UAE VAT calculator
Calculate VAT on any amount in the UAE, whether you need to add it to a price or find it inside a total.
Add VAT on top of a price that does not yet include it.
Almost everything sold in the UAE is 5 percent. Zero-rated covers exports outside the GCC, international transport, and certain other supplies. VAT-exempt sales carry no VAT at all.
Your taxable sales over the last 12 months. We check it against the AED 375,000 mandatory and AED 187,500 voluntary registration thresholds.
VAT computation
How the VAT is worked out on your amount.
| Price before VAT | 1,000.00 |
| VAT at 5%1,000 × 0.05 | + 50.00 |
| Total including VAT | 1,050.00 |
Disclaimer
This is an estimate based on the standard 5 percent rate and the UAE registration thresholds. Whether a specific sale is standard-rated, zero-rated, or exempt depends on the transaction and the rules in force under the UAE VAT Law and its Executive Regulations. Confirm your treatment with a tax professional before invoicing.
What is VAT in the UAE?
Value Added Tax (VAT) is a consumption tax of 5 percent on most goods and services supplied in the UAE, and on imports. It was introduced on 1 January 2018. VAT is an indirect tax: the business adds it to the price and the buyer ultimately pays it, while the business collects it and passes it to the Federal Tax Authority (FTA).
VAT-registered businesses charge VAT on their sales (output VAT) and claim back the VAT they paid on their own purchases (input VAT). You remit the difference to the FTA, so VAT is really a tax on the value you add, not on your full revenue.
How to compute VAT
There are two everyday calculations, and the calculator above does both. Use the first when you have a price and need to add VAT, and the second when you have a VAT-inclusive total and need to find the VAT inside it.
Who needs to register for VAT?
The UAE has two registration thresholds, both measured on taxable supplies and imports over a rolling 12-month period.
Mandatory at AED 375,000. Once your taxable supplies and imports exceed AED 375,000, registration with the FTA is compulsory. You have 30 days to apply, and late registration carries an AED 10,000 penalty.
Voluntary at AED 187,500. Between AED 187,500 and AED 375,000 you may register voluntarily. Many businesses do, to recover input VAT on their costs and to look established to corporate clients.
Below AED 187,500 you cannot register and do not charge VAT. Note that zero-rated supplies still count as taxable supplies for the threshold test, so exporters can be required to register even though they charge 0 percent.
Setting up a mainland LLC, Free Zone, or Offshore company, and want VAT lined up from day one? Our UAE team handles the registration with the FTA and the periodic returns that follow.
VAT rates at a glance
The three treatments under the UAE VAT Law, summarised.
| Treatment | Applies to |
|---|---|
| 5% | Most goods and services supplied in the UAE, and imports |
| 0% | Exports outside the GCC, international transport, investment-grade precious metals, and the first supply of new residential property |
| Exempt | Certain financial services, bare land, local passenger transport, and residential property after the first supply |
UAE VAT questions
What businesses ask before they register.
What is the VAT rate in the UAE?
The standard rate is 5 percent on most goods and services. Exports outside the GCC, international transport, and certain other supplies are zero-rated.
When is VAT registration mandatory?
When your taxable supplies and imports exceed AED 375,000 over any rolling 12-month period. You have 30 days from crossing the line to register, and late registration carries an AED 10,000 penalty.
Can I register voluntarily?
Yes. If your taxable supplies and imports are between AED 187,500 and AED 375,000, you may register voluntarily. This lets you recover input VAT on your costs.
How do I add VAT to a price?
Multiply the price by 1.05. An AED 1,000 price becomes AED 1,050, of which AED 50 is VAT.
How do I find the VAT inside a total?
Divide the total by 1.05 to get the price before VAT. An AED 1,050 total breaks down to AED 1,000 net and AED 50 VAT.
What is the difference between zero-rated and exempt?
Zero-rated sales are taxable at 0 percent, so you can recover input VAT on related purchases. Exempt sales sit outside VAT entirely, and you cannot recover related input VAT.
Do zero-rated supplies count toward the threshold?
Yes. Zero-rated supplies are taxable supplies, so they count toward the AED 375,000 mandatory and AED 187,500 voluntary thresholds. Exporters can be required to register even though they charge 0 percent on their sales.
Are Free Zone companies subject to VAT?
Most Free Zone companies are. A small list of Designated Zones is treated outside the UAE for VAT on certain transactions, but the FTA rules are specific. We confirm your treatment at setup.
Talk to our UAE team
Setting up or registering for VAT in the UAE? We handle company formation on the mainland or in a Free Zone, FTA registration for your Tax Registration Number, VAT-compliant invoicing, and your periodic VAT returns.