UAE VAT calculator: add or remove 5% VAT.
Standard rate VAT in the UAE is 5%. To add VAT, multiply the net amount by 1.05. To take VAT out of a VAT-inclusive amount, the VAT is 5/105 of it.
Standard rate VAT in the UAE is 5%. To add VAT, multiply the net amount by 1.05. To take VAT out of a VAT-inclusive amount, the VAT is 5/105 of it.
Estimates only, based on the rules in force on 29 September 2026. They are not tax advice and do not replace the figures in EmaraTax.
How it works
- The standard rate of VAT in the UAE is 5% (VAT law, Article 3). Most goods and services sold by a VAT registered business in the UAE carry it.
- Adding VAT: multiply the amount before VAT by 0.05 to get the VAT, or by 1.05 to get the total.
- Removing VAT: when a price already includes VAT, the VAT part is 5/105 of it (about 4.76%), not 5%. Taking 5% off a VAT-inclusive price understates the net figure.
- Some supplies are zero-rated (0%, with input tax still recoverable) and some are exempt (no VAT, and related input tax is not recoverable). The calculator applies the 5% standard rate only.
- A tax invoice must show the VAT amount in AED, whatever currency the price is in.
Worked example
A Dubai design studio quotes AED 10,000 for a project and later receives AED 21,000 including VAT from another client.
| Quote before VAT | 10,000.00 |
| VAT at 5% (10,000 x 0.05) | 500.00 |
| Invoice total | 10,500.00 |
| VAT-inclusive receipt | 21,000.00 |
| VAT inside it (21,000 x 5/105) | 1,000.00 |
| Amount before VAT | 20,000.00 |
The VAT inside a VAT-inclusive figure is 5/105 of it. Here, 5% of 21,000 would wrongly give 1,050.
Frequently asked questions
Is VAT in the UAE always 5%?
5% is the standard rate. Some supplies are zero-rated, such as certain exports and international transport, and some are exempt, such as bare land and some residential property and financial services. Check the treatment before you invoice.
How do I calculate VAT from a total that already includes VAT?
Multiply the total by 5 and divide by 105. For AED 1,050 including VAT, the VAT is AED 50 and the amount before VAT is AED 1,000.
Does a business charge VAT before it is registered?
No. Only a VAT registered business charges VAT and shows its tax registration number on its invoices. Registration is mandatory once taxable supplies pass AED 375,000 in 12 months.
Related terms and guides
Output tax · Input tax · Tax invoice · Zero-rated supply · Exempt supply · VAT registration threshold. Full guide: UAE VAT Filing Calendar 2026: Every Quarterly Deadline. More free tools: UAE tax tools.
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