UAE VAT formulas
- Adding VAT: total = net × 1.05; VAT = net × 0.05
- Removing VAT: net = total ÷ 1.05; VAT = total × 5 ÷ 105
Examples
| Net (AED) | VAT 5% | Total |
|---|---|---|
| 100 | 5.00 | 105.00 |
| 500 | 25.00 | 525.00 |
| 1,000 | 50.00 | 1,050.00 |
| 5,000 | 250.00 | 5,250.00 |
| 10,000 | 500.00 | 10,500.00 |
| 50,000 | 2,500.00 | 52,500.00 |
Invoice tips
A full tax invoice in the UAE shows the supplier’s TRN, the words “Tax Invoice”, the date, a description of goods or services, the amount before tax, the VAT rate and VAT amount in AED, and the total. Simplified invoices are allowed for supplies under AED 10,000 to non-registered customers.
Trading with Saudi Arabia? Use the Saudi VAT calculator (15%).
General information only; the Federal Tax Authority’s guidance is the official source.
Frequently asked questions
What is the VAT rate in the UAE?
The standard VAT rate is 5%, in force since 1 January 2018. Some supplies are zero-rated (such as exports, international transport, certain education and healthcare) or exempt (such as residential rent and resale of residential property, local passenger transport and some financial services).
How do I remove VAT from a total?
Divide the VAT-inclusive amount by 1.05 to get the net price. The VAT is the difference, or the total × 5/105.
When must a business register for VAT?
Registration is mandatory when taxable supplies and imports exceed AED 375,000 in the past 12 months or are expected to in the next 30 days. Voluntary registration is possible above AED 187,500.
Do prices in the UAE include VAT?
Yes. Prices shown to consumers must include VAT, so the shelf price is what you pay.
Last reviewed: October 2026