UAE VAT Calculator (5%)

Add or remove the 5% UAE VAT in one click. Plus: check whether your business needs to register for VAT.

By Alex Thorp, who has set up 40+ UAE businesses · Updated May 2026

VAT Add / Remove

Net amount (AED)

VAT-inclusive total

AED 1,050

Net amount: AED 1,000

VAT (5%): AED 50

Total: AED 1,050

Do You Need to Register for VAT?

Enter your annual taxable supplies (revenue from goods and services subject to UAE VAT, including zero-rated).

Annual taxable supplies (AED)

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UAE VAT FAQ

What is the UAE VAT rate?

The UAE standard VAT rate is 5%, applied to most goods and services. Some categories are zero-rated (e.g. exports outside the GCC, healthcare, education), and some are exempt (residential property second sale, financial services without explicit fees, bare land, local passenger transport).

When must I register for UAE VAT?

VAT registration is mandatory if your taxable supplies and imports exceed AED 375,000 in the past 12 months or are expected to in the next 30 days. Voluntary registration is available from AED 187,500.

How do I remove VAT from a price?

To remove 5% VAT from a VAT-inclusive amount, divide by 1.05. For example, AED 105 inclusive of VAT = AED 100 net + AED 5 VAT (105 ÷ 1.05 = 100).

Are free zone companies exempt from VAT?

Most free zones are not exempt from VAT — only specific 'designated zones' qualify, and only for goods movements (not services). If you operate in a non-designated free zone or sell services, VAT applies as usual.

How often do I file UAE VAT returns?

Most VAT-registered businesses file quarterly. Larger businesses (annual revenue above AED 150 million) file monthly. Returns are due within 28 days of the end of each tax period via the FTA's EmaraTax portal. Penalties for late filing start at AED 1,000 for the first offence and escalate quickly with repeat lateness.

Can I claim back VAT on business expenses?

Yes — if you're VAT-registered, you can offset the VAT you've paid on business expenses (input VAT) against the VAT you've collected from customers (output VAT). You only pay the FTA the difference. Some categories are blocked from input VAT recovery: entertainment expenses, motor vehicles used for personal purposes, and goods/services unrelated to your taxable business activity.

What's the penalty for late VAT registration?

If you cross the AED 375,000 threshold and fail to register within 30 days, the fixed penalty is AED 10,000. On top of that, you may be liable for VAT on all sales made during the unregistered period, plus a 50% administrative penalty on the unpaid VAT. The FTA actively enforces this — don't skip registration thinking you'll catch up later.

Worked example: Consultant invoicing AED 50,000/month

Sara runs a consulting business with regular monthly invoices of AED 50,000 to UAE-based clients. Her annual revenue is AED 600,000 — well above the AED 375,000 mandatory VAT threshold.

She must register for VAT within 30 days of crossing the threshold
Each AED 50,000 invoice now becomes AED 52,500 (incl. 5% VAT) — passing VAT to the client
Or she can keep her rate at AED 50,000 inclusive: AED 47,619 net + AED 2,381 VAT (lower take-home)
Quarterly VAT return: ~AED 7,500 due to the FTA per quarter (less any input VAT recovered)

For B2B clients, passing VAT through is standard — they'll claim it back as input VAT, so it costs them nothing. For B2C clients (selling to consumers), VAT is a real ~5% price increase, and most businesses absorb it rather than pass it on. Sara's choice depends on her client mix.

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Disclaimer: This calculator provides estimates for informational purposes only. UAE VAT rules are subject to change. For binding tax advice, consult a UAE tax advisor or the Federal Tax Authority.