UAE VAT Calculator - Add or Remove 5% VAT Instantly
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Quickly calculate UAE VAT in seconds — just enter your amount, select Add or Subtract VAT, choose the tax rate, and press “Add VAT” to see your results instantly.
Online VAT Calculator
VAT in UAE
VAT Registration Criteria
The UAE government has decided three different slabs according to the annual turnover. The three different slabs are:
- Annual turnover more than AED 375,000/- : VAT registration is necessary
- Annual turnover between AED 187,5000/- and AED 375,000/- : VAT registration is optional
- Annual turnover less than AED 187,500/- : VAT registration is not required
UAE Tax Calculator- How to use?
VAT calculator in UAE gives you two options:
- Add VAT
- Subtract VAT.
Example Calculations
| Calculation Type | Formula | Example |
| Adding VAT | Total Price = Net Price × (1 + VAT Rate) | AED 100 × 1.05 = AED 105 |
| Excluding VAT | Net Price = Gross Price / (1 + VAT Rate) | AED 105 / 1.05 = AED 100 |
Zero-Rated Sectors
In some cases, VAT is charged at 0%. This applies to specific sectors:| Sector | Description |
| Exports | Goods and services sent outside the GCC. |
| International Transportation | Includes related supplies. |
| Certain Transport Vehicles | Aircraft, ships, and similar transportation means. |
| Precious Metals | Investment-grade metals like gold and silver (99% purity). |
| New Residential Properties | Supplied within three years of completion. |
| Education and Healthcare Services | Includes certain education and healthcare goods and services. |
VAT-Exempt Sectors
Some sectors are completely exempt from VAT:| Sector | Description |
| Financial Services | Certain financial services as specified by VAT legislation. |
| Residential Properties | Sale or lease of residential properties. |
| Bare Land | Sale of undeveloped land. |
| Local Transport | Local passenger transportation services. |
Partial Exemption
If a VAT-registered business incurs input tax on its expenses, this tax can be fully recovered if the expenses relate to a taxable supply i.e Standard Rated or Zero Rated. However, if the expenses relate to a non-taxable supply (like exempt supplies), the input tax cannot be recovered. When expenses relate to both taxable and non-taxable supplies (such as in the banking industry), the business must apportion the input tax between the two. The ratio of recoverable input tax to total input tax should be used as the basis for this apportionment, but other fair methods may be used if agreed upon with the Federal Tax Authority.Connect with VAT Experts at NR Doshi & Partners – Your Trusted Tax Advisory in the UAE
VAT regulations within the UAE may prove to be tricky as an organization varies with FTA regulations and strict audit guidelines. In NR Doshi and partners, we ensure that business in Dubai, Abu Dhabi, Sharjah, Bahrain and other regions of the Middle East is well within VAT compliance and get the maximum out of VAT efficiency. To evade penalty and reduce compliance risks, our Certified VAT Consultants offer precise calculations, customized guidance and up to date information on the recent changes related to VAT. Our VAT Services Include:- VAT Consultancy & Advisory – Expert guidance on UAE VAT regulations
- VAT Registration & Deregistration – Hassle-free FTA compliance
- VAT Return Filing – Accurate and timely submissions
- VAT Refund Assistance – Claim what’s rightfully yours
- VAT Compliance Review – Identify gaps before an FTA audit
Frequently Asked Questions
No. The standard UAE VAT rate remains 5% in 2026, unchanged since VAT was introduced in 2018. Don’t confuse this with UAE Corporate Tax, which is a separate 9% tax on qualifying business profits above AED 375,000 — VAT and Corporate Tax are two different taxes with two different rates. Always confirm current rates with the Federal Tax Authority (FTA) or your VAT adviser, as regulations are refined periodically.
Calculate each line item separately based on its VAT treatment — standard-rated (5%), zero-rated (0%), or exempt — then total each category. For example, an invoice combining consulting services (5%) and a residential property lease (exempt) needs the VAT calculated on the taxable line only. This is one of the most common sources of FTA penalties, so for mixed-supply invoices we recommend a quick review by our VAT team — get in touch and we’ll check it for you at no cost.
Zero-rated supplies are charged at 0% VAT but allow input VAT recovery – ideal for exporters and international services. Exempt supplies have no VAT charged and no input VAT recovery – including residential property leases, bare land, and certain financial services. This distinction is crucial for VAT return calculations.
Import VAT is calculated on the CIF value (Cost + Insurance + Freight) plus any customs duty and excise duty: VAT = (CIF + Customs Duty + Excise) × 5%. Keep your customs clearance documents as proof for FTA audit purposes. If you import regularly, our team can set up a standing VAT calculation process for your customs entries — contact us for a free consultation.
When a UAE VAT-registered business buys services from a foreign supplier, the business self-accounts for UAE VAT (reverse charge) instead of the supplier charging it. You report the same amount as both output VAT and input VAT on your return — for a fully taxable business the net effect is zero, but both entries must still be reported correctly. Getting this wrong is a common audit flag; our tax agents can review your reverse-charge entries as part of a VAT health check.
VAT returns are due 28 days after the end of your VAT period (quarterly for most businesses, monthly for high-turnover entities). Net VAT = Total Output VAT (on sales) minus Total Input VAT (on purchases). If the result is positive, you owe the FTA; if negative, you can claim a refund. Want us to calculate your exact position and filing date? Contact our tax team for a free VAT health check.
Only input VAT on purchases directly related to making taxable supplies (standard-rated or zero-rated). VAT on expenses for exempt supplies cannot be recovered. If you make both taxable and exempt supplies, partial exemption rules apply—only a proportion of input VAT is recoverable. This is complex; we recommend a VAT adviser review your position.
FTA penalties include: Late filing: AED 1,000–10,000. Incorrect calculations: Up to 150% of unpaid tax. Failure to register: AED 20,000+. Late payment: 2% if paid within 7 days, then 4% daily (capped at 300%). Misclassification of supplies also attracts penalties. Use our VAT tools correctly and consult a VAT adviser for complex scenarios to avoid costly errors.
The 9% VAT rate applies to specific sectors and supplies announced by the FTA in 2025. Current standard rate is 5%. Check with the Federal Tax Authority or consult our VAT experts to confirm if your sector qualifies. Our calculator allows custom rate selection if you need to model different scenarios.
No. This calculator is for general estimates and learning. UAE VAT rules are complex with many exceptions and industry-specific rules. Always consult a qualified VAT adviser (like NR Doshi’s team) before making compliance decisions. This tool helps you understand VAT concepts and prepare for conversations with your adviser.
UAE VAT has two thresholds: Mandatory registration applies at AED 375,000+ in annual taxable supplies – businesses above this must register immediately. Voluntary registration is available between AED 187,500 and AED 375,000. Businesses below AED 187,500 cannot register. Not sure which bracket your business falls into? Our team can review your turnover and confirm your registration status for free.