UAE VAT Calculator
Add or remove 5% UAE VAT from any amount. Useful for invoicing, expense claims, and tourist refund planning.
Transaction
VAT Calculation
Total with VAT
AED 1,050
5% VAT
Pre-VAT Amount
AED 1,000
VAT (5%)
AED 50
Total with VAT
AED 1,050
UAE VAT at 5%
The UAE introduced Value Added Tax on 1 January 2018 at a standard 5% rate — still among the lowest VAT rates globally. Administered by the Federal Tax Authority (FTA). Applies to most goods and services across all seven emirates.
Exempt vs zero-rated
Zero-rated (0% VAT, but ITC claimable): exports outside GCC, international transport, first supply of residential property (within 3 years), investment-grade precious metals, crude oil & natural gas. Exempt (no VAT, no ITC): local passenger transport, residential property resale, bare land, life insurance and reinsurance.
Registration thresholds
Mandatory registration once taxable supplies exceed AED 375,000 in a 12-month period. Voluntary registration available from AED 187,500. Non-residents making taxable supplies in UAE must register regardless of value.
Tourist refund — effective ~4.25%
Tourists can reclaim 85% of VAT at Dubai and Abu Dhabi airports on minimum AED 250 purchases from registered retailers. 15% admin fee retained. Present original invoice + unused goods within 90 days of purchase.
Frequently Asked Questions
Everything you need to know, in one place.
What is the UAE VAT rate?
5% standard rate since 1 January 2018 — among the lowest in the world. Exempt supplies: residential property leases, local passenger transport, life insurance, bare land. Zero-rated: exports, international transport, newly-built residential (first supply), precious metals investment-grade.
When must a business register for VAT?
Mandatory registration: taxable supplies over AED 375,000 in 12 months. Voluntary: AED 187,500. Non-residents making taxable supplies in UAE must register regardless of turnover.
How does the tourist refund work?
Tourists can claim VAT refund at Dubai/Abu Dhabi airports on purchases above AED 250 from registered stores. Present goods unused within 90 days of purchase. 15% administrative fee deducted — refund is effectively ~4.25%.
Does VAT apply to online services?
Yes — electronic services from non-resident providers (Netflix, AWS, App Store purchases) attract 5% VAT. B2C providers register under the simplified regime; B2B customers self-account via reverse charge.
How do I remove 5% VAT from a total?
Pre-VAT = total ÷ 1.05. An AED 105 invoice splits as AED 100 + AED 5 VAT. An AED 500 bill VAT-inclusive = AED 476.19 pre-VAT + AED 23.81 VAT. Never subtract 5% directly — AED 105 minus 5% is AED 99.75, which is wrong.
Can businesses recover input VAT?
Yes — registered businesses can recover VAT paid on purchases used to make taxable supplies (input tax credit), filed quarterly or monthly via the FTA EmaraTax portal. Cannot recover VAT on entertainment, personal use items, passenger vehicles used privately, or supplies used for exempt activities (partial exemption rules apply).
Related Calculators
View all →Found this helpful?
Share it with a friend — they'll probably find it useful too.