UAE VAT Calculator 2026
UAE VAT Calculator
FTA-accurate · All three modes · Instant results
Result: Add VAT
Net Amount
AED 0.00
VAT Amount
AED 0.00
Total (incl. VAT)
AED 0.00
Formula: Enter an amount above and click Calculate VAT
← Clear and recalculate
Pro tip: Reverse charge applies when a UAE VAT-registered business receives goods or services from an overseas supplier. You self-account for both output and input VAT on the same return. The net cash effect is AED 0 for a fully taxable business.
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What is UAE VAT?
Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 at a standard rate of 5%. It applies to most goods and services at each stage of the supply chain, with the final consumer bearing the cost. Businesses with taxable supplies exceeding AED 375,000 per year are required to register with the Federal Tax Authority (FTA) and collect VAT on eligible sales.
Not all supplies are taxed equally. Zero-rated supplies (such as exports and healthcare) are taxed at 0% but allow businesses to reclaim input VAT. Exempt supplies (such as residential property and local financial services) carry no VAT charge and no input VAT recovery. Use the calculator above to determine the VAT applicable to your transaction in seconds.
Calculate UAE VAT in 3 Steps
1
Pick Your Mode
Choose Add VAT for a net price, Remove VAT if the price already includes tax, or Reverse Charge for imported goods and services.
2
Enter Amount & Rate
3
Get Your Breakdown
See the Maths Behind Each Mode
Three common business scenarios, exactly how each calculation runs.
Net price → Invoice total
Net Price
AED 1,000
VAT @ 5%
AED 50
Invoice Total
AED 1,050
Formula
1,000 × 1.05
Inclusive price → Net & VAT
Gross (incl. VAT)
AED 1,050
Net Amount
AED 1,000
VAT Component
AED 50
Formula
1,050 ÷ 1.05
Imported service → Self-account
Service Value
AED 1,000
Output VAT (5%)
AED 50
Input VAT Claimed
AED 50
Net Cash Impact
AED 0
UAE VAT Rate Guide
Which rate applies to your supply and whether you can recover input VAT.
UAE VAT Rate Reference Table
| Rate | Category | Common Examples | Input VAT Recovery |
|---|---|---|---|
| 5% Standard | Most goods & services | Retail, consultancy, restaurants, entertainment, most imports | ✓ Yes |
| 0% Zero-Rated | Specific categories | Exports, international transport, basic foods, healthcare, education | ✓ Yes |
| Exempt | Financial & residential property | Local financial services, residential rental, bare land | ✗ No |
Frequently Asked Questions
The standard VAT rate in the UAE is 5%, in effect since 1 January 2018. Some goods and services are zero-rated (0%) or fully exempt — use the rate guide above to check which category applies to you.
Divide the VAT-inclusive amount by 1.05, then subtract that figure from the original amount. For example, AED 1,050 inclusive of VAT breaks down to AED 1,000 net and AED 50 VAT. Use the Remove VAT mode above to do this instantly.
Mandatory registration applies once your taxable supplies exceed AED 375,000 in a 12-month period. Voluntary registration is available between AED 187,500 and AED 375,000. Below AED 187,500, registration is not required. Contact our team if you are close to either threshold.
Zero-rated supplies (like exports, healthcare, and education) are taxed at 0%, but the business can still recover input VAT on related costs. Exempt supplies (like residential property and local financial services) charge no VAT, and input VAT on related expenses cannot be recovered. The distinction matters directly for your VAT return.
Reverse charge applies when a UAE VAT-registered business buys goods or services from a supplier outside the UAE. Instead of the supplier charging VAT, the buyer self-accounts for it — reporting the same amount as both output VAT and input VAT on their return. For a fully taxable business, the net cash impact is zero, but both entries must be reported correctly.
VAT on imports is calculated on the CIF value (Cost + Insurance + Freight) plus any applicable customs duty: VAT = (CIF + Customs Duty) x 5%. Keep your customs clearance documents as supporting evidence for your VAT return.
Most businesses file quarterly; high-turnover entities may be required to file monthly. Returns and payment are due 28 days after the end of the tax period, submitted through the FTA’s online portal.
FTA penalties can include fixed fines for late filing, a percentage-based penalty on unpaid tax for incorrect calculations, and escalating daily penalties for late payment. It is worth having a tax advisor review any return you are unsure about before submission.
Only on costs directly related to taxable (standard-rated or zero-rated) supplies. VAT on costs tied to exempt supplies generally cannot be recovered. If your business makes both taxable and exempt supplies, you will need to apportion input VAT — one of the more common areas businesses get wrong.
No — it is built for quick, accurate estimates and everyday invoicing. UAE VAT law includes industry-specific rules, partial exemption calculations, and edge cases this tool is not designed to navigate. For registration, filing, or anything beyond a straightforward calculation, speak to our VAT advisory team.
