UAE VAT Calculator (2025 - 2026) | Add or Extract 5% VAT Online

1 Enter Net Base Amount (AED) *

AED

AED 1,000 AED 5,000 AED 10,000 AED 25,000 AED 50,000 AED 100,000 AED 375,000

2 Select or Customize VAT Rate *

5% Standard (UAE) 0% Zero-Rated Custom % Rate

Adding Standard 5% UAE VAT

Enter your net invoiced amount above or click a preset chip to see the live breakdown.

Formula: Total Gross = Net Amount + 5% VAT (Gross = Net × 1.05)

Real-time instant calculation

Estimated Total Invoiced Amount (Gross)

AED 0

Net Base (AED 0)

5% VAT (AED 0)

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Detailed Breakdown

FTA Statutory Estimates

Net Amount (Excl. VAT): AED 0

Applied VAT Rate: 5.0% Standard

VAT Component Amount: AED 0

Total Amount (Incl. VAT): AED 0

Effective VAT Rate 0.0%

FTA Threshold Status Enter Amount

FTA VAT Calculation Guide

How 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 Price

When you have a net sales amount and need to calculate the standard 5% VAT to charge on an invoice:

VAT Amount = Net Amount × 0.05
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 Price

When a retail price or marketplace sale already includes 5% VAT and you need to find the underlying net revenue:

Net Amount = Gross Total ÷ 1.05
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.

Federal Tax Authority Classification

UAE VAT Rates & Supplies Matrix

Understand the 4 distinct VAT treatments under UAE legislation to ensure 100% compliance on billing and tax recovery.

Standard Rated

Applies to commercial goods, retail products, consulting, logistics, electronics, and standard commercial real estate leases.

Zero-Rated Supplies

Direct exports of goods & services outside the UAE/GCC, international passenger transport, basic healthcare, and first supply of residential buildings within 3 years.

Exempt

Exempt Supplies

Local passenger transport, bare land leases, residential property rentals, and certain financial services with explicit margin-based fees.

Designated Free Zones

Goods transferred between designated fenced free zones (e.g., JAFZA, DAFZA, KIZAD) are out of scope of UAE VAT under strict customs control.

EmaraTax Compliance Guidelines

UAE VAT Registration Thresholds

Statutory revenue thresholds set by the UAE Federal Tax Authority (FTA) for domestic and foreign entities.

AED 375,000

Mandatory Registration

Resident businesses with annual taxable turnover exceeding AED 375,000 in the past 12 months (or expected in 30 days) must register with FTA.

AED 187,500

Voluntary Registration

Businesses with annual taxable turnover or deductible business expenses exceeding AED 187,500 can voluntarily register to recover input tax.

AED 1.00 (Zero)

Non-Resident / Foreign Sellers

Foreign sellers stocking inventory in UAE warehouses (such as Amazon FBA UAE) must register for VAT before making their first taxable dirham supply.

Help & Answers

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.

UAE VAT & Tax Calculator