VAT Calculator UAE – Calculate VAT in Dubai & Across the UAE
Easily calculate Value Added Tax (VAT) in the UAE with our free online VAT calculator. Whether you need to add VAT or remove VAT, our tool gives instant results in AED. Businesses, accountants, and individuals can use this calculator to stay compliant with the Federal Tax Authority (FTA) requirements.
Enter the amount, select the VAT rate (default 5%), and choose inclusive or exclusive of VAT.
How to Use the UAE VAT Calculator
Using the calculator is simple:
- Enter the amount in AED.
- Select the VAT rate (preset to 5%, but adjustable).
- Choose whether the price is exclusive of VAT or inclusive of VAT.
- Click calculate to see the VAT amount, net price, and total price instantly.
This tool helps businesses prepare invoices, quotes, and VAT returns without errors.
What is VAT in UAE?
VAT (Value-Added Tax) is an indirect tax on the consumption of goods and services, introduced in the United Arab Emirates on January 1, 2018.
- Standard Rate: 5% applies to most goods and services.
- Zero-Rated: Some categories attract 0% VAT.
- Exempt: Certain supplies are fully exempt.
VAT is collected by businesses registered with the Federal Tax Authority (FTA) and submitted through periodic VAT returns.
VAT Calculation Formula
VAT can be calculated differently depending on whether the amount is inclusive or exclusive:
- Exclusive of VAT:
- VAT = Net Price × VAT Rate
- Gross = Net Price × (1 + VAT Rate)
- Inclusive of VAT:
- VAT = Gross × [VAT Rate ÷ (1 + VAT Rate)]
- Net = Gross ÷ (1 + VAT Rate)
Example:
- Net AED 100 → VAT 5% = AED 5 → Gross AED 105
- Gross AED 105 → Net = AED 100, VAT = AED 5
VAT Registration Thresholds in UAE
VAT registration depends on annual turnover:
- Above AED 375,000 → Mandatory registration
- AED 187,500 – AED 375,000 → Voluntary registration
- Below AED 187,500 → Registration not required
This ensures SMEs and startups only register if they meet the FTA criteria.
Zero-Rated & VAT Exempt Supplies
Not all sectors are subject to 5% VAT.
1- Zero-Rated (0% VAT):
- Exports outside GCC
- International transport and related services
- Aircraft, ships, and specific transport vehicles
- Investment-grade precious metals (gold, silver, platinum)
- New residential properties (within 3 years)
- Education and healthcare
2- Exempt (No VAT):
- Financial services (as per VAT law)
- Residential property rentals and sales
- Bare land transactions
- Local passenger transport
VAT Return Filing in UAE
All VAT-registered businesses must file VAT returns with the Federal Tax Authority (FTA):
- Quarterly filing → Turnover < AED 150 million
- Monthly filing → Turnover ≥ AED 150 million
- Filing deadline: 28th day after each tax period
Failure to file on time can result in FTA penalties. Businesses must keep tax invoices and VAT records for a minimum of 5 years.
Why Use Our VAT Calculator UAE?
- Instant, error-free VAT results in AED
- Helps businesses prepare invoices & returns
- Aligns with UAE’s VAT laws & FTA requirements
- Useful for startups, SMEs, and large companies
- Free to use, anywhere in Dubai or the UAE
Frequently Asked Questions – VAT in UAE
What is the current VAT rate in the UAE?
The standard VAT rate in the UAE is 5%, applied to most goods and services. Certain supplies are either zero-rated (0%) or exempt.
When was VAT introduced in the UAE?
VAT was introduced in the United Arab Emirates on January 1, 2018, as part of the GCC VAT framework.
How do you calculate VAT in the UAE?
To calculate VAT, multiply the net price by 5% to get the VAT amount. If the price is VAT-inclusive, divide the gross price by 1.05 to find the net price, and subtract to get VAT.
Do all businesses in the UAE need to register for VAT?
No. VAT registration is mandatory if annual turnover exceeds AED 375,000. Businesses with a turnover between AED 187,500 and AED 375,000 may register voluntarily.
What is the difference between zero-rated and exempt supplies?
Zero-rated: VAT charged at 0%, but businesses can reclaim input VAT (e.g., exports, education, healthcare).
Exempt: No VAT charged, and businesses cannot reclaim input VAT (e.g., residential property, local transport).
Conclusion
The introduction of VAT in the UAE has made accurate tax calculation essential for businesses and individuals alike. Whether you’re preparing invoices, filing VAT returns, or simply checking the tax on a purchase, our VAT Calculator UAE makes the process quick, reliable, and hassle-free.
With built-in compliance to the Federal Tax Authority’s 5% VAT rule, you can confidently calculate VAT-inclusive or VAT-exclusive prices in just a few clicks.