VAT Calculator

UAE VAT Rate: 5%
Add VAT
Calculate total with 5% VAT
Extract VAT
Remove VAT from total amount
Net Amount: AED0.00
VAT Amount (5%): AED0.00
Total Amount: AED0.00

Understanding VAT in the UAE

Value Added Tax (VAT) was introduced in the UAE on January 1, 2018, as part of a GCC-wide agreement. The standard VAT rate in the UAE is 5%, which is one of the lowest rates globally.

Key VAT Concepts

  • VAT is charged at 5% on most goods and services in the UAE
  • Some categories are either zero-rated or exempt from VAT
  • Businesses with annual taxable supplies over AED 375,000 must register for VAT
  • VAT returns must be filed periodically with the Federal Tax Authority (FTA)

VAT-Free and Zero-Rated Items

Certain goods and services in the UAE are either exempt from VAT or zero-rated:

  • Healthcare services and medicines
  • Educational services
  • Local passenger transport
  • Certain government services
  • Charitable organizations' activities
  • Some investment grade precious metals

VAT Calculations

There are two main ways to calculate VAT:

  • Adding VAT: Multiply the net amount by 1.05 to get the gross amount (including VAT)
  • Extracting VAT: Divide the gross amount by 1.05 to get the net amount (excluding VAT)
  • The VAT amount is the difference between the gross and net amounts