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UAE VAT Calculator

Updated June 2026 · Based on UAE Federal Tax Authority (FTA) rules

Add 5% VAT to a net price, or remove the VAT already included in a gross price — instantly.

You entered a net price — we'll work out the VAT and the VAT-inclusive total.

UAE standard VAT is 5%. Change it only for zero-rated (0%) or custom scenarios.

Quick answer

UAE VAT is a 5% value-added tax applied to most goods and services since 1 January 2018, administered by the Federal Tax Authority. To add VAT, multiply the net price by 1.05. To remove VAT from a VAT-inclusive (gross) price, divide it by 1.05 — the VAT element is the gross price minus the net.

UAE VAT formulas (5%)
To calculateFormula
Add VAT to a net priceNet × 1.05 = Gross
VAT amount on a net priceNet × 0.05
Remove VAT from a gross priceGross ÷ 1.05 = Net
VAT contained in a gross priceGross − (Gross ÷ 1.05)

How is UAE VAT calculated?

The UAE applies a standard 5% VAT rate (introduced 1 January 2018), administered by the Federal Tax Authority (FTA). There are two common calculations:

  • Adding VAT: VAT = net price × 5%. Gross = net + VAT.
  • Removing VAT: Net = gross ÷ 1.05. VAT = gross − net.

Example

For a net price of AED 1,000: VAT = 1,000 × 5% = AED 50, and the gross price is AED 1,050. Working backwards from AED 1,050: net = 1,050 ÷ 1.05 = AED 1,000.

Standard, zero-rated and exempt

Not every supply is taxed at 5%. Zero-rated (0%) supplies include qualifying exports, international transport, and certain healthcare and education. Exempt supplies include some financial services and residential property leases. Confirm your supply's treatment with the FTA or your tax adviser.

Estimate for guidance only — not tax advice. Source: Federal Tax Authority (tax.gov.ae).

Frequently asked questions

What is the VAT rate in the UAE?
The standard rate is 5% (since 1 January 2018). Some supplies are zero-rated (0%) and others are exempt.
How do I add 5% VAT to a price?
Multiply the net price by 0.05 for the VAT, then add it. AED 1,000 × 5% = AED 50 VAT → AED 1,050 gross.
How do I remove VAT from a gross price?
Divide the gross price by 1.05 to get the net; the difference is the VAT. AED 1,050 ÷ 1.05 = AED 1,000 net (AED 50 VAT).
Is this the same calculation the FTA uses?
Yes — it uses the standard 5% FTA rate. Always confirm whether your supply is standard-rated, zero-rated or exempt before issuing a tax invoice.

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