VAT Calculator UAE (5%) — Add or Remove VAT Online

How do I use the UAE VAT calculator?

Enter the amount in AED.
Choose Add VAT or Remove VAT.
Read the net, VAT and total, then copy them into your invoice.

How does VAT work in the UAE?

Value added tax was introduced in the UAE on 1 January 2018 and is administered by the Federal Tax Authority (FTA). The standard rate is 5% on most goods and services. Some supplies are zero-rated (such as certain exports, international transport and some education and healthcare) and some are exempt (such as certain residential property and local passenger transport). VAT-registered businesses charge VAT on sales, reclaim VAT on eligible purchases and file returns, usually quarterly.

VAT formulas: adding and removing 5% VAT

You have	You want	Formula	Example (AED)
Price before VAT	VAT amount	Price × 0.05	1,000 × 0.05 = 50
Price before VAT	Total with VAT	Price × 1.05	1,000 × 1.05 = 1,050
Total including VAT	Price before VAT	Total ÷ 1.05	1,050 ÷ 1.05 = 1,000
Total including VAT	VAT inside it	Total − (Total ÷ 1.05)	1,050 − 1,000 = 50

A common mistake is to take 5% of a VAT-inclusive total to find the VAT. That gives the wrong answer: 5% of 1,050 is 52.50, but the VAT inside it is 50.

When must a business register for VAT in the UAE?

Registration is mandatory when taxable supplies and imports exceed the mandatory threshold over the previous 12 months or are expected to in the next 30 days, and voluntary above a lower threshold. The FTA publishes the current thresholds; at the time of writing they are AED 375,000 (mandatory) and AED 187,500 (voluntary). Once registered, you receive a Tax Registration Number (TRN) that must appear on your tax invoices.

What must a UAE tax invoice show?

The words “Tax Invoice”
Your name, address and TRN
The customer's name, address and TRN (if they are registered)
A sequential invoice number and the date of issue
A description of the goods or services, quantity and unit price
The VAT rate and the VAT amount in AED
The total amount payable

Simplified tax invoices are allowed in some cases, such as retail sales below a set value.

Common VAT mistakes small businesses make

Quoting prices without making clear whether VAT is included.
Calculating VAT on a VAT-inclusive amount (see the formula table).
Missing the registration deadline once the threshold is crossed.
Reclaiming VAT on expenses that are blocked, such as some entertainment costs.
Issuing invoices without a TRN or the required details.

This calculator helps with the arithmetic; for registration, returns and complex supplies, speak to a registered tax agent.

UAE VAT calculator: frequently asked questions

What is the VAT rate in the UAE?

The standard rate is 5%. Some supplies are zero-rated or exempt; check with the Federal Tax Authority for your case.

How do I remove VAT from a total?

Divide the VAT-inclusive total by 1.05 to get the net amount. The VAT is the difference.

How do I add VAT to a price?

Multiply the net price by 1.05. AED 1,000 plus VAT is AED 1,050.

How do I remove VAT from a price?

Divide the gross price by 1.05. AED 1,050 including VAT is AED 1,000 before VAT.

How do I calculate the VAT amount inside a total?

Multiply the VAT-inclusive total by 5/105. AED 1,050 contains AED 50 VAT.

When must a business register for VAT?

Registration is mandatory above the threshold set by the Federal Tax Authority and voluntary above a lower threshold. Check current thresholds with the FTA.

Must prices be shown including VAT?

Prices shown to consumers in the UAE should generally include VAT.

Which supplies are zero-rated?

Examples include certain exports, international transport and some education and healthcare services. Confirm your case with a tax adviser.

Is the result rounded?

Results are shown to two decimal places, as fils, which matches typical invoicing.

Are these calculations based on UAE rules?

Where a UAE rule applies (VAT, labour law, mortgage limits) the tool follows it and names the source. Rules change, so confirm important figures with the relevant authority.