How VAT works in the UAE
Value Added Tax (VAT) was introduced in the United Arab Emirates on 1 January 2018 at a standard rate of 5%. It applies to most goods and services across Dubai, Abu Dhabi, Sharjah, and the rest of the Emirates. Businesses with taxable supplies above AED 375,000 per year must register with the Federal Tax Authority (FTA).
Add VAT (Net → Gross)
If your price is AED 1,000 excluding VAT, the VAT amount is AED 50 and the total is AED 1,050.
Remove VAT (Gross → Net)
If a receipt shows AED 1,050 including VAT, the original price is AED 1,000 and the VAT was AED 50.
Frequently asked questions
What is the VAT rate in the UAE?+
The standard VAT rate is 5%. Some goods and services are zero-rated or exempt.
Who needs to register for VAT?+
Businesses with annual taxable supplies above AED 375,000 must register. Voluntary registration is available above AED 187,500.
Is this calculator accurate?+
Yes. We use the exact FTA formulas. For official filings always verify with your accountant or the FTA portal.