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🇦🇪 UAE VAT

UAE VAT Calculator

Add or remove 5% VAT from any price instantly, and check where you stand against the AED 375,000 registration threshold.

Are you adding VAT to a price, or finding the VAT inside a price?
Enter the VAT-exclusive amount
Price Excluding VAT
AED 1,000.00
VAT (5%)
AED 50.00
Price Including VAT
AED 1,050.00
AED 1,000.00 × 1.05 = AED 1,050.00
✅ The UAE's VAT rate is a flat 5% on most goods and services — one of the lowest VAT/GST rates in the world. Some supplies are zero-rated (0%) or exempt — see below.

📋 VAT Registration Threshold Checker

Businesses must register for VAT once taxable turnover exceeds AED 375,000 in a rolling 12-month period.

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How VAT Works in the UAE

Value Added Tax (VAT) is the UAE's broad-based consumption tax, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017, at a standard rate of 5% — one of the lowest VAT rates in the world. It applies to most goods and services supplied in the UAE, as well as most imports. The final consumer bears the cost, while VAT-registered businesses collect it and remit it to the Federal Tax Authority (FTA) through the EmaraTax portal.

🧮 VAT Formulas

Calculation Formula
Add VAT (exclusive → inclusive) Price × 1.05
Remove VAT (inclusive → exclusive) Price ÷ 1.05
Find VAT in an inclusive price Price × 5/105
Find VAT on an exclusive price Price × 0.05

📝 Zero-Rated vs. Exempt Supplies

Zero-rated supplies are taxable supplies charged at 0% VAT — this includes exports of goods and services outside the GCC, international transport, and certain healthcare and education services. Because they're technically taxable, sellers can still recover VAT paid on related business costs.

Exempt supplies have no VAT charged at all, and typically include most financial services, residential real estate leases (after the first supply), and bare land. Unlike zero-rated supplies, sellers generally cannot recover VAT on costs related to exempt supplies.

Registration Thresholds: Registration is mandatory once taxable supplies exceed AED 375,000 over a rolling 12-month period (or if you expect to exceed it within the next 30 days). Voluntary registration is available from AED 187,500. Non-resident businesses making taxable supplies in the UAE must register regardless of turnover — there's no threshold exemption for them.

📅 VAT Filing in the UAE

Most VAT-registered businesses file quarterly through the FTA's EmaraTax portal, though some larger businesses are assigned monthly filing. Returns and any VAT owed are due within 28 days after the end of the tax period. Late registration carries a penalty of AED 10,000, and late filing penalties are AED 1,000 for a first offence, rising to AED 2,000 for repeat offences within 24 months.

💡 Example Calculation

Adding VAT: A product priced at AED 2,000 excluding VAT → AED 2,000 × 1.05 = AED 2,100 including VAT. The VAT portion is AED 100.

Removing VAT: A receipt shows AED 2,100 including VAT → AED 2,100 × 5/105 = AED 100 VAT, meaning the exclusive price was AED 2,100 − AED 100 = AED 2,000.

Note: These examples use the standard 5% rate for taxable, non-zero-rated supplies.

⚠️ Important Notes

- This calculator provides estimates only for the standard 5% VAT rate.
- It does not determine whether a specific supply is zero-rated, exempt, or standard-rated — check with the FTA or a tax advisor for your situation.
- Free zone companies are generally still subject to UAE VAT law — check whether your free zone is a "Designated Zone" with special treatment for goods.
- It does not model the reverse charge mechanism or the new mandatory e-invoicing requirements being phased in for larger businesses from late 2026.
- For official guidance, use Federal Tax Authority (FTA).
- Rates and thresholds are subject to change and should be verified for your specific situation.

Frequently Asked Questions

The standard VAT rate in the UAE is 5%, unchanged since it was introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Some supplies are zero-rated (0%) or exempt instead of the standard rate.

To add VAT to a VAT-exclusive price, multiply by 1.05. To find the VAT included in a VAT-inclusive price, divide by 1.05 and subtract the result from the original amount, or multiply the inclusive price by 5/105.

Registration is mandatory once your taxable supplies exceed AED 375,000 over a rolling 12-month period, or if you expect to exceed it within the next 30 days. Voluntary registration is available from AED 187,500. Non-resident businesses making taxable supplies in the UAE must register regardless of turnover — there's no threshold exemption for them.

Zero-rated supplies (like exports, international transport, and some healthcare and education services) are taxable at 0%, and the seller can still recover input VAT on related costs. Exempt supplies (like most financial services and bare land) have no VAT charged and generally don't allow input VAT recovery.

Most businesses file quarterly through the FTA's EmaraTax portal, though some larger businesses file monthly. Returns and any VAT owed are due within 28 days after the end of the tax period.

⚠️ Disclaimer: This calculator provides estimates for informational purposes only, based on the standard 5% VAT rate. It does not determine the correct VAT treatment for zero-rated, exempt, or Designated Zone supplies, nor model the reverse charge mechanism or e-invoicing requirements. For official guidance, use the Federal Tax Authority (FTA) or consult a tax professional.
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