UAE VAT Calculator

Free Online VAT Calculator for United Arab Emirates - Accurate 5% Tax Calculations



🇦🇪 UAE VAT Calculator

Simple & accurate VAT calculation

UAE Standard Rate %

UAE VAT Calculator - Complete Guide

Our UAE VAT calculator helps businesses and individuals calculate Value Added Tax (VAT) accurately according to UAE Federal Tax Authority regulations. Whether you need to add VAT to your prices or extract VAT from inclusive amounts, this tool provides instant, precise calculations.

What is UAE VAT?

Value Added Tax (VAT) in the UAE is a consumption tax applied to most goods and services. Introduced on January 1, 2018, the standard VAT rate is 5% - one of the lowest globally. The UAE Federal Tax Authority (FTA) oversees VAT implementation and compliance.

Key VAT Rates in UAE:

  • Standard Rate: 5% (most goods and services)
  • Zero Rate: 0% (essential items like basic food, healthcare, education)
  • Exempt: No VAT (residential property sales, financial services)

How to Calculate VAT in UAE

Adding VAT (Exclusive to Inclusive):

Formula: Total Price = Base Price + (Base Price × 5%)

Example: AED 100 + (AED 100 × 0.05) = AED 105

Extracting VAT (Inclusive to Exclusive):

Formula: Base Price = Total Price ÷ 1.05

VAT Amount: Total Price - Base Price

Example: AED 105 ÷ 1.05 = AED 100 (VAT: AED 5)

VAT Registration Requirements

Businesses must register for VAT if their annual taxable supplies exceed:

  • Mandatory Registration: AED 375,000 per year
  • Voluntary Registration: AED 187,500 per year

Registered businesses must charge VAT on taxable supplies, file regular VAT returns, and maintain proper records.

VAT Invoice Requirements

VAT invoices in UAE must include:

  • Business name and VAT registration number
  • Customer details
  • Invoice date and sequential number
  • Description of goods/services
  • VAT amount clearly shown
  • Total amount including VAT

Common VAT Scenarios

Retail Businesses:

Display prices including VAT to customers. Use our calculator to determine the base price for accounting purposes.

B2B Services:

Often quote prices excluding VAT. Add 5% VAT for final invoicing to VAT-registered clients.

Import/Export:

VAT applies to imported goods. Exports are typically zero-rated but require proper documentation.

VAT Compliance Tips

  • Keep detailed records of all transactions
  • File VAT returns on time (quarterly for most businesses)
  • Separate VAT-inclusive and VAT-exclusive amounts clearly
  • Claim input VAT on business expenses where eligible
  • Use reliable VAT calculation tools to avoid errors
  • Stay updated with FTA announcements and guidance

Official Resources & Authority Links

🏛️ Government Resources

📋 VAT Guidelines & Forms

🎓 Professional Resources

Frequently Asked Questions

Is VAT calculated on the selling price or cost price?

VAT is calculated on the selling price (the price charged to the customer). For VAT-registered businesses, input VAT on purchases can be reclaimed.

Do I need to register for VAT if my business is below the threshold?

Registration is optional if annual taxable supplies are between AED 187,500 - AED 375,000. Consider registration benefits like input VAT recovery against compliance costs.

How accurate is this UAE VAT calculator?

Our calculator uses the exact formulas specified by UAE FTA regulations. It's accurate for standard 5% VAT calculations but always verify for complex transactions.

Can VAT rates change in the UAE?

Yes, VAT rates can be modified by government decree. The rate has remained at 5% since introduction in 2018. Our calculator allows custom rate input for any future changes.

Why Use Our UAE VAT Calculator?

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Instant Results

Get immediate VAT calculations without manual computation errors

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Mobile Optimized

Calculate VAT on-the-go from any device, anywhere in the UAE

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FTA Compliant

Follows official UAE Federal Tax Authority calculation methods

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Dual Mode

Calculate both VAT-inclusive and VAT-exclusive amounts easily