GenzeeUAE VAT Calculator 5%
Enter a net or gross amount in dirhams — instantly see VAT, net price, and total. Works with invoices, pricing and expense claims.
Breakdown
How UAE VAT works
The United Arab Emirates applies a 5% Value-Added Tax (VAT) on most goods and services. VAT was introduced nationwide on 1 January 2018 as part of the GCC (Gulf Cooperation Council) harmonization framework. All seven emirates — Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah — apply the same 5% standard rate.
Who pays VAT?
VAT is a consumption tax, meaning the end consumer bears the cost. However, most businesses charge VAT on their sales and claim back VAT they've paid on purchases (input VAT), so their net tax liability is only on the profit margin. Registration is mandatory for most businesses with annual turnover above AED 375,000 (voluntary below AED 187,500).
What is and isn't covered?
The 5% rate applies to most goods and services. However, some supplies are zero-rated (charged at 0% but VAT-registered businesses can still claim input VAT):
- Exports of goods and services
- International transport and freight
- Certain financial services (banking, insurance)
Some activities are exempted from VAT entirely (no VAT charged, no input VAT recovery):
- Healthcare and medical services
- Education
- Residential real estate (some sales and rentals)
- Government services
- Some insurance and financial services
For your specific transaction, always verify with the Federal Tax Authority (FTA) at fta.gov.ae.
Worked example
On a net price of AED 1,000: VAT = 1,000 × 5% = AED 50. Invoice total = AED 1,050.
Reversing from a gross invoice of AED 1,050: Net = 1,050 ÷ 1.05 = AED 1,000. VAT = AED 50.
VAT in business
If you're VAT-registered, you charge VAT on output (sales) and reclaim VAT on inputs (purchases). Your VAT liability is the difference. Quarterly VAT returns must be filed with the FTA, and you must maintain records of all VAT-related transactions. Even if your turnover is below the threshold, you may still register voluntarily — this is often beneficial if your customers are businesses that can reclaim VAT.
Frequently asked questions
What is the UAE VAT rate?
5% — the standard rate applied nationwide since 1 January 2018. This is a flat rate on most goods and services; only specific items like healthcare and education are exempted.
When did UAE introduce VAT?
1 January 2018. The UAE implemented VAT as part of the GCC harmonization framework. All seven emirates apply the same 5% standard rate.
Does this calculator include zero-rated supplies?
No. This calculator applies the standard 5% rate. Some supplies are zero-rated (e.g. exported goods, certain financial services) or exempted (e.g. healthcare, education, residential real estate). Consult ADFCA or a tax advisor for your specific transaction.
How do I reverse VAT from a total?
Set the calculator mode to 'Gross amount' and enter the total including VAT. The calculator will show the VAT portion and the net price.
Is this calculator verified?
Yes, against ADFCA (Federal Tax Authority) guidance and independent VAT calculators. All calculations use the official 5% rate and are accurate to the dirham.
Do I need to register for VAT in the UAE?
Registration is mandatory for most businesses with turnover above AED 375,000 per annum. Some activities like education and healthcare are exempt from VAT registration requirements. Check ADFCA.gov.ae for your situation.