing a client. A registered designer agrees a fee of AED 15,000 before VAT. The invoice shows AED 15,000, VAT of AED 750, and a total of AED 15,750.
A shop receipt. A customer pays AED 105 for an item, VAT included. The shop’s sales figure is AED 100 and it owes AED 5 of VAT on the sale.
A supplier quote that “includes VAT”. A quote of AED 47,250 inclusive works out to AED 45,000 before VAT and AED 2,250 VAT. If you are VAT-registered and the cost relates to taxable sales, you can usually reclaim the AED 2,250.
Rounding
Calculate VAT on each line or on the invoice total, and round to two decimal places. The FTA accepts either approach as long as you apply it consistently. The calculator rounds to the nearest fils.
Frequently asked questions
Do I charge VAT if I am not registered?
No. Only VAT-registered businesses may charge VAT and show it on an invoice. If your sales are approaching AED 375,000 a year, check whether you need to register with our VAT registration checker.
Is VAT the same across the GCC?
No. The UAE charges 5%. Saudi Arabia charges 15%, and you can use our Saudi VAT calculator for those amounts.
What should a UAE tax invoice show?
A full tax invoice must show the words “Tax Invoice”, your Tax Registration Number, the customer’s details, a description of the supply, the VAT rate and the VAT amount in AED, among other details. See what a valid UAE tax invoice must include.
How do I calculate VAT on AED 1,000 including VAT?
1,000 ÷ 1.05 = AED 952.38 before VAT, and AED 47.62 of VAT.
Is VAT charged on tips or service charges?
A mandatory service charge forms part of the price and is subject to VAT. Voluntary tips given by the customer to staff are generally outside the scope.