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.

Frequently asked questions

The standard rate is 5%, in force since 1 January 2018. Some supplies, such as most exports, international transport and some education and healthcare, are zero-rated, and a few, such as residential rent and some financial services, are exempt.
Multiply the amount before VAT by 0.05. For 2,400 AED that is 120 AED VAT, so the total is 2,520 AED.
Divide by 1.05. For 525 AED: 525 ÷ 1.05 = 500 AED before VAT, and the VAT is 25 AED.
When taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500.
To the nearest fils (two decimals): 0.005 and above rounds up. On a full tax invoice, VAT is calculated and rounded for each line.

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