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VAT Calculator - UAE

Calculate VAT (5%) in UAE — add or remove tax from any amount

How to Use

  1. Select the country or enter a custom VAT rate
  2. Enter the amount to calculate
  3. Choose the operation: "Add VAT" or "Remove VAT"
  4. Press "Calculate" to see the amount before/after VAT and the tax amount

This tool is available for other countries

VAT in the UAE

The VAT rate in the UAE is 5%, applied since January 2018.

How to calculate?

To add VAT: multiply by 1.05. Example: 1,000 × 1.05 = 1,050 AED.

To extract VAT: divide by 1.05. Example: 1,050 ÷ 1.05 = 1,000 AED.

Calculation Methodology

Formula used

To add 5% VAT: total = pre-tax amount × 1.05. To extract VAT: pre-tax amount = total ÷ 1.05, then VAT equals the difference between total and pre-tax amount.

Assumptions

The calculator assumes a UAE standard-rated supply and does not handle exempt or zero-rated supplies, registration rules, or invoicing requirements.

Source basis

This page is based on Federal Tax Authority VAT information. Check the official source when a business-specific case applies.

Practical Examples

Adding VAT to a 2,000 AED electronics purchase

Mohammed bought electronics priced at 2,000 AED before tax. VAT = 2,000 × 5% = 100 AED Total = 2,000 + 100 = 2,100 AED Mohammed pays 2,100 AED including VAT.

Extracting VAT from a 1,575 AED hotel bill

Fatima paid 1,575 AED at a hotel (VAT-inclusive). Base amount = 1,575 ÷ 1.05 = 1,500 AED VAT amount = 1,575 - 1,500 = 75 AED The original price was 1,500 AED and the tax was 75 AED.

Frequently Asked Questions

What goods and services are VAT-exempt in the UAE?
Exemptions include residential property (sale and lease), certain financial services, local passenger transport, and bare land. Exports, education, and healthcare are zero-rated (0%).
Is VAT applied on rent in the UAE?
Residential rent is fully exempt from VAT. Commercial rent is subject to the standard 5% rate.
What is the VAT registration threshold in the UAE?
Mandatory registration applies when taxable supplies exceed AED 375,000 annually. Voluntary registration is available above AED 187,500.
Can tourists get a VAT refund in the UAE?
Yes, non-resident tourists can reclaim VAT on qualifying goods purchased from registered retailers, provided the goods are exported within 90 days. Services such as hotels and restaurants are excluded.
When was VAT introduced in the UAE?
VAT was introduced at 5% on January 1, 2018. The rate has remained unchanged since then.
Is VAT charged on e-commerce purchases in the UAE?
Yes, all digital services and e-commerce transactions are subject to 5% VAT. The UAE launched a world-first e-commerce tourist VAT refund system in December 2024.

Legal References

Disclaimer: The results shown are approximate and for reference only, and do not constitute financial or legal advice. Actual amounts may vary based on additional factors. Please consult the relevant official authorities or a licensed financial advisor for accurate information specific to your situation.

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