Free tool
UAE VAT Calculator
Add or remove 5% VAT in seconds. Enter an amount below to see the net, VAT and gross figures, then book a consultation for the exact position on your supplies. This tool is for guidance only and is not tax advice.
The price before VAT is added.
Standard rate is 5%. Use 0% for zero-rated supplies.
This is a quick estimate for guidance only. It is not tax advice and does not determine whether a supply is standard rated, zero rated or exempt.
VAT to add
AED 0.00
Enter an amount to see the breakdown
- Net amount
- AED 0.00
- VAT (5%)
- AED 0.00
- Gross amount
- AED 0.00
Need help with VAT registration or filing?
Ledger Wise handles UAE VAT registration, returns and FTA compliance end to end, so your filings are accurate and on time.
How VAT is calculated in the UAE
Value Added Tax in the UAE is charged at a standard rate of 5% on most goods and services supplied by VAT registered businesses. VAT is calculated on the net, VAT exclusive price of a supply: the business adds 5% to that price to arrive at the VAT amount, then adds the VAT to the net price to get the gross, VAT inclusive price the customer actually pays.
Whether you need to add or remove VAT depends on what figure you are starting from. If you are quoting or invoicing from a net price, such as a cost price or a target margin, you add VAT to reach the amount to charge. If you already have a VAT inclusive price, for example a receipt, a supplier invoice, or a retail price, you remove VAT to work out the underlying net amount and the VAT portion within it.
Not every supply is taxed at the standard 5% rate. Some supplies are zero-rated, such as specific exports, and are taxed at 0% while still allowing input VAT recovery. Others are exempt, such as specific financial services and residential leases, with no VAT charged and no input VAT recovery. Correctly identifying which treatment applies to a supply, and keeping accurate VAT records and returns, is what keeps a business compliant with the Federal Tax Authority.
Questions
VAT calculator, answered.
- The standard VAT rate in the UAE is 5%. It applies to most goods and services supplied by VAT registered businesses, unless a specific supply is zero-rated or exempt under the VAT law.
- Multiply the net (VAT exclusive) price by 5% to get the VAT amount, then add it to the net price to get the gross (VAT inclusive) price. For example, on AED 1,000 the VAT is AED 50, making the gross price AED 1,050.
- Divide the gross (VAT inclusive) price by 1.05 to get the net price, then subtract the net price from the gross price to get the VAT amount. For example, AED 1,050 divided by 1.05 gives a net price of AED 1,000 and VAT of AED 50.
- Zero-rated supplies are taxed at 0% VAT, and the business can generally still recover input VAT on related costs. Exempt supplies are not subject to VAT, with no VAT charged and no input VAT recovery on related costs. The two are treated differently on a VAT return, so it matters which one applies.
- VAT is calculated on the net (VAT exclusive) amount. The VAT charged is then added to that net amount to arrive at the gross (VAT inclusive) price the customer pays.
- No. It is a quick estimate using the standard 5% rate for guidance only. Whether a specific supply is standard rated, zero-rated or exempt depends on UAE VAT law. For an exact position, book a consultation with Ledger Wise.
Get your VAT registration and filing sorted.
Book a consultation and we will review your supplies, confirm the right VAT treatment and handle registration and filing with the FTA.