Global VAT Calc

UAE VAT Calculator

Last reviewed 16 October 2026

One of the world's lowest VAT rates — 5% in the UAE — with the registration thresholds and zero-rated lists that actually matter for invoicing.

Net (excl. VAT)—
VAT amount—
Gross (incl. VAT)—
All rates

The UAE’s 5% VAT

The United Arab Emirates introduced VAT in 2018 at a single rate of 5% — one of the lowest standard rates in the world. Alongside it, specific categories are zero-rated (exports, international transport, certain education and healthcare, some investment metals) or exempt (certain financial services, some residential real estate). Zero-rated supplies allow input VAT recovery; exempt ones generally do not.

Dirhams at 5%

  • AED 1,000 net → AED 1,050 (VAT AED 50).
  • AED 1,050 ÷ 1.05 = AED 1,000 net.
  • AED 20,000 net → AED 21,000; AED 42,000 gross → AED 40,000 net (VAT AED 2,000).

Because the rate is small, the “divide by 1.05” and “subtract 5%” answers are close — but not identical. On AED 1,050: the correct net is AED 1,000; subtracting 5% from the gross would incorrectly give AED 997.50. Always divide.

Registration and filing basics

  • Mandatory registration: when taxable supplies exceed AED 375,000 over 12 months (or are expected to within the next 30 days). Voluntary registration is possible from AED 187,500.
  • Filing: VAT returns (VAT 201) are typically filed quarterly or monthly, with payment due by the 28th of the month following the period — a deadline with no extension culture, so diarise it.
  • Authority: the Federal Tax Authority (FTA) administers VAT; invoices must be issued in Arabic or bilingual Arabic/English where required.

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UAE VAT questions

What is the VAT rate in the UAE?

5% — a single standard rate since VAT was introduced in 2018. Some supplies are zero-rated or exempt.

When must a UAE business register for VAT?

Mandatory registration applies when taxable turnover exceeds AED 375,000 over 12 months; voluntary registration is available from AED 187,500.

How do I remove 5% VAT from a price?

Divide by 1.05. AED 1,050 becomes AED 1,000 net with AED 50 of VAT. Subtracting 5% would give the wrong answer.

When are UAE VAT returns due?

Returns (VAT 201) are usually filed quarterly or monthly, with payment due by the 28th of the following month.

Do exports get VAT relief in the UAE?

Exports are generally zero-rated — no VAT charged, and related input VAT can be recovered, subject to the FTA's conditions.

Checked against Federal Tax Authority sources on 16 October 2026 · Methodology · Editorial standards · Report an error