United Arab Emirates VAT Calculator
Calculate 5% VAT in AED for United Arab Emirates. Add VAT to a net price or extract it from an inclusive price, with worked examples and a printable estimate.
The ordinary UAE standard rate is 5%. Free-zone status alone does not remove VAT. Confirm zero-rating, exemptions, designated-zone goods rules and input-tax eligibility separately.
How to calculate VAT
To add 5% VAT to a net price, multiply the net amount by 1.05. To extract VAT from a gross (VAT-inclusive) price, divide the gross by 1.05 to get the net, then subtract to isolate the tax.
The result assumes the rate you enter applies to the whole amount. Zero-rated, exempt, reverse-charge and blocked-input treatments need separate review. This estimate is not a tax invoice, an e-invoice clearance result or a completed VAT return.
Practical worked examples for United Arab Emirates
Examples updated 2026-10-09. Illustrative transactions, not actual customer records.
Add 5% VAT to a UAE consulting invoice
AED 1,000 net × 5% = AED 50 VAT; total AED 1050.
Assumes a VAT-registered supplier making an ordinary domestic standard-rated supply. The invoice separates the net price, VAT and amount payable.
Extract VAT from an inclusive price
AED 1050 ÷ 1.05 = AED 1,000 net; AED 1050 − AED 1,000 = AED 50 VAT.
Do not subtract 5% of the gross price: the rate applies to the net amount. The VAT fraction of the gross is 5/105.
Apply a commercial discount before tax
AED 1,000 − AED 100 discount = AED 900 net; VAT AED 45; total AED 945.
Assumes an unconditional price discount established before invoicing and shown on the invoice. Later rebates, vouchers and price changes can require different handling or a credit note.
Estimate output less eligible input VAT
Sales AED 10,000 → output VAT AED 500; eligible purchases AED 4,000 → input VAT AED 200; simplified net VAT AED 300.
Assumes all sales and purchases are standard-rated, all purchase tax is recoverable, and all transactions belong to the same period. Imports, reverse charge, exempt activities, adjustments and blocked recovery can change the actual return. A calculator estimate is not a filed return.
Verify before invoicing or filing
Confirm the current rate, registration status, supply classification, recovery eligibility and rounding rules with the authority. The calculator does not check these conditions or submit documents.
FTA — VAT guidance