VAT calculator for the United Arab Emirates
Add or remove VAT for the United Arab Emirates in AED — preset with the current rates (5%).
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VAT rates in the United Arab Emirates (2026)
The standard rate of 5% applies to most goods and services. There is no reduced rate; certain supplies may be exempt or zero-rated. Locally, the tax is called ضريبة القيمة المضافة (VAT). Registration / small-business threshold: AED 375,000 annual taxable supplies.
Good to know
- VAT registration is mandatory once taxable supplies exceed AED 375,000 a year (voluntary from AED 187,500).
- A simplified tax invoice may be issued for supplies below AED 10,000 or to non-registered recipients.
How it’s calculated
VAT is charged as a percentage of the net (pre-tax) price. To add it, multiply the net amount by the rate; to find the net amount inside a tax-inclusive price, divide the gross amount by 1 plus the rate.
A common mistake is to remove VAT by subtracting the rate from the gross price (e.g. 119 − 19% = 96.39). That is wrong — the correct net amount is 119 ÷ 1.19 = 100.
Gross = Net × (1 + rate ÷ 100)VAT = Net × rate ÷ 100Net = Gross ÷ (1 + rate ÷ 100)
Frequently asked questions
How do I add VAT to a price in the United Arab Emirates?
Multiply the net price by 1.05. For example, AED 100.00 plus 5% VAT is AED 100.00 × 1.05 = AED 105.00.
How do I remove VAT from a gross price in the United Arab Emirates?
Divide the gross price by 1.05: AED 105.00 ÷ 1.05 = AED 100.00. The VAT included is AED 5.00.
What VAT rates apply in the United Arab Emirates?
The United Arab Emirates uses a standard VAT rate of 5%.
Are these VAT rates for the United Arab Emirates up to date?
The rates were last reviewed in October 2026. Tax rates can change, so confirm with the tax authority before relying on them for filings.
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Results are estimates for general information only and are not tax, legal or financial advice.