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?
The UAE applies a standard VAT rate of 5% on most goods and services. This has been in effect since 1 January 2018, when the UAE implemented VAT under Federal Decree-Law No. 8 of 2017.
Who needs to register for VAT in the UAE?
Businesses with taxable supplies and expenses exceeding AED 375,000 per year must register for VAT. Voluntary registration is available when taxable supplies or expenses exceed AED 187,500. Registration is done through the Federal Tax Authority (FTA) portal.
What is the Reverse Charge Mechanism (RCM)?
The Reverse Charge Mechanism applies when a VAT-registered business in the UAE imports goods or services from abroad. Instead of the foreign supplier charging VAT, the buyer self-assesses both Output VAT and Input VAT—resulting in a net-zero VAT impact, provided the purchase is for taxable business use.
Can I recover Input VAT on all business purchases?
Not always. Input VAT is only recoverable on purchases that are directly related to taxable supplies, supported by a valid tax invoice with the supplier’s TRN and VAT shown separately. Expenses like entertainment, personal use, and purchases from non-registered suppliers are generally not recoverable.
What’s the difference between Exempt and Zero-rated?
Zero-rated supplies have a 0% VAT rate—if you are the seller, you must still report them in your VAT return and you can recover Input VAT on related costs. Exempt supplies are not taxable, meaning no VAT is charged and you cannot recover Input VAT on related expenses. As a purchaser, you have no reporting obligation for either—only the supplier reports these to the FTA.
Need help with VAT?
Our team helps UAE businesses with VAT registration, filing, and compliance every day.
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