How UAE VAT is calculated
The UAE applies a standard VAT rate of 5% on most goods and services. To add VAT, multiply the net amount by 0.05 and add it to the net. To extract VAT from a gross (VAT-inclusive) amount, divide the gross by 1.05 to find the net โ the difference is the VAT.
- Add VAT: AED 1,000 net โ AED 50 VAT โ AED 1,050 total
- Remove VAT: AED 1,050 gross รท 1.05 โ AED 1,000 net โ AED 50 VAT
Zero-rated vs exempt supplies
Zero-rated supplies (such as exports and international transport) charge VAT at 0% but still appear on VAT returns and allow input-tax recovery. Exempt supplies (such as certain financial services and bare land) fall outside the VAT charge entirely. When in doubt about your category, confirm with the Federal Tax Authority or a registered tax agent โ this calculator is for quick estimates, not tax advice.
