UAE VAT TOOL
Calculate VAT-inclusive and VAT-exclusive amounts in AED.
Choose a price type and enter an amount.
The standard UAE VAT rate is 5%. Change the rate above when needed for your calculation.
Your result
UAE VAT GUIDE
The standard VAT rate in the UAE is 5%. Use the calculator above to add VAT to a price or remove it from a VAT-inclusive amount.
VAT = Amount × 5%
On AED 1,000, VAT is AED 50 and the total is AED 1,050.
Before VAT = Total ÷ 1.05
AED 1,050 ÷ 1.05 = AED 1,000 before VAT, with AED 50 VAT included.
VAT Exclusive means the displayed price does not include VAT. The 5% VAT is added to the amount to calculate the final price.
VAT Inclusive means the displayed price already includes VAT. The calculator can separate the VAT amount from the total price.
| Price Type | Example | VAT | Final Amount |
|---|---|---|---|
| VAT Exclusive | AED 1,000 | AED 50 | AED 1,050 |
| VAT Inclusive | AED 1,050 | AED 50 | AED 1,050 |
The standard VAT rate in the United Arab Emirates is 5%. VAT treatment can vary depending on the nature of the supply, including supplies that may be zero-rated or exempt under UAE VAT rules.
This calculator is designed for general VAT calculations and does not determine whether a particular transaction is taxable, zero-rated or exempt.
In some cases, VAT is charged at 0%. This applies to specific sectors:
| Sector | Description |
|---|---|
| Exports | Goods and services sent outside the GCC. |
| International Transportation | Includes related supplies. |
| Certain Transport Vehicles | Aircraft, ships, and similar transportation means. |
| Precious Metals | Investment-grade metals like gold and silver (99% purity). |
| New Residential Properties | Supplied within three years of completion. |
| Education and Healthcare Services | Includes certain education and healthcare goods and services. |
Some sectors are completely exempt from VAT:
| Sector | Description |
|---|---|
| Financial Services | Certain financial services as specified by VAT legislation. |
| Residential Properties | Sale or lease of residential properties. |
| Bare Land | Sale of undeveloped land. |
| Local Transport | Local passenger transportation services. |
For most standard UAE VAT calculations, 5% is the applicable standard rate. However, not every transaction is treated at 5%—some supplies may be zero-rated or exempt. Use this calculator for general calculations, and verify the VAT treatment of specific transactions with the applicable UAE tax rules.
VAT registration requirements depend on a business's taxable supplies and imports and the applicable UAE VAT rules. For UAE-resident businesses, the mandatory registration threshold is generally AED 375,000, while voluntary registration may be available from AED 187,500, subject to the applicable conditions.
For registration requirements and current guidance, businesses should refer to the UAE Federal Tax Authority.
| Amount | VAT at 5% | Total Including VAT |
|---|---|---|
| AED 100 | AED 5 | AED 105 |
| AED 500 | AED 25 | AED 525 |
| AED 1,000 | AED 50 | AED 1,050 |
| AED 5,000 | AED 250 | AED 5,250 |
| AED 10,000 | AED 500 | AED 10,500 |
| VAT-Inclusive Amount | Amount Before VAT | VAT Included |
|---|---|---|
| AED 105 | AED 100 | AED 5 |
| AED 525 | AED 500 | AED 25 |
| AED 1,050 | AED 1,000 | AED 50 |
| AED 5,250 | AED 5,000 | AED 250 |
| AED 10,500 | AED 10,000 | AED 500 |
UAE VAT GUIDE
A practical overview of the UAE VAT rate, basic calculations and how VAT is reported. Rules can depend on the facts of each transaction, so confirm tax decisions against current official guidance.
The standard VAT rate in the UAE is 5%. However, certain supplies may be zero-rated or exempt under UAE VAT rules.
Multiply the amount before VAT by 5%. For example, AED 1,000 × 5% = AED 50 VAT. The total including VAT is AED 1,050.
For a price that already includes 5% VAT, divide the total amount by 1.05. For example, AED 1,050 ÷ 1.05 = AED 1,000 before VAT.
A VAT-exclusive price does not include VAT, so VAT is added to the displayed amount. A VAT-inclusive price already contains VAT.
Yes. The calculator can help you calculate the VAT amount and total price for general calculations. For actual tax invoices, businesses should ensure that the invoice complies with the applicable UAE VAT requirements.
Yes. Penieltech's UAE VAT Calculator is available online for free and can be used to calculate VAT-inclusive and VAT-exclusive amounts.
No. VAT registration depends on the business's taxable supplies, imports and the applicable registration rules. Businesses should check the current Federal Tax Authority requirements.
If your business needs help with UAE VAT, accounting, invoicing or tax-compliant business software, Penieltech can help you choose and implement a solution based on your business requirements.
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