UAE VAT
UAE VAT Calculator: Add or Remove 5% VAT
Calculate UAE VAT on a tax-exclusive or tax-inclusive amount and understand the formula behind the standard 5% rate.
Reviewed against official UAE sources ·
QUICK ANSWER
How do I calculate 5% VAT in the UAE?
For a standard-rated UAE supply, VAT is 5% of the tax-exclusive value. Multiply the net amount by 0.05 to find VAT and by 1.05 to find the total. For a VAT-inclusive total, divide by 21 to find the VAT component.
Applies to taxable supplies unless a zero rate, exemption or outside-scope treatment applies.
Use when the starting price excludes VAT.
Use to find the VAT included in a price that already contains 5% VAT.
INTERACTIVE TOOL
Calculate 5% UAE VAT
Arithmetic only. Confirm whether the supply is standard-rated, zero-rated, exempt or outside the scope before using the result on an invoice.
How to add 5% UAE VAT
For a tax-exclusive amount, multiply the amount by 5% to calculate VAT, then add it to the original amount.
- VAT = tax-exclusive amount × 0.05.
- Total including VAT = tax-exclusive amount × 1.05.
- Example: AED 1,000 net produces AED 50 VAT and AED 1,050 total.
How to remove VAT from an inclusive price
Do not subtract 5% from a VAT-inclusive total. Divide the total by 1.05 to find the net value, or divide it by 21 to find the VAT component.
- Net amount = VAT-inclusive total ÷ 1.05.
- VAT component = VAT-inclusive total ÷ 21.
- Example: AED 1,050 gross contains AED 50 VAT and AED 1,000 net value.
When the calculator should not be used
The calculator assumes one standard-rated supply at 5%. It does not determine whether a transaction is standard-rated, zero-rated, exempt or outside the scope, and it does not replace invoice-level rounding or special calculation rules.
- Confirm the VAT treatment before calculating the amount.
- Review mixed invoices item by item.
- Apply the required exchange rate and show VAT in AED for foreign-currency tax invoices.
- Keep the calculation with the supporting tax invoice.
Ask TaxGPT about your situation
Common questions
How do I calculate 5% VAT in the UAE?
Multiply the VAT-exclusive amount by 0.05. Add that VAT to the net amount, or multiply the net amount by 1.05 to calculate the VAT-inclusive total.
How do I remove VAT from a VAT-inclusive price?
Divide the VAT-inclusive total by 1.05 to find the net amount. Divide the total by 21 to find the VAT component included at a 5% rate.
Is every UAE sale subject to 5% VAT?
No. The standard rate is 5%, but some supplies are zero-rated, exempt or outside the scope under the applicable UAE VAT rules.
Can this calculator determine whether VAT applies?
No. It performs arithmetic only. The nature of the supply, parties, location and supporting evidence determine the correct VAT treatment.
Official sources
These primary UAE sources support the figures and rules summarised above. Review the source and any later amendment before acting.