VAT Calculator UAE 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 — not a registered FTA tax agent — so we prepare and you file via your EmaraTax account.