UAE VAT & Tax Calculator
Add VAT to a net amount, or pull the VAT out of a figure that already includes it. Calculates standard 5% VAT, net base amount, and total gross price in AED.
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Detailed Breakdown
FTA Statutory EstimatesHow to Calculate UAE VAT (5%)
Understanding the standard mathematical formulas for VAT inclusive (gross) and VAT exclusive (net) pricing in the United Arab Emirates.
1. Adding VAT (Net to Gross)
Exclusive PriceWhen you have a net sales amount and need to calculate the standard 5% VAT to charge on an invoice:
Total Gross = Net Amount × 1.05
Example: For a service priced at AED 100,000, VAT is AED 5,000 (100,000 × 0.05), making the final invoiced price AED 105,000.
2. Excluding / Extracting VAT
Inclusive PriceWhen a retail price or marketplace sale already includes 5% VAT and you need to find the underlying net revenue:
VAT Component = Gross Total − Net Amount
Example: For a retail item sold at AED 105,000 gross, the net revenue is AED 100,000 (105,000 ÷ 1.05) and VAT payable is AED 5,000.
5% UAE VAT in Practice: Quick Examples
Use these real-world cases to check your own invoices and prices.
Invoice example (net to gross)
A Dubai agency invoices AED 8,000 for design work. VAT is 8,000 × 0.05 = AED 400. The client pays AED 8,400.
Shelf price example (gross to net)
A shelf price is AED 525 including VAT. Net price is 525 ÷ 1.05 = AED 500. The VAT inside the price is AED 25.
Quick mental math
The VAT inside a gross price is the gross price ÷ 21. For AED 2,100, the VAT is AED 100.
Common mistake to avoid
Do not subtract 5% from a gross price. Five percent of 525 is 26.25, which gives a wrong net of 498.75. Divide by 1.05 instead.
Charge VAT only after you are VAT-registered. Registration is mandatory above AED 375,000 of taxable supplies. Read our UAE corporate tax and VAT guide for the full rules.
UAE VAT Rates & Supplies Matrix
Understand the 4 distinct VAT treatments under UAE legislation to ensure 100% compliance on billing and tax recovery.
Applies to commercial goods, retail products, consulting, logistics, electronics, and standard commercial real estate leases.
Direct exports of goods & services outside the UAE/GCC, international passenger transport, basic healthcare, and first supply of residential buildings within 3 years.
Local passenger transport, bare land leases, residential property rentals, and certain financial services with explicit margin-based fees.
Goods transferred between designated fenced free zones (e.g., JAFZA, DAFZA, KIZAD) are out of scope of UAE VAT under strict customs control.
UAE VAT Registration Thresholds
Statutory revenue thresholds set by the UAE Federal Tax Authority (FTA) for domestic and foreign entities.
Resident businesses with annual taxable turnover exceeding AED 375,000 in the past 12 months (or expected in 30 days) must register with FTA.
Businesses with annual taxable turnover or deductible business expenses exceeding AED 187,500 can voluntarily register to recover input tax.
Foreign sellers stocking inventory in UAE warehouses (such as Amazon FBA UAE) must register for VAT before making their first taxable dirham supply.
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UAE VAT Frequently Asked Questions
Key answers to common questions about UAE VAT rates, invoicing, and FTA compliance.
The standard VAT rate in the United Arab Emirates is 5%, implemented on January 1, 2018. It applies to most standard supplies of goods and services unless explicitly zero-rated or exempt under the UAE VAT Law.
To extract 5% VAT from an inclusive price, divide the total gross amount by 1.05 to obtain the net amount. The VAT amount is the difference between the gross total and the net amount. Note: Do not subtract 5% directly from the gross total, as that would mathematically understate the net price.
On zero-rated supplies (such as international exports), VAT is charged at 0%, and the business retains the legal right to recover 100% of the input VAT incurred on its business expenses. On exempt supplies (such as local passenger transport and residential rentals), no VAT is charged, but the business cannot recover input VAT on related costs.
Yes. Non-resident sellers who store goods inside UAE fulfillment centers (such as Amazon FBA in Dubai or Abu Dhabi) are subject to a zero registration threshold (AED 1.00). Foreign sellers must register with the FTA and collect 5% VAT on sales from their first transaction.
Most registered businesses in the UAE file VAT returns on a quarterly basis (Form VAT 201) through the FTA EmaraTax online portal. Returns and payments must be submitted no later than the 28th day following the end of the tax period.