UAE VAT Calculator (Add or Remove 5% VAT)

How is VAT calculated in the UAE?

The UAE has charged value added tax at a standard rate of 5% since 1 January 2018. It is run by the Federal Tax Authority. The calculator does the maths in both directions:

• Adding VAT: price before VAT x 1.05 = price with VAT. The VAT itself is the price x 0.05.
• Removing VAT: price with VAT / 1.05 = price before VAT. The VAT inside the total is the total x 5 / 105.

A common mistake is to take 5% off a VAT-inclusive total. That gives the wrong answer, because the 5% was charged on the smaller, pre-VAT amount. Dividing by 1.05 gets it right.

Worked examples

Adding VAT to a quote

A freelancer quotes AED 200 before VAT. VAT is 200 x 0.05 = AED 10, so the client pays AED 210.

Finding the VAT in a receipt

Your receipt shows AED 1,050 including VAT. The price before VAT is 1,050 / 1.05 = AED 1,000, and the VAT is 1,050 x 5 / 105 = AED 50. If you had simply taken 5% of 1,050, you would get AED 52.50, which is wrong. In the calculator, choose "Including VAT" and enter the total to get the split straight away.

Rules to know

Zero rated and exempt both mean you pay no VAT as a customer. The difference matters to businesses: on zero rated sales they can still reclaim the VAT they paid on their own costs, while on exempt sales they cannot.

When does a business have to register?

• Mandatory: when taxable supplies go above AED 375,000 in the last 12 months, or are expected to in the next 30 days.
• Voluntary: when taxable supplies or expenses go above AED 187,500.

Our guide to UAE VAT and corporate tax covers registration, invoices and returns. If you run a company, you may also want the corporate tax calculator.

Can tourists get VAT back?

Yes. Visitors can claim back part of the VAT on goods bought from shops in the tax free scheme, run by Planet. The main conditions are a minimum spend of AED 250 at a participating store, and the goods leave the UAE with you.

According to the FTA in 2026, the refund is 87% of the VAT paid, minus a fee of AED 3.60 per purchase. On a AED 1,050 purchase with AED 50 VAT, that is 50 x 0.87 = 43.50, minus 3.60 = AED 39.90 back. Note that the u.ae government portal still shows older figures (85% and AED 4.80), so check the current terms at the validation counter before you rely on an exact amount.

Before you fly, it is also worth checking your duty free limits with our customs allowance checker.

Tips

• Prices shown to consumers in the UAE should already include VAT, so the shelf price is what you pay.
• For business invoices, always check whether a quote is before or after VAT. A missing 5% adds up on large contracts.
• Round VAT to the nearest fils at the end, not at each line, to avoid small differences.
• Only VAT registered businesses can charge VAT. A supplier who adds 5% should show its tax registration number (TRN) on the invoice.