UAE VAT calculator

01

Which VAT calculator do you need?

Use VAT on a price if you have a quote, receipt or invoice. Use VAT you owe the FTA if your business is VAT-registered and you are preparing a return.

This page has two calculators. Choose one at the top before you enter any figures, because they answer different questions.

VAT on a price

For anyone. It adds 5% VAT to a price before tax, or takes the VAT out of a total that already includes it. Use it to check a quote, budget for a purchase or read an invoice.

VAT you owe the FTA

For VAT-registered businesses. It takes the VAT you charged on your sales, subtracts the VAT you can recover on your purchases, and shows what your return is likely to show for the period, with the date it is due.

Before you use either one, check three things:

• Before or including VAT. Look for wording such as “excluding VAT”, “plus VAT” or “including VAT”. If the quote does not say, ask the supplier.
• The type of supply. The 5% rate applies to standard-rated supplies only. Zero-rated and exempt supplies carry no VAT.
• One price or a whole period. A single price goes in the first calculator. Totals for a quarter or month go in the second.

02

How do you calculate VAT on a price in the UAE?

Multiply the price before VAT by 0.05 to get the VAT, then add it. If the price already includes VAT, divide it by 1.05 to find the price before VAT.

The standard VAT rate in the UAE is 5%. What matters is where you start: a price before VAT, or a total that already includes it. The rate is the same either way, but the working is not.

Adding VAT to a price

Say a supplier quotes AED 800 excluding VAT. The VAT is AED 40, so the amount to budget for is AED 840. The AED 40 is the tax, not a rise in the supplier’s price.

Removing VAT from a total

For an invoice of AED 1,050 including VAT, the price before VAT is AED 1,000 and the VAT is AED 50. Removing VAT only splits the total into its two parts. You still pay the full AED 1,050.

Why taking 5% off gives the wrong answer

A total that includes VAT is 105% of the original price, not 100%. Taking 5% off AED 1,050 removes AED 52.50 and leaves AED 997.50, which is wrong. To check your answer, add 5% back to the price before VAT. You should land on the original total.

Keep the full figure until the last step, then round to two decimal places. AED 999 including VAT, for example, is AED 951.43 before VAT and AED 47.57 of VAT.

03

What is the difference between VAT-inclusive and VAT-exclusive prices?

A VAT-exclusive price is the amount before tax. A VAT-inclusive price is that amount with the VAT already added.

At the standard rate, the exclusive amount is 100% of the base price and the inclusive total is 105% of it. That matters most when you compare quotes, because an exclusive quote can look cheaper than it is.

Put both quotes on the same basis first. Here are two quotes for the same standard-rated purchase:

Supplier B looks dearer at first glance, but it is AED 20 cheaper before VAT and AED 21 cheaper once VAT is included.

This compares price only. Check that both quotes cover the same quantities, delivery, installation and any other services before you treat them as equal.

04

What are the UAE VAT rates and exceptions?

The standard UAE VAT rate is 5%. Some supplies are zero-rated and others are exempt, so the answer depends on what is being sold.

VAT has applied in the UAE since 1 January 2018, at 5%. A calculator can do the sums, but it cannot tell you whether a particular supply qualifies for an exception.

Zero-rated supplies

Zero-rated supplies are taxable at 0%. Examples include qualifying exports, certain education and healthcare services, and the first supply of some new residential buildings. Conditions apply, so a service does not qualify simply because it relates to education, health or an overseas customer.

For registered businesses, VAT paid on costs linked to zero-rated supplies can generally be recovered. So getting the category right still matters, even when the customer pays no VAT.

Exempt supplies

Exempt supplies carry no VAT, but they are not the same as zero-rated ones. Examples include certain financial services, bare land, local passenger transport, and residential property that does not qualify for zero-rating. VAT paid on costs linked to exempt supplies generally cannot be recovered.

If an invoice mixes items with different treatments, check it line by line rather than applying 5% to the whole total, and look at the Federal Tax Authority guidance where you are unsure.

05

How do you work out the VAT a business owes the FTA?

Take the VAT you charged on standard-rated sales and subtract the VAT you can recover on business purchases. A positive figure is payable. A negative figure is a refund due to you.

Output VAT is the VAT on your sales. Input VAT is the VAT you paid on purchases used in your business. You can only recover input VAT that is backed by a valid tax invoice and is not blocked by the rules.

