UAE VAT Calculator
Calculate VAT quickly and accurately. Free tool for UAE businesses.
Net Amount
AED 0.00
VAT Amount
AED 0.00
Total Amount
AED 0.00
Understanding UAE VAT
UAE VAT Rate
The standard VAT rate in the United Arab Emirates is 5%. This rate has been in effect since the introduction of VAT on January 1, 2018, and applies to most goods and services supplied in the UAE.
The UAE maintains one of the lowest VAT rates globally, making it an attractive destination for businesses while ensuring compliance with international tax standards.
VAT Registration Thresholds
Mandatory Registration Threshold
AED 375,000
Businesses must register for VAT if their taxable supplies and imports exceed AED 375,000 in the previous 12 months, or are expected to exceed this amount in the next 30 days.
Voluntary Registration Threshold
AED 187,500
Businesses with taxable supplies and imports exceeding AED 187,500 may voluntarily register for VAT. This allows smaller businesses to claim input VAT and enhance their credibility with clients.
Note: Registration must be completed within 30 days of exceeding the mandatory threshold. Late registration may result in penalties from the Federal Tax Authority (FTA).
Standard Rated vs Zero-Rated Supplies
Standard Rated (5%)
Most goods and services in the UAE are subject to the standard VAT rate of 5%. This includes:
- • Food and beverages
- • Electronics and technology
- • Clothing and fashion items
- • Professional services
- • Hospitality and entertainment
- • Telecommunications
Zero-Rated (0%)
Certain supplies are subject to 0% VAT. While no VAT is charged, businesses can still claim input VAT. Zero-rated supplies include:
- • Exports of goods outside the GCC
- • International transportation services
- • Certain healthcare and education services
- • Supply and import of investment grade precious metals
- • First supply of residential properties within 3 years of completion
Exempt supplies (such as certain financial services and residential property rentals) are different from zero-rated supplies. For exempt supplies, businesses cannot charge VAT and cannot recover input VAT on related costs.
How to Use the VAT Calculator
Adding VAT to an Amount
Select "Add VAT" if you have a net amount and want to calculate the total including VAT. For example, if your service costs AED 1,000 and you need to add 5% VAT, enter 1,000 and the calculator will show the VAT amount (AED 50) and total (AED 1,050).
Removing VAT from an Amount
Select "Remove VAT" if you have a VAT-inclusive amount and want to calculate the net amount and VAT component separately. For example, if a customer paid AED 1,050 including VAT, the calculator will show the net amount (AED 1,000) and VAT amount (AED 50).
Pro Tip for Accountants
When reconciling VAT returns, use this calculator to verify VAT amounts on invoices and receipts. Always ensure that the VAT rate applied matches the type of supply (standard-rated, zero-rated, or exempt) according to UAE VAT law.
Need Help with VAT Compliance?
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Learn More About VAT Compliance