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UAE VAT Calculator

Add or remove 5% UAE VAT for standard-rated amounts.

Preparing the calculator…

How it works

VAT in the UAE is charged at a standard rate of 5% on most goods and services. This calculator does two jobs: it adds 5% to a price that excludes VAT, or it works out how much VAT is already inside a price that includes it.

To add VAT, it multiplies the amount by 5% and adds the result: VAT = amount × 0.05, and the total is the amount plus the VAT.

To remove VAT, it takes the VAT share of the VAT-inclusive price, which is 5 parts in 105 (one twenty-first): VAT = price × 5 ÷ 105, and the amount before VAT is the price minus the VAT. The two parts always add back to the price you entered.

The VAT is rounded to the nearest fils (0.01 AED): half a fils or more rounds up, less than half rounds down. Every other step is exact, so there are no hidden rounding errors.

Worked examples

Adding VAT to 1,234.56 AED

  1. VAT = 1,234.56 × 5% = 61.728 AED.
  2. 61.728 is 61 dirhams and 72.8 fils. The extra 0.8 fils is more than half a fils, so the VAT rounds up to 61.73 AED.
  3. Amount including VAT = 1,234.56 + 61.73 = 1,296.29 AED.

Removing VAT from a price of 100 AED

  1. The price of 100.00 AED already includes VAT.
  2. VAT = 100.00 × 5 ÷ 105 = 4.7619… AED, which rounds to 4.76 AED.
  3. Amount before VAT = 100.00 − 4.76 = 95.24 AED.

Half a fils rounds up

  1. VAT on 0.10 AED = 0.10 × 5% = 0.005 AED, exactly half a fils.
  2. Half a fils rounds up, so the VAT is 0.01 AED and the amount including VAT is 0.11 AED.

Frequently asked questions

What is the VAT rate in the UAE?

The standard rate is 5%, set by Article 3 of Federal Decree-Law No. 8 of 2017 on Value Added Tax. The amendments in force from 1 January 2026 (Federal Decree-Law No. 16 of 2025) did not change the rate.

How do I work out the VAT inside a price that already includes it?

Divide the price by 21, or multiply it by 5 and divide by 105. A price of 105 AED including VAT contains 5 AED of VAT and 100 AED before VAT. Taking 5% of the VAT-inclusive price (5.25 AED here) overstates the VAT.

How is VAT rounded?

When the VAT works out to a fraction of a fils, the Federal Tax Authority permits rounding to the nearest fils: half a fils or more rounds up and less than half rounds down (Executive Regulation, Article 61). On a full tax invoice, rounding is applied line by line (FTA Public Clarification VATP006). This calculator treats the amount you enter as one line.

Do advertised prices have to include VAT?

Yes. For a taxable supply, the advertised price must include VAT (Article 38 of the VAT Decree-Law), except in cases set out in the Executive Regulation.

Can I use this for zero-rated or exempt supplies?

No. It applies the 5% standard rate only. Zero-rated supplies, such as exports and certain education and healthcare services listed in Article 45, are taxed at 0%. Exempt supplies, such as certain financial services, residential buildings that are not zero-rated, bare land and local passenger transport (Article 46), carry no VAT. Check the FTA's guidance for your supply.

Is the result a tax invoice or tax advice?

No. The result is an estimate for information only. It is not a tax invoice, does not replace your accounting records and is not advice from the Federal Tax Authority.

Sources

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