An example with VAT to pay

In a quarter, a trading company makes AED 400,000 of standard-rated sales and AED 250,000 of recoverable purchases, both before VAT. Output VAT is AED 20,000 and input VAT is AED 12,500, so the return shows AED 7,500 to pay.

An example with a refund

In the same quarter, a company that bought new equipment makes AED 120,000 of sales and AED 300,000 of recoverable purchases. Output VAT is AED 6,000 and input VAT is AED 15,000, so it has AED 9,000 of excess recoverable VAT. It can ask the FTA for a refund or carry the amount forward.

Since 1 January 2026, excess recoverable VAT has to be used or reclaimed within five years of the end of the tax period in which it arose, under Federal Decree-Law No. 16 of 2025.

The calculator assumes a fully taxable business. Zero-rated sales add no output VAT and do not limit recovery. Exempt sales can reduce how much input VAT you recover, and imports under the reverse charge also appear on the return, so a business with either needs a fuller working.

06

What VAT can a business not recover?

VAT on entertainment for people outside the business, on cars available for personal use, and on free personal benefits for staff is generally blocked.

The rules are in Article 53 of Cabinet Decision No. 52 of 2017, the Executive Regulation of the VAT law. The main blocked groups are:

• Entertainment for people who are not employees. Hospitality for customers, potential customers, officials, shareholders or other owners, such as meals, event tickets or trips, carries no recoverable VAT.
• Motor vehicles available for personal use. This covers road vehicles that carry up to ten people, including the driver. Trucks, forklifts and similar working vehicles are not caught.
• Goods and services for staff to use personally at no charge. VAT on these is blocked unless the law or the employment contract requires the business to provide them.

Outside these groups, VAT is still only recoverable on purchases used for the business and supported by a valid tax invoice. When you use the calculator, enter only purchases that pass both tests.

The rules on employee benefits and on splitting VAT between taxable and exempt activity were updated by Cabinet Decision No. 149 of 2026, so check the current FTA guidance on anything borderline.

07

When is a VAT return due?

The return, and any VAT you owe, are due within 28 days of the end of the tax period.

Most businesses have quarterly tax periods, and the FTA can assign monthly ones. For a quarter ending 31 March, the deadline is 28 April. Returns are filed online through EmaraTax.

Payment follows the same deadline as the return. If the date falls on a weekend or public holiday, confirm the exact date in your EmaraTax account rather than assuming it moves.

Registered businesses must keep their VAT records, including tax invoices issued and received, for at least five years.

Use the calculator to estimate the figure before you prepare the return, then match it against your accounting records. If your question is about how a supply is treated, registration or recovering VAT, speak to a qualified tax advisor.

08

When does a business have to register for VAT?

A UAE-resident business must register once its taxable supplies and imports pass AED 375,000 over the previous 12 months, or are expected to within the next 30 days.

The 12 months roll forward month by month. It is not a check done once at the end of the year.

Voluntary registration is open once taxable supplies and imports, or taxable expenses, pass AED 187,500 on the same basis. Non-resident businesses follow different rules.

Zero-rated supplies count towards the threshold. Exempt supplies do not. So a business that only makes zero-rated sales may still have to register.

09

What are the most common VAT calculation mistakes?

The most common mistake is taking 5% off a total that already includes VAT. Divide by 1.05 instead.

Before you do anything else, write “before VAT” or “including VAT” next to the amount. Then watch for these errors:

• Subtracting 5% from an inclusive total. On AED 105, taking off 5% leaves AED 99.75, not the correct AED 100.
• Taking 5% of the total as the VAT inside it. Five percent of AED 105 is AED 5.25, but the VAT inside that total is AED 5, because the tax was worked out on AED 100.
• Adding VAT twice. If AED 525 already includes VAT, multiplying it by 1.05 gives AED 551.25 and overstates the total.
• Comparing unlike figures. Put competing quotes on the same basis, inclusive or exclusive, before judging their price.
• Applying 5% to everything. Confirm whether a supply is standard-rated, zero-rated or exempt first.
• Recovering VAT on costs linked to exempt sales. That VAT is generally not recoverable, so it does not belong in your input VAT.
• Claiming blocked VAT. Client entertainment and cars available for personal use are the usual examples.

If a result looks wrong, the starting figure is usually the problem, not the formula.

In short: multiply by 1.05 to add VAT, divide by 1.05 to remove it, and for a return, take recoverable purchase VAT away from sales VAT.

Sources: Federal Tax Authority, Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments, and Cabinet Decision No. 52 of 2017 on its Executive Regulation, as amended.