UAE VAT calculator
Add 5% VAT to a net amount or extract the VAT from a gross amount. The registration thresholds and the main VAT rules are listed below the result.
Rate
VAT5%
Net (excl. VAT)—
VAT (5%)—
Gross (incl. VAT)—
Estimate on your inputs. Not tax advice or an FTA assessment.
VAT rules in the UAE
- Standard rate: 5% on most goods and services supplied in the UAE. Zero-rated supplies (0%, input VAT can be recovered) include exports of goods, many services supplied to customers abroad, international transport, the first supply of new residential property and certain education and healthcare. Exempt supplies (no input VAT recovery) include local passenger transport, bare land, some financial services and later supplies of residential property.
- Registration is mandatory when taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to exceed it within the next 30 days. You can register voluntarily from AED 187,500 of supplies or expenses. Zero-rated sales count towards the threshold, so exporters usually register to recover input VAT.
- To extract VAT from a gross amount, divide it by 1.05. Multiplying by 0.95 gives the wrong result: on AED 105,000 including VAT, the VAT is AED 5,000, not AED 5,250.
- Returns are usually quarterly, and the return and payment are due within 28 days of the end of the tax period. Late registration costs AED 10,000 and a late return AED 1,000 (AED 2,000 if repeated within 24 months). Unpaid VAT attracts a penalty of 14% a year, charged monthly on the unpaid amount (Cabinet Decision 129/2025, in force since 14 April 2026). The law is Federal Decree-Law No. 8 of 2017 on VAT, as amended. Registration and filing with us: VAT in the UAE.
- E‑invoicing becomes mandatory on 1 January 2027 for businesses with revenue of AED 50 million or more, and on 1 July 2027 for the rest (Ministerial Decision 244/2025, as amended). Details: UAE e‑invoicing.
Frequently asked
When do I have to register for VAT in the UAE?
When your taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to exceed it within the next 30 days. You can register voluntarily from AED 187,500. Zero-rated sales count towards the threshold, so exporters usually register to recover input VAT.
How do I extract VAT from a gross amount?
Divide the gross amount by 1.05. On AED 105,000 including VAT, the net amount is AED 100,000 and the VAT is AED 5,000. Multiplying by 0.95 would give AED 5,250, which is wrong.
What is the difference between zero-rated and exempt supplies?
Neither carries VAT on the sale. With zero-rated supplies (exports, international transport, the first supply of new residential property) you can still recover the VAT you paid on your costs. With exempt supplies (local passenger transport, bare land, some financial services) you cannot.