VAT Calculator
UAE 2026
Instantly add or remove 5% VAT from any amount in AED. Accurate results for businesses across Dubai and the UAE.
Calculate VATExamples
| Transaction | Treatment | Net (AED) | VAT Rate | VAT (AED) | Gross (AED) |
|---|---|---|---|---|---|
| Office supplies (purchase) | Standard 5% | 500 | 5% | 25 | 525 |
| Consulting fee (sale) | Standard 5% | 10,000 | 5% | 500 | 10,500 |
| Export of goods | Zero-rated | 8,000 | 0% | 0 | 8,000 |
| Residential rent | Exempt | 5,000 | — | 0 | 5,000 |
| Import from abroad | RCM 5% | 3,000 | 5% | 150* | 3,000 |
| Personal expense | Out of Scope | 200 | — | 0 | 200 |
*RCM: VAT is self-assessed as Output VAT and simultaneously recovered as Input VAT — net zero cost to the business.
Understanding UAE VAT
What Is VAT in the UAE?
An indirect tax applied at each stage of the supply chain on most goods and services, under Federal Decree-Law No. 8 of 2017.
VAT Registration
- Mandatory — taxable supplies and expenses exceed AED 375,000/year
- Voluntary — supplies or expenses exceed AED 187,500/year
- Deadline — apply within 30 days of crossing the threshold
- Penalty — AED 10,000 for late registration
- Cost — free via the EmaraTax portal (~20 business days)
VAT Return Filing
- Frequency — quarterly (monthly if turnover > AED 150M)
- Deadline — within 28 days after the tax period ends
- Nil returns — mandatory even with zero transactions
- Late filing — AED 1,000 first offence, AED 2,000 repeat
Frequently Asked Questions
What is the UAE VAT rate?
In the UAE, the standard VAT rate is 5%, which is applied to most goods and services. However, some goods and services attract a 0% VAT rate (zero-rated supplies) while a few are VAT exempt. These VAT rates have been in effect since 1st January 2018, when the UAE introduced VAT under the Federal Decree-Law No. 8 of 2017.
Who needs to register for VAT in the UAE?
If your taxable supplies and expenses exceed AED 375,000 per year, you must register for VAT. You can also voluntarily register when your taxable supplies and expenses exceed AED 187,500. Registration is done through the Federal Tax Authority (FTA) portal.
What is the Reverse Charge Mechanism (RCM)?
When a VAT-registered UAE business imports goods or services from abroad, instead of the foreign supplier charging VAT, the buyer self-assesses output and input VAT. This mechanism is known as the Reverse Charge Mechanism (RCM), and it results in a net-zero VAT impact, provided the purchase is for taxable business use.
Can I recover Input VAT on all business purchases?
No, input VAT is only recoverable when the purchases are directly related to taxable supplies and supported by a valid tax invoice with the supplier’s TRN and VAT shown separately. Generally, expenses like entertainment, personal use, and purchases from non-registered suppliers are not recoverable.
What’s the difference between Exempt and Zero-rated?
The difference between exempt and zero-rated supplies lies in the recoverability of input VAT. You may believe that you are not paying any VAT on both exempt and zero-rated supplies. However, a 0% VAT rate is applicable on zero-rated supplies, and in contrast, no VAT is charged on exempt supplies. So, since VAT is technically charged on the zero-rated supplies you sell, you can recover the input VAT on related costs. But you cannot recover input VAT related to the exempt supplies you sold since no VAT was applied.
How to calculate VAT tax?
You must first identify whether the product in question is a zero-rated (0% VAT), standard-rated (5% VAT), or exempt supply (no VAT). If the product is standard-rated, you can simply apply the 5% VAT on the base price. In the case of imported goods, the base price will be the sum of cost, insurance, freight, customs duty, and excise tax.
How to add VAT to a price in the UAE?
Given that a product is a standard-rated supply, you can add the 5% VAT to the price by simply adding 5% of the base price to the base price. Or, you could multiply the base price by 1.05.
How to remove VAT from a total amount?
You can remove VAT from a total amount by dividing it by 1.05. By doing so, you will arrive at the base price for the product.
What is VAT inclusive vs VAT exclusive price?
VAT-inclusive price is the sum of VAT plus the base price, which can also be called the VAT-exclusive price.
How to calculate a VAT refund in the UAE?
Calculating VAT refunds is a multi-step process. First, you must classify expenses based on whether they were used to produce taxable or exempt supplies. For VAT paid on costs that support taxable as well as exempt supplies, i.e., residual input VAT, you typically need to apply the standard apportionment method, any other approved special method, or Specified Recovery Percentage (SRP) to find the recoverable residual input VAT. Then, you must take the sum of input VAT paid to produce taxable supplies and recoverable residual input VAT to arrive at the VAT refund.
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