UAE VAT Calculator: FTA 5% VAT Made Simple

What the UAE VAT rate actually is

Value Added Tax (VAT) in the United Arab Emirates is a consumption tax charged on most goods and services at a standard rate of 5%. It is administered by the Federal Tax Authority (FTA), and businesses that are registered for VAT collect it on behalf of the government.

Not everything is taxed at 5%. Some supplies are zero-rated (charged at 0%, such as certain exports and specific healthcare and education services), and some are exempt (such as certain financial services and bare land). For a typical shop, cafe, or online store selling standard goods, 5% is the number you will use most of the time.

This is general information only. VAT rules, categories, and thresholds change, so confirm current rules with the FTA or a qualified local tax professional before relying on them for your own filings.

How to add 5% VAT to a price

If you have a net price (the amount before VAT) and want the VAT-inclusive price your customer pays, you add 5% on top.

1. 1

   Start with the net price

   Take your price before VAT. Example: a product priced at AED 200 before tax.

2. 2

   Calculate the VAT amount

   Multiply the net price by 0.05. AED 200 x 0.05 = AED 10 VAT.

3. 3

   Add it to the net

   Add the VAT to the net price. AED 200 + AED 10 = AED 210 gross. A quick shortcut is net x 1.05 = gross.

How to remove VAT from a VAT-inclusive price

Sometimes you have a price that already includes VAT (for example a shelf price or a receipt total) and you need to work backwards to find the net amount and the VAT portion. This is often called a reverse VAT calculation.

1. 1

   Start with the gross price

   Take the VAT-inclusive total. Example: AED 210 including VAT.

2. 2

   Divide by 1.05

   AED 210 / 1.05 = AED 200. That is your net price before VAT.

3. 3

   Find the VAT amount

   Subtract the net from the gross. AED 210 - AED 200 = AED 10 VAT. A common mistake is to take 5% of the gross, which overstates the VAT. Always divide by 1.05.

Worked examples you can copy

• Net AED 1,000 to gross: 1,000 x 1.05 = AED 1,050 (VAT is AED 50).
• Gross AED 1,050 to net: 1,050 / 1.05 = AED 1,000 (VAT is AED 50).
• Net AED 79.90 to gross: 79.90 x 1.05 = AED 83.90 (VAT is AED 4.00 after rounding).
• Gross AED 500 to net: 500 / 1.05 = AED 476.19 (VAT is AED 23.81).
• To find just the VAT inside a gross price quickly: gross / 21 gives the VAT portion (since 5% inclusive is 1/21 of the total).

Do you need to register for VAT in the UAE?

Registration thresholds are based on the value of your taxable supplies and imports over a rolling period.

• Mandatory registration: once your taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to exceed it in the next 30 days.
• Voluntary registration: allowed once taxable supplies, imports, or taxable expenses exceed AED 187,500, which can help startups recover input VAT early.
• Once registered you receive a Tax Registration Number (TRN) that must appear on your tax invoices.
• Thresholds and eligibility rules can change, so confirm your position with the FTA or a qualified local tax professional.

Filing your VAT201 return with the FTA

Registered businesses report VAT to the FTA through the VAT201 return, filed via the EmaraTax portal. Most businesses file quarterly, though the FTA assigns your specific tax period.

The core of the return is simple: you add up the VAT you charged customers (output VAT) and subtract the VAT you paid on eligible business purchases (input VAT). If output VAT is higher, you pay the difference; if input VAT is higher, you may be due a refund or a carried-forward credit.

Accuracy depends on clean records. Every sale needs a compliant tax invoice, every claimable expense needs a valid VAT receipt, and your figures need to reconcile with your bank. Doing this by hand across spreadsheets is where errors and penalties creep in.

Let your software do the VAT maths for you

A calculator is fine for a one-off check, but running a business means calculating VAT on every invoice, receipt, and refund, then rolling it all up at return time. Tallium AI handles this automatically. It is one all-in-one app covering accounting, invoicing, POS, inventory, and e-commerce, so VAT is applied correctly at the point of sale and on every invoice, and your VAT-inclusive and VAT-exclusive figures always agree.

The AI does the tedious parts: it scans and categorises receipts, tracks input and output VAT as you go, and gives you a return-ready summary that maps to the VAT201 boxes so filing with the FTA is quick. You get real-time reports and AI insights, plus the wider Tallium AI suite with Marketing and CRM, all under one account.

Pricing is one simple flat rate in US dollars, billed monthly with no free trial and no per-seat fees, so you get unlimited users on every plan. A shop or store plan is $79/month, an online store $159/month, a warehouse $99/month, and a factory $269/month. See the full breakdown on our pricing page.