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United Arab Emirates ยท Tax

VAT Calculator AE

Add or remove consumption tax and see the net and gross amounts.

How it works

Adding tax multiplies the net price by the rate and adds it on. Removing tax works backwards from a tax-inclusive price to find the original net amount.

Gross = Net ร— (1 + rate); Net = Gross รท (1 + rate)

Frequently asked questions

What is the VAT rate in the UAE?

The standard rate is 5%. The UAE introduced VAT at 5% in 2018 โ€” one of the lowest standard rates in the world. Some supplies (such as certain healthcare, education and exports) are zero-rated, and a few are exempt.

How do I add VAT to a price?

Multiply the net amount by 1.05. For example, AED 100 plus 5% VAT is AED 105.

How do I remove VAT from a total?

Divide the tax-inclusive total by 1.05. So AED 105 รท 1.05 = AED 100 before tax, and the VAT portion is AED 5.

Who has to register for VAT?

Registration is mandatory once taxable supplies exceed AED 375,000 a year, with voluntary registration available from AED 187,500.

When was VAT introduced in the UAE?

On 1 January 2018, at a standard rate of 5%, which remains in place.

Is there income tax in the UAE?

There is no personal income tax. VAT at 5% and corporate tax (on business profits) are the main taxes.

VAT calculator UAEadd VATVAT 5%remove VATUAE VAT registration

How VAT works in the UAE

the UAE charges VAT at a standard rate of 5% on most goods and services. It is a consumption tax collected in stages: businesses add it to their sales and reclaim the VAT they pay on purchases, so the cost ultimately falls on the final consumer.

Adding and removing VAT

To add 5% VAT, multiply the net price by 1.05 โ€” so AED 100 becomes AED 105, of which AED 5 is tax. To remove it from a tax-inclusive total, divide by 1.05: AED 105 รท 1.05 = AED 100 before tax.

Rates and registration

The UAE introduced VAT at 5% in 2018 โ€” one of the lowest standard rates in the world. Some supplies (such as certain healthcare, education and exports) are zero-rated, and a few are exempt. Registration is mandatory once taxable supplies exceed AED 375,000 a year, with voluntary registration available from AED 187,500.

VAT is administered by the Federal Tax Authority. There is no personal income tax in the UAE, so VAT is one of the main consumption taxes; registered businesses file periodic returns and reclaim input VAT.

Results are estimates for general guidance in United Arab Emirates and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.