VAT Calculator UAE
Calculate your exact tax amount with this VAT calculator UAE. Add or remove 5% Value Added Tax from any price based on current UAE law. Fast, free, and accurate for Dubai, Abu Dhabi, and all emirates.
About This Tool
What Is Value Added Tax in the UAE?
Value Added Tax (VAT) is a consumption tax applied to most goods and services in the UAE. It was introduced on 1 January 2018. The Federal Tax Authority (FTA) oversees the collection and regulation of this tax across all seven emirates.
This online VAT calculator uses the exact formulas outlined in Federal Decree-Law No. 8 of 2017. It applies the standard 5% rate or lets you adjust the rate for specific scenarios. No data is stored. All math runs in your browser.
Net Amount x (VAT Rate / 100) = VAT AmountGross Amount / (1 + VAT Rate / 100) = Net AmountRelated Calculators
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How It Works
How to Calculate Your UAE VAT
Businesses often confuse adding VAT with extracting it. The math is different for each method. Here is the exact process recognized by the FTA.
Identify Your Base
Determine if your starting amount includes tax or excludes tax. This changes the formula completely.
Adding 5% VAT
Multiply the net amount by 0.05 to find the tax. Add the tax to the net amount to get the gross total.
Removing 5% VAT
Divide the gross amount by 1.05 to find the net. Subtract the net from the gross to see the tax portion.
File Via EmaraTax
Use the final figures to complete your VAT return on the EmaraTax portal before your tax period deadline.
Calculation Examples
See the Formula in Action
These examples show the actual math this tool performs. Both assume the standard UAE VAT rate of 5%.
Common Scenarios
When to Use This Tool
Issuing Tax Invoices
Every registered business must issue a Tax Invoice showing the net, VAT, and gross amounts. Calculate the exact split before generating the document.
Filing VAT Returns
When filing on EmaraTax, you need accurate Input Tax and Output Tax figures. Use the reverse calculator to extract VAT from gross expenses.
Pricing Your Products
If you set a retail price and need to know how much tax you must remit to the FTA, use the remove VAT function to find out.
Checking Supplier Bills
Verify that your suppliers are charging the correct amount of tax on their invoices before you process the payment.
Tax Categories
Understanding UAE VAT Rates and Categories
Not all goods and services are taxed at 5%. The 2017 tax decree defines four distinct categories that affect how you calculate your liability.
| Category | VAT Rate | Can Claim Input Tax? | Common Examples |
|---|---|---|---|
| Standard Rated | 5% | Yes | Electronics, dining out, commercial rent |
| Zero-Rated | 0% | Yes | Exports, international transport, healthcare |
| Exempt | 0% | No | Residential rent, local passenger transport |
| Out of Scope | N/A | N/A | Employee salaries, dividends, government grants |
A common error is confusing Zero-Rated with Exempt supplies. Zero-rated goods technically have a 0% tax rate, but businesses can still reclaim input tax. Exempt supplies block input tax recovery entirely.
The Reverse Charge Mechanism
The Reverse Charge Mechanism (RCM) shifts the responsibility of paying VAT from the supplier to the buyer. It applies to imported services and certain goods from GCC states. If you fall under RCM, you calculate the 5% VAT on your purchases and report it directly in your return.
Registration Rules
Do You Need to Register for VAT?
Registration is not optional if your turnover crosses the legal threshold. The FTA sets strict limits based on your annual supplies.
Failing to register on time results in heavy administrative penalties. The standard late registration penalty is AED 10,000. You must apply through the EmaraTax portal before your threshold date passes.
Late Payment Penalties
Paying your VAT late is expensive. The FTA applies a fixed penalty plus a daily percentage. The fixed penalty is 2% of the unpaid tax. After that, 4% is charged on the 7th day following the deadline. An extra 1% daily penalty applies up to a maximum of 300%.
This calculator provides estimates based on standard UAE VAT rules. It does not constitute tax advice. Actual liabilities may vary based on specific business activities, profit margin schemes, or free zone designations. For formal tax guidance, consult a FTA-registered tax agent or contact the Federal Tax Authority directly.
Frequently Asked Questions
UAE VAT FAQs
The current VAT rate in the UAE is 5%. This standard rate has been in effect since 1 January 2018 and applies to most goods and services across all seven emirates.
Multiply the net amount by 0.05 to find the VAT. For example, a AED 1,000 service multiplied by 0.05 equals AED 50 in VAT. Add this to the net amount for a gross total of AED 1,050.
Divide the gross amount by 1.05. For example, if the total paid is AED 2,100, divide by 1.05 to get AED 2,000. The VAT portion is AED 100.
The mandatory registration threshold is AED 375,000. If your annual taxable supplies exceed this, you must register. You can register voluntarily if your turnover exceeds AED 187,500.
Zero-rated supplies have a 0% VAT rate, but businesses can still reclaim input tax on related expenses. Exempt supplies also charge 0% VAT, but businesses cannot reclaim any input tax on those sales.
No. Residential rent is exempt from VAT. You do not charge 5% tax on residential property leases. Commercial rent, however, is subject to the standard 5% rate.
Yes. All VAT registrations, returns, and payments must be processed through the EmaraTax portal. This is the official online platform managed by the Federal Tax Authority.
Under the Reverse Charge Mechanism, the UAE buyer calculates 5% VAT on the import value. The buyer reports this as both output tax and input tax on their return, offsetting the cash impact if full recovery is allowed.
UAE VAT amounts should be rounded to the nearest fils (two decimal places). If the third decimal is 5 or higher, round up. If it is 4 or lower, round down.
Yes, but with exceptions. Designated Zones are treated as outside the UAE for VAT purposes on goods. Services supplied within these zones still follow standard 5% UAE VAT rules.