UAE VAT Calculator 2026

The standard UAE VAT rate is 5%, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. It applies to most goods and services unless specifically zero-rated or exempt.

VAT exclusive: multiply the net amount by 0.05 (e.g. AED 1,000 × 0.05 = AED 50 VAT, total AED 1,050). VAT inclusive: divide the total by 1.05 to get the net (e.g. AED 1,050 ÷ 1.05 = AED 1,000 net, AED 50 VAT). This calculator handles both directions.

VAT exclusive means the price shown is the net amount and VAT is added on top. VAT inclusive means the price already contains VAT, and you back-calculate the net amount and tax. UAE FTA requires registered businesses to issue tax invoices showing both clearly.

Zero-rated supplies under Article 45 of FDL 8/2017 include direct and indirect exports of goods and services outside the GCC implementing states, international transportation, supplies of investment-grade precious metals, residential property's first supply within 3 years of completion, certain education and healthcare services and crude oil/natural gas. Zero-rated means 0% VAT charged but input VAT is recoverable.

Exempt supplies under Article 46 include financial services (where consideration is implicit, like interest margins), residential property sale or lease (after the first supply), bare land, and local passenger transport. Exempt means no VAT is charged AND input VAT cannot be recovered — a critical difference from zero-rated.

Under Article 48 of FDL 8/2017 and FTA Public Clarification VATP040, reverse charge applies when a UAE VAT-registered recipient self-accounts for VAT on imports of goods and services from outside the UAE. The recipient declares both the output VAT and input VAT on the same return, often netting to zero cash impact if fully recoverable. Common for imported services and intra-GCC supplies.

Cabinet Decision 100 of 2024 lists 25+ designated zones (DAFZA, DMCC, JAFZA, Hamriyah, RAKEZ, Meydan and others) where supplies of goods between designated zones, or to/from outside the UAE, are treated as outside the scope of UAE VAT. Services supplied within or into a designated zone, however, are generally subject to UAE VAT. Confirm classification with your tax advisor.

Mandatory registration applies when taxable supplies and imports exceed AED 375,000 in the past 12 months OR are expected to exceed it in the next 30 days. Voluntary registration is available from AED 187,500. Registration is via the FTA EmaraTax portal. Late registration triggers an AED 10,000 administrative penalty.

Most UAE VAT-registered businesses file quarterly VAT-201 returns. Businesses with annual taxable supplies above AED 150 million may file monthly. Returns and payments are due within 28 days of the end of each tax period. Late filing triggers AED 1,000 (first offence) and AED 2,000 (subsequent within 24 months) plus daily payment penalties.

Input VAT recovery is generally blocked on entertainment expenses (Art. 53 of the Executive Regulations) and on motor vehicles used for personal purposes (even partly). VAT on commercial vehicles used exclusively for business, and on company-employee meals during work travel, is generally recoverable subject to documentation.

This calculator implements the 5% standard rate arithmetic and inclusive/exclusive logic correctly. It does NOT replace a proper VAT-201 return preparation, input/output reconciliation, designated zone treatment review, partial exemption apportionment or voluntary disclosure (Form 211) advisory. Use it for quick estimates; engage a VAT advisor for filing.

Yes. Velmont Crest prepares quarterly VAT-201 returns for Dubai SMEs and mainland/free-zone companies. We review input VAT recovery line by line, handle designated-zone treatment, draft voluntary disclosures (Form 211) where needed, and respond to FTA queries. We are an advisory firm, so we prepare and you file via your EmaraTax account.

VAT exclusive formula: VAT = Net × 0.05; Total = Net × 1.05. VAT inclusive formula: Net = Total ÷ 1.05; VAT = Total − Net (or Total × 5/105). For example, if Total inclusive is AED 1,050: Net = 1,050 ÷ 1.05 = AED 1,000; VAT = 1,050 − 1,000 = AED 50. The calculator above runs both formulas instantly.

Yes. UAE VAT is a federal tax governed by Federal Decree-Law No. 8 of 2017 and administered by the Federal Tax Authority (FTA). The same 5% standard rate, zero-rated list, and exempt list apply across all seven Emirates — Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. There is no Emirate-level VAT variation.

Yes. Only businesses registered with the FTA and holding an active 15-digit Tax Registration Number (TRN) may charge VAT and issue a tax invoice. A tax invoice without a valid TRN is not compliant under Article 65 of FDL 8/2017 — the recipient cannot claim input VAT on it. Verify any supplier's TRN on the FTA EmaraTax portal before paying.

Yes — this calculator works for any UAE business size, VAT-registered or not. Small businesses below the mandatory AED 375,000 registration threshold typically use it to estimate VAT cost on supplier invoices. VAT-registered SMEs use it for quick line-item checks and tax-invoice preparation. For full VAT-201 return preparation, consider Velmont Crest's monthly retainer.

To add VAT, multiply the net price by 1.05 (or add 5% of it). For example, AED 2,000 net + 5% = AED 2,100 gross. To remove VAT (reverse VAT) from a VAT-inclusive total, divide by 1.05: AED 2,100 ÷ 1.05 = AED 2,000 net, with AED 100 as the VAT element. The calculator above runs both add-VAT and remove-VAT directions instantly.

Use the FTA's TRN verification service on the EmaraTax portal (tax.gov.ae): enter the 15-digit Tax Registration Number and the tool confirms whether it is active and returns the registered legal name. Always verify a supplier's TRN before reclaiming input VAT — an invoice quoting an invalid or inactive TRN is not a valid tax invoice under Article 65, so the input VAT on it is not recoverable.

A UAE VAT calculator applies the 5% standard rate set by Federal Decree-Law No. 8 of 2017 to an AED figure and splits it three ways: the net amount, the VAT element and the gross total. Working forwards from a net price it multiplies by 1.05; working backwards from a VAT-inclusive total it divides by 1.05. This one also flags zero-rated, exempt and reverse-charge treatment, because the arithmetic is identical at 0% but the input-VAT recovery consequences are not.

No — this one handles VAT only. UAE corporate tax is a separate regime under Federal Decree-Law No. 47 of 2022, charged at 0% on the first AED 375,000 of taxable income and 9% above that, so the maths does not overlap with the 5% VAT calculation at all. For that, use our separate UAE corporate tax calculator, linked under Related tools above. Most UAE SMEs need both: VAT on every invoice, corporate tax once a year on the profit.