What is the VAT rate in the UAE?

The UAE applies a flat 5% standard VAT rate, introduced on 1 January 2018. There are no reduced rates; certain supplies are either zero-rated or exempt.

How do I extract VAT from a VAT-inclusive price?

Divide the gross price by 1.05 to find the net amount, then subtract the net from the gross to get the VAT. For example, an AED 105 inclusive price contains AED 5 of VAT on an AED 100 net.

How do I add 5% VAT to a price?

Multiply the exclusive (net) amount by 1.05. The VAT equals the net multiplied by 0.05. For example, AED 100 net becomes AED 105 gross with AED 5 VAT.

What is the difference between zero-rated and exempt supplies?

Zero-rated supplies (such as exports and certain healthcare and education) are taxed at 0% but let the supplier recover input VAT. Exempt supplies (such as some financial services and bare land) carry no VAT and do not allow input VAT recovery.

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UAE VAT Inclusive/Exclusive Calculator (5%)

The United Arab Emirates applies a single flat 5% VAT rate, introduced on 1 January 2018. Because the rate is uniform, the only thing that changes day to day is whether you need to add VAT to a net price or pull it out of a VAT-inclusive total. This calculator does both and shows the full breakdown.

How it works

The 5% rate gives a multiplier of 1.05:

Add VAT: gross = net × 1.05, and the VAT is net × 0.05.
Extract VAT: net = gross ÷ 1.05, and the VAT is gross − net.

A useful shortcut: in any 5% VAT-inclusive price the VAT is exactly 1/21 of the gross (0.05 ÷ 1.05), or roughly 4.762%.

Example

Extract VAT from an AED 105 inclusive invoice:

Net = 105 ÷ 1.05 = AED 100.00
VAT = AED 5.00

Add VAT to an AED 200 net price: 200 × 1.05 = AED 210.00, with AED 10.00 VAT.

Notes

This tool covers the standard 5% rate. Zero-rated supplies (exports, qualifying healthcare and education, certain transport) carry 0% VAT, and exempt supplies (some financial services, bare land, local passenger transport) carry none — in both cases set the calculation aside and follow the specific rule for that supply.