Instantly calculate 5% VAT in the UAE. Ideal for Dubai & Abu Dhabi businesses, freelancers, and accountants. Supports reverse VAT and Excel formulas.
Using this UAE VAT Calculator is simple and instant. Follow these steps to calculate VAT accurately for any amount in AED:
This tool is useful for business owners, freelancers, shoppers, and accountants who need quick VAT calculations without manual formulas.
VAT (Value Added Tax) in the UAE is an indirect tax applied to most goods and services sold in the country. It is collected at each stage of the supply chain and ultimately paid by the final consumer.
The UAE introduced VAT to diversify government revenue while keeping tax rates relatively low compared to global standards. VAT is regulated by the Federal Tax Authority (FTA), which oversees registration, compliance, and reporting.
VAT applies to most everyday transactions, including retail purchases, professional services, and digital products, with certain supplies treated as zero-rated or exempt under UAE tax law.
VAT in the UAE is regulated by the Federal Tax Authority (FTA)(opens in a new tab), which defines how VAT is applied, collected, and reported across the country.
Businesses and individuals must charge VAT if they are registered or required to register with the Federal Tax Authority (FTA)(opens in a new tab).
Typically, VAT registration becomes mandatory when taxable supplies exceed the FTA’s mandatory registration threshold. Once registered, the business must:
Some businesses may register voluntarily, even if they are below the mandatory threshold, to improve compliance and credibility.
⚠️ Registration requirements depend on turnover, activity type, and FTA regulations.
The United Arab Emirates introduced Value Added Tax (VAT) at a standard rate of 5% under the Federal Tax Authority (FTA). This calculator helps you comply accurately with VAT-inclusive and VAT-exclusive pricing.
Used when pricing goods. Amount × 1.05 = Total Example: 100 × 1.05 = AED 105
How to calculate VAT from the total amount. Total ÷ 1.05 = Base Example: 105 ÷ 1.05 = AED 100
| Goal | Excel Formula | Example (Cell A1 = 100) |
|---|---|---|
| Calculate VAT Amount only | =A1 * 0.05 | 5.00 |
| Calculate Total (with VAT) | =A1 * 1.05 | 105.00 |
| Remove VAT (Reverse) | =A1 / 1.05 | 95.24 |
Freelancers and small businesses in the UAE are not automatically exempt from VAT.
If a freelancer or sole proprietor provides taxable services and meets the FTA registration criteria, they must:
Common examples include:
Freelancers working with VAT-registered companies are often expected to issue VAT invoices, making registration practically necessary in many cases.
Understanding VAT-inclusive and VAT-exclusive pricing is essential to avoid calculation errors.
Example:
If a service costs AED 1,000 (exclusive), VAT is added to calculate the final amount.
Example:
If a product costs AED 1,050 (inclusive), the VAT amount is part of that total.
This UAE VAT Calculator supports both scenarios, eliminating the need for manual formulas.
This calculator is provided for general informational purposes only and does not constitute tax, legal, or financial advice.
VAT rules and registration requirements are governed by the Federal Tax Authority (FTA)(opens in a new tab) and may change over time. For official guidance, compliance confirmation, or complex tax situations, consult the FTA or a licensed tax professional in the UAE.
VAT in UAE is calculated at a standard rate of 5%. To add VAT, multiply your amount by 0.05. To get the total price (Gross), multiply the original amount by 1.05.
5% VAT in Dubai is the same as the federal UAE tax. It applies to most goods and services, including food, electronics, and consulting. If you buy an item for AED 100, you will pay AED 5 in tax.
To calculate VAT in Excel: 1) For exclusive tax, use the formula '=A1*0.05'. 2) For inclusive tax (extracting VAT), use the formula '=A1-(A1/1.05)'.
To calculate the pre-tax price from a total amount (reverse calculation), divide the total by 1.05. For example: 105 ÷ 1.05 = 100.
Standard 5% Rate
