How to add or remove VAT in United Arab Emirates
- The United Arab Emirates standard rate of 5% is already selected.
- Choose Add tax and enter a price excluding VAT to get the VAT and the gross price, or Remove tax and enter a price including VAT to split it into net and VAT.
- For goods at a reduced rate, type that rate in the rate box. Paste a list of prices, one per line, to convert them all at once.
VAT rates in the United Arab Emirates
| Rate | Applies to (examples) |
|---|---|
| 5% | Standard rate: most goods and services |
| 0% | exports, international transport, some healthcare and education, first supply of residential buildings |
In United Arab Emirates the tax is called VAT. To add 5%, multiply the net price by 1.05: AED 100.00 becomes AED 105.00. To remove it, divide the gross price by 1.05: AED 100.00 including VAT is AED 95.24 net plus AED 4.76 VAT. A common mistake is to take 5% off the gross price, which removes too much; the VAT share of a gross price is 1/21, or 4.76%.
UAE VAT has been 5% since it was introduced on 1 January 2018. Businesses with taxable supplies above AED 375,000 a year must register; prices shown to consumers must include VAT.
Standard and reduced rates checked on 20 October 2026 against the Federal Tax Authority (tax.gov.ae). Rates can change with each budget; the rate box is editable if a change takes effect.
FAQ
How do I calculate 5% VAT in the UAE?
Multiply by 1.05 to add VAT. To remove it, divide by 1.05; the VAT is 1/21 (4.76%) of the total.
How do I remove VAT from a price in United Arab Emirates?
Divide the price including VAT by 1.05. For example, AED 105.00 ÷ 1.05 = AED 100.00 net, so the VAT is AED 5.00.
Does the calculator save my rate?
Yes, the last rate and country you used are remembered in this browser. Nothing is uploaded.