Gulffigure.com — UAE Calculators for Everyday Life

UAE VAT Calculator 2026

Add or remove 5% VAT from any AED amount — for invoices, quotes and shopping.

✓ 5% standard rate · verified November 2026

Calculate VAT

Total including VAT
AED 0
Net amount–
VAT (5%)–
Gross amount–

How to use this calculator

  1. Enter the amount in AED — the price on the invoice, quote or shelf.
  2. Choose Add VAT or Remove VAT — adding goes from net to gross; removing goes from a VAT-inclusive price back to net.
  3. Hit calculate — the net amount, the 5% VAT and the gross total appear separately.
  4. Use the right line — invoice the gross total; record the VAT line for your returns.
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How VAT works in the UAE

Key facts at a glance

  • 5% standard VAT on most goods and services, in force since January 2018
  • Mandatory registration above AED 375,000 turnover; voluntary above AED 187,500
  • To remove VAT from a gross amount: divide by 1.05
  • Zero-rated: basic food, healthcare, education and exports

The UAE introduced Value Added Tax at a standard rate of 5% on 1 January 2018 — among the lowest VAT rates in the world.

Common mistakes to avoid

  1. Subtracting 5% instead of dividing by 1.05. Removing VAT from AED 1,050 by subtracting 5% gives AED 997.50 — wrong. The correct net is 1,050 ÷ 1.05 = AED 1,000 exactly. This is the most frequent VAT arithmetic error.
  2. Confusing zero-rated with exempt. Zero-rated supplies (exports, basic food, healthcare, education) carry 0% VAT but still count toward registration thresholds and allow input VAT recovery — see our zero-rated vs exempt guide. Exempt supplies (some financial services, residential rent) do neither.
  3. Missing the registration threshold. Registration becomes mandatory once taxable supplies exceed AED 375,000 in the previous 12 months — or are expected to in the next 30 days. Late registration carries an AED 10,000 penalty.
  4. Forgetting VAT on imports. Goods imported into the UAE attract 5% VAT at customs even if the foreign seller charged no VAT. Businesses account for it via the reverse charge mechanism.
  5. Bad invoice details. A valid tax invoice must show your TRN, the VAT amount and rate separately — without a proper invoice you cannot recover input VAT. Read the VAT invoice requirements.
  6. Mixing up tourist refunds. Tourists can reclaim VAT on qualifying purchases, but the refund is a percentage of the VAT paid with a minimum spend — it is not a full 5% back.

Pro tips

  • Quote both net and gross. Always show "AED 1,000 + VAT" or "AED 1,050 incl. VAT" on quotes — ambiguity causes disputes and rejected invoices.
  • Track turnover monthly. A rolling 12-month check against the AED 375,000 threshold keeps you ahead of the mandatory registration deadline and the AED 10,000 late penalty.
  • Register voluntarily if you sell B2B. Above AED 187,500 you can register voluntarily — being VAT-registered lets you reclaim input VAT and looks more credible to corporate clients. Details in our UAE VAT guide.
  • File on time, every time. VAT returns and payments are due within 28 days of the end of each tax period — late filing triggers penalties that compound fast. Learn the penalty structure before your first return.
  • Keep records for 5 years. The FTA can audit up to five years back; store every tax invoice digitally with backups.
  • Separate business and personal spending. Only VAT on genuine business expenses is recoverable — mixing personal purchases into claims is a classic audit trigger.

Second worked example: removing VAT from a restaurant bill

Your bill shows AED 210 including VAT and you want the net amount plus the VAT charged.
Net = 210 ÷ 1.05 = AED 200
VAT charged = 210 − 200 = AED 10
Compare: wrongly subtracting 5% would give AED 199.50 net and AED 10.50 VAT — a small error per bill that becomes material across a business's books.

Frequently asked questions

What is the VAT rate in the UAE?

5% on most goods and services since 1 January 2018.

How do I remove VAT from a price?

Divide the VAT-inclusive amount by 1.05. AED 105 incl. VAT = AED 100 net + AED 5 VAT.

Who must register for VAT?

Businesses with taxable supplies above AED 375,000 in 12 months must register; voluntary above AED 187,500.

Is there VAT on rent and school fees in the UAE?

Residential rent and school fees are generally zero-rated or exempt — but confirm with your tax adviser for your specific case.

What is the reverse charge mechanism in UAE VAT?

Normally the seller charges 5% VAT; under reverse charge the buyer accounts for the VAT instead. It applies to specific transaction types such as imports — the 5% rate itself doesn't change. If your business imports goods, confirm the treatment with a tax adviser.

Can tourists get a VAT refund in the UAE?

Yes — the UAE runs an official Tax Refund for Tourists scheme. Visitors can claim back VAT paid on eligible purchases when leaving the country through the scheme's refund points at airports and other departure terminals, subject to the scheme's conditions. UAE residents can't use it.

How do I cancel (deregister) my VAT registration?

If your taxable turnover falls below the voluntary threshold of AED 187,500 — or you stop making taxable supplies — you can apply for tax deregistration. Keep filing returns and paying until the cancellation is confirmed, to avoid penalties.

What is the penalty for late VAT registration in the UAE?

AED 10,000 for failing to register when required. Registration becomes mandatory once taxable supplies exceed AED 375,000 in the previous 12 months or are expected to exceed it in the next 30 days — so monitor turnover continuously, not once a year.

When are UAE VAT returns due?

VAT returns and the corresponding payment are due within 28 days of the end of each tax period. Missing the deadline triggers late-payment penalties, so diarise the date as soon as your tax periods are assigned.

Can I reclaim VAT on a car purchased for my business?

Generally no — VAT on motor vehicles is blocked from recovery unless the vehicle is used in a qualifying business activity such as a car dealership, rental or taxi operation. For ordinary business use, the VAT on a car purchase cannot be reclaimed.

Is VAT charged on education and healthcare in the UAE?

Qualifying education and healthcare services are zero-rated at 0% — no VAT is added to the price, but the supplier can still recover input VAT on related costs. This is different from exempt supplies, where input VAT recovery is blocked.

Do I charge VAT to customers outside the UAE?

Exports of goods and many international services are zero-rated at 0%, meaning you charge no VAT but can still recover input VAT. Keep shipping documents and contracts as proof the supply genuinely left the UAE — the FTA checks this.

Related tools & guides

Go deeper on UAE VAT:

UAE VAT Guide →
Registration, returns, zero-rated vs exempt supplies — the complete VAT guide.

VAT Penalties in the UAE →
Fines for late registration, late filing and incorrect invoices — and how to stay compliant.

VAT Invoice Requirements →
What every compliant UAE tax invoice must include.