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UAE VAT Calculator - Calculate 5% VAT Instantly

Free, accurate online VAT calculator UAE for businesses and individuals in the United Arab Emirates. Calculate VAT inclusive and exclusive amounts with just one click. Perfect for businesses in Dubai and across all Emirates.

VAT Calculator

Calculate VAT inclusive and exclusive amounts instantly

Please enter a valid VAT rate between 0 and 100
Please enter a valid amount greater than 0
Original Amount: AED 0.00
VAT Amount (5%): AED 0.00
Total Amount: AED 0.00

What is VAT in UAE?

Value Added Tax (VAT) is an indirect tax levied on the consumption of goods and services in the United Arab Emirates. Introduced on January 1, 2018, VAT is applied at a standard rate of 5% on most goods and services sold within the UAE.

VAT is a consumption tax that is collected at each stage of the supply chain, from production to the final sale. Businesses registered for VAT collect the tax from their customers and remit it to the Federal Tax Authority (FTA) of the UAE. Understanding VAT calculation in UAE is essential for businesses operating across all Emirates.

  • Standard VAT rate of 5% applies to most goods and services
  • Introduced on January 1, 2018
  • Managed by Federal Tax Authority (FTA)
  • Collected at each stage of supply chain
VAT Calculator and Financial Analysis
Business Invoice and VAT Calculation

VAT Inclusive vs VAT Exclusive

Understanding the difference between VAT inclusive and VAT exclusive amounts is crucial for accurate financial calculations. Knowing these concepts helps you make precise calculations for your business needs.

VAT Exclusive Amount: This is the base price before VAT is added. For example, if a product costs AED 100 (exclusive of VAT), the VAT amount would be AED 5 (5% of 100), making the total AED 105.

VAT Inclusive Amount: This is the final price that already includes VAT. For example, if a product costs AED 105 (inclusive of VAT), the base amount is AED 100 and the VAT amount is AED 5.

  • VAT Exclusive: Base price + 5% VAT
  • VAT Inclusive: Total price (VAT already included)
  • Our calculator handles both scenarios
  • Perfect for invoices and quotes

Who Needs to Pay VAT in UAE?

VAT applies to most businesses operating in the UAE, including those in Dubai. Understanding registration requirements is essential for compliance. Using a VAT calculator can help businesses accurately calculate their VAT obligations.

  • Mandatory Registration: Businesses with annual taxable supplies exceeding AED 375,000 must register for VAT.
  • Voluntary Registration: Businesses with annual taxable supplies between AED 187,500 and AED 375,000 can voluntarily register for VAT.
  • End Consumers: Ultimately, VAT is paid by the end consumer when purchasing goods or services.
  • Businesses: Registered businesses collect VAT from customers and can claim back VAT paid on business expenses (input tax).
UAE Business and Office Building
VAT Calculation Examples and Documents

Examples with Calculations

Here are practical examples of VAT calculation in UAE:

Example 1: Adding VAT
Product priced at AED 1,000 (exclusive of VAT).
VAT Amount = AED 1,000 × 5% = AED 50
Total Amount (inclusive) = AED 1,000 + AED 50 = AED 1,050

Example 2: Removing VAT
Invoice showing AED 2,100 (inclusive of VAT).
Base Amount = AED 2,100 ÷ 1.05 = AED 2,000
VAT Amount = AED 2,100 - AED 2,000 = AED 100

Example 3: Service Fee
Consulting service costs AED 5,000 (exclusive of VAT).
VAT Amount = AED 5,000 × 5% = AED 250
Total Invoice Amount = AED 5,250

Frequently Asked Questions

What is the VAT rate in UAE? ▼
The standard VAT rate in the United Arab Emirates is 5%. This rate applies to most goods and services, with some exceptions for zero-rated and exempt supplies.
How do I calculate VAT in UAE? ▼
To calculate VAT, multiply the amount by 5% (or 0.05). For example, AED 1,000 × 5% = AED 50 VAT. To remove VAT from an inclusive amount, divide by 1.05. Use our calculator above for instant, accurate calculations.
What is the difference between VAT inclusive and exclusive? ▼
VAT exclusive means the price does not include VAT - you add 5% to get the total. VAT inclusive means the price already includes VAT - the base amount is lower than the displayed price. Our calculator handles both scenarios.
Who needs to register for VAT in UAE? ▼
Businesses with annual taxable supplies exceeding AED 375,000 must register for VAT. Businesses with supplies between AED 187,500 and AED 375,000 can voluntarily register. Registration is done through the Federal Tax Authority (FTA) portal.
Is VAT applicable on all goods and services in UAE? ▼
No, not all goods and services are subject to VAT. Some items are zero-rated (like exports and certain healthcare services) or exempt (like residential property sales). Most consumer goods and services are subject to the standard 5% rate.
How often do I need to file VAT returns in UAE? ▼
VAT returns are typically filed quarterly, but businesses with annual supplies exceeding AED 150 million must file monthly returns. Returns are due within 28 days after the end of the tax period.
Can I use this calculator for business invoices? ▼
Yes, our VAT calculator provides accurate calculations suitable for business use. However, always verify calculations for important transactions and ensure compliance with FTA regulations for official documentation.
What happens if I make a mistake in VAT calculation? ▼
If you discover a VAT calculation error, you should correct it in your next VAT return. For significant errors, you may need to issue credit notes or additional invoices. Consult with a tax advisor or the FTA for guidance on corrections.

Need Help with VAT Calculations?

Our free VAT calculator is here to help you with accurate, instant calculations. Whether you're in Dubai or anywhere in the UAE, this tool makes VAT calculation simple. Bookmark this page for quick access anytime.

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