· Free tool
UAE VAT Calculator
Add or remove 5% VAT, work out your input and output VAT position, and calculate VAT on a full invoice with standard-rated, zero-rated and exempt items.
- VAT inclusive and exclusive
- Input vs output VAT
- Multi-line invoices
- UAE, KSA, Bahrain, Oman
What do you want to calculate?
Result
Enter an amount and click Calculate.
Estimate your VAT return for a tax period. Output VAT is what you charge on sales; input VAT is what you pay on business purchases. The difference is what you pay to, or reclaim from, the FTA.
VAT position
You have exempt sales. Input VAT linked to exempt supplies generally can’t be recovered, so part of your input VAT may need to be apportioned. Check with your tax agent.
Add each line of your invoice with its price before VAT and its VAT treatment. Standard-rated lines are charged 5%; zero-rated and exempt lines carry no VAT.
Results are estimates for guidance only and are not tax advice. Rates shown are standard rates; check special cases with the FTA or a registered tax agent.
· Formulas
How to calculate VAT in the UAE
The UAE standard VAT rate is 5%. These four formulas cover almost every everyday VAT calculation.
Add VAT to a price
VAT = Price × 0.05
Total = Price × 1.05
AED 2,000 → VAT AED 100 → Total AED 2,100
Remove VAT from a total
Price = Total ÷ 1.05
VAT = Total × 5 ÷ 105
AED 1,575 → Price AED 1,500 → VAT AED 75
Find the price from the VAT
Price = VAT ÷ 0.05
Total = Price + VAT
VAT AED 250 → Price AED 5,000 → Total AED 5,250
Net VAT for your return
Net VAT = Output VAT − Input VAT
Positive = payable · Negative = refundable
AED 10,000 − AED 6,000 = AED 4,000 payable
· VAT returns
Input VAT vs output VAT
Output VAT is the VAT you charge customers on your taxable sales. You collect it on behalf of the Federal Tax Authority (FTA).
Input VAT is the VAT you pay to suppliers on purchases and expenses used for your business. If you hold a valid tax invoice and the expense relates to taxable supplies, you can usually recover it.
At the end of each tax period, you report both in your VAT return on the FTA’s EmaraTax portal. If output VAT is higher, you pay the difference. If input VAT is higher, the excess can be refunded or carried forward.
Worked example — one quarter
· VAT treatment
Standard-rated, zero-rated and exempt supplies
5%
Standard-rated
Most goods and services sold in the UAE. You charge 5% VAT and can recover related input VAT.
0%
Zero-rated
For example, exports outside the GCC, international transport, and certain education and healthcare. No VAT is charged, but you can still recover related input VAT.
—
Exempt
For example, certain financial services, bare land, local passenger transport and some residential property. No VAT is charged, and related input VAT generally can’t be recovered.
· Quick reference
5% VAT on common amounts
| Amount excl. VAT | VAT (5%) | Total incl. VAT |
|---|---|---|
| AED 100 | AED 5 | AED 105 |
| AED 500 | AED 25 | AED 525 |
| AED 1,000 | AED 50 | AED 1,050 |
| AED 5,000 | AED 250 | AED 5,250 |
| AED 10,000 | AED 500 | AED 10,500 |
| AED 50,000 | AED 2,500 | AED 52,500 |
| AED 100,000 | AED 5,000 | AED 105,000 |
· Key facts
UAE VAT at a glance
2018
VAT introduced in the UAE on 1 January 2018
5%
Standard VAT rate on most goods and services
AED 375K
Mandatory registration threshold for taxable supplies and imports
AED 187.5K
Voluntary registration threshold
28 days
Typical deadline to file and pay after the tax period ends
FTA
Federal Tax Authority, with returns filed on EmaraTax
· FAQs
UAE VAT calculator FAQs
What is the VAT rate in the UAE?
The standard VAT rate in the UAE is 5%, in place since VAT was introduced on 1 January 2018. Some supplies, such as exports, are zero-rated at 0%, and others, such as certain financial services, are exempt.
How do I calculate 5% VAT on an amount?
Multiply the amount by 0.05 to get the VAT, or by 1.05 to get the total including VAT. For example, VAT on AED 1,000 is AED 50, making a total of AED 1,050.
How do I remove VAT from a VAT-inclusive price?
Divide the VAT-inclusive total by 1.05 to get the price before VAT. The VAT is the total multiplied by 5 and divided by 105. For example, AED 1,050 including VAT is AED 1,000 plus AED 50 VAT.
What is the difference between input VAT and output VAT?
Output VAT is the VAT you charge on your sales. Input VAT is the VAT you pay on business purchases and expenses. In your VAT return, you subtract input VAT from output VAT; a positive result is payable to the FTA and a negative result can be refunded or carried forward.
Who has to register for VAT in the UAE?
Businesses must register if their taxable supplies and imports exceeded AED 375,000 in the previous 12 months, or are expected to exceed it in the next 30 days. Businesses above AED 187,500 can register voluntarily.
What is the difference between zero-rated and exempt supplies?
Both carry no VAT for the customer. With zero-rated supplies, you can still recover the input VAT on related costs. With exempt supplies, you generally cannot recover the related input VAT.
When are UAE VAT returns due?
VAT returns are usually filed quarterly, though some businesses file monthly. The return and payment are generally due within 28 days after the end of the tax period, filed through the FTA’s EmaraTax portal.
Can accounting software calculate VAT automatically?
Yes. Accounting software such as QuickBooks, Zoho Books, Tally Prime and Odoo can apply VAT to invoices automatically, track input and output VAT, and prepare VAT return reports, which saves time and reduces errors.
Stop calculating VAT by hand
Perfonec sets up QuickBooks, Zoho Books, Tally Prime and Odoo with UAE VAT configured from day one, so invoices, VAT returns and e-invoicing are handled for you.