How to use this calculator
- Enter the amount in AED.
- Choose whether the amount already includes VAT or not.
- Click Calculate and use the breakdown: net amount, VAT amount and gross amount.
Formula — how it is calculated
The UAE introduced VAT on 1 January 2018 under Federal Decree-Law No. 8 of 2017, administered by the Federal Tax Authority. The standard rate of 5% applies to most goods and services supplied in the UAE. Exports, international transport, certain financial services and residential property (beyond the first supply) are zero-rated or exempt, which matters for your tax return but not for a standard price calculation.
Adding VAT: VAT = net amount × 0.05, and the total is net × 1.05. Removing VAT: the net amount is the gross amount ÷ 1.05, and the VAT inside a gross price is gross − net. For example, at 5% the VAT inside a gross price is 4.76% of that price — not 5% of it — which is why subtracting 5% directly always gives the wrong answer.
Worked example
A Dubai trading company quotes AED 1,000 for a service before tax. VAT at 5% is 1,000 × 0.05 = AED 50, so the client pays AED 1,050. Working backwards, if a receipt shows AED 1,050 including VAT, the net is 1,050 ÷ 1.05 = AED 1,000 and the tax inside it is AED 50. Notice that 5% of 1,050 would be AED 52.50 — the wrong figure, and the exact mistake the Remove VAT mode prevents.
Frequently asked questions
What is the VAT rate in UAE?
The standard rate of VAT in UAE is 5%. Some supplies are zero-rated or exempt — exports and certain sectors, for example — but 5% is the rate that applies to most goods and services.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.05. The result is the net amount; the difference between the two figures is the VAT. Never subtract 5% of the gross price — that overstates the tax.
How do I show VAT on an invoice?
Show the net amount, the VAT rate and VAT amount, and the total payable as separate lines — exactly the three figures this calculator gives you. Registered businesses must issue tax invoices that meet the tax authority's format rules.
Who must register for VAT in UAE?
Businesses in the UAE must register when their taxable supplies exceed AED 375,000 in a year, and may register voluntarily from AED 187,500. Registration and filing are handled through the Federal Tax Authority (FTA).
Does this calculator store my figures?
No. The calculation runs entirely in your browser. Nothing you enter is sent to or kept on a server.