VAT · 5% standard rate

UAE VAT Calculator (5% VAT)

Calculate United Arab Emirates Value Added Tax (VAT) in UAE Dirhams (AED) quickly and reliably. Tailored for UAE mainland companies, free zone entities, retailers, and consumers, this calculator performs forward and reverse 5% tax calculations in compliance with Federal Tax Authority (FTA) guidelines.

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United Arab Emirates Tax Summary

Tax Name:: Value Added Tax (VAT)
Standard Rate:: 5%
Currency:: AED (AED)
Privacy:: Zero server uploads

Calculation Mode

Select whether to add VAT to a net amount or extract it from a gross total

Net price (excluding VAT)

AED

Base pre-tax amount before tax is applied

Country / PresetVAT · 5%VAT rate %Type to customize

Net Amount

AED 1,000.00

Price excluding tax

VAT Amount (5%)

Tax

AED 50.00

Net × 5%

Gross Total

Calculated

AED 1,050.00

Total including VAT

Formula: AED1,000.00 × (1 + 0.05) = AED1,050.00

Calculated locally in browser

Statutory Tax Rates

United Arab Emirates VAT Rates & Classification

The United Arab Emirates implements a standard VAT rate of 5% across mainland and designated consumer transactions. In line with Federal Decree-Law No. (8) of 2017, certain transactions qualify for a 0% zero-rating (such as exports, international flights, and primary education), while specific activities including financial margin transactions and local passenger transit are exempt from VAT.

Reduced & Zero Rates in United Arab Emirates

0% zero-rate applies to exports of goods and services outside GCC implementing states, international transportation, designated preventive healthcare, basic education services, crude oil, and initial supplies of residential buildings within 3 years of completion.

Compliance & Registration

Who Must Register for UAE VAT?

Under UAE Federal Tax Authority (FTA) regulations, a business resident in the UAE is mandated to register for VAT if its taxable supplies and imports exceeded AED 375,000 over the preceding 12 months, or are expected to exceed AED 375,000 in the upcoming 30 days. Non-resident businesses making taxable supplies in the UAE must register regardless of turnover.

Mandatory ThresholdAED 375,000 annual taxable turnover

Voluntary RegistrationA business may register voluntarily if its annual turnover or expenses exceed AED 187,500.

Practical Examples

Worked VAT Examples for United Arab Emirates (AED)

Solved calculations with statutory rates

Forward Calculation (Net → Gross)5% VAT

Example 1: Add 5% UAE VAT to AED 1,000.00 Net

Generating a commercial tax invoice for software consulting in Dubai or Abu Dhabi.

Net Price:AED 1000.00

VAT Amount (5%):AED 50.00

Gross Total Payable:AED 1050.00

Formula: Total = AED 1,000.00 × (1 + 0.05) = AED 1,050.00 (VAT: AED 50.00)

Reverse Extraction (Gross → Net)5% VAT

Example 2: Remove 5% UAE VAT from AED 525.00 Gross

Extracting net expenditure and input tax from a retail electronics receipt.

Gross Total:AED 525.00

VAT Amount (5%):AED 25.00

Net Base Price:AED 500.00

Formula: Net = AED 525.00 ÷ 1.05 = AED 500.00 (VAT: AED 525.00 - AED 500.00 = AED 25.00)

Common Questions

Frequently Asked Questions About United Arab Emirates VAT

What is the standard VAT rate in the UAE?

The standard VAT rate across the United Arab Emirates is 5%. It was introduced on January 1, 2018, and applies to the majority of commercial and retail transactions.

How do you remove 5% VAT from a UAE total?

To remove 5% VAT from a gross amount in AED, divide the total figure by 1.05. For example, AED 1,050 divided by 1.05 equals AED 1,000 net, with AED 50 representing the 5% VAT portion.

What is the mandatory threshold for VAT registration with the FTA?

The mandatory VAT registration threshold is AED 375,000 in annual taxable turnover. Voluntary registration is permitted once turnover or taxable expenses reach AED 187,500.

Are companies located in UAE Free Zones exempt from VAT?

Not automatically. While certain "Designated Zones" approved by the Cabinet have special rules for transactions between designated entities, standard consumer sales and services delivered from Free Zones to mainland UAE remain subject to 5% VAT.

Does this calculator store financial figures or company invoice details?

Never. LoveEasyTool operates completely client-side in your web browser. No figures, customer names, or calculations are logged or transmitted to our servers.

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