UAE VAT Calculator (5%)
Work out 5% UAE VAT in dirhams: add it to a price or take it out of a VAT-inclusive total, rounded to the nearest fils.
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VAT rates in the GCC
| Kuwait | No VAT | |
|---|---|---|
| UAE | 5% | Since 1 January 2018 |
| Saudi Arabia | 15% | Since 1 July 2020 |
| Qatar | No VAT | |
| Bahrain | 10% | Since 1 January 2022 |
| Oman | 5% | Since 16 April 2021 |
How VAT works in the UAE
The UAE introduced VAT at 5% on 1 January 2018. It is managed by the Federal Tax Authority (FTA). A business must register once its taxable supplies pass AED 375,000 a year, and may register voluntarily from AED 187,500.
Examples at 5%
- Add VAT: 1,000 AED × 5% = 50 AED VAT, total 1,050 AED.
- Remove VAT: a 99 AED price including VAT. 99 ÷ 1.05 = 94.2857 → 94.29 AED before VAT, VAT 4.71 AED.
- Shortcut: the VAT inside a VAT-inclusive total is total × 5 ÷ 105 (about 4.76%).
Prices and invoices in the UAE
Prices shown to customers should, as a general rule, include VAT. A tax invoice must still show the amount before VAT, the VAT and the total separately, along with your TRN. VAT is rounded to the nearest fils, per line on a full tax invoice. Our tax invoice generator does all of this for free; see also the UAE tax invoice checklist and what changes with UAE e-invoicing in 2027.