How to use the calculator
- Choose whether to add VAT to a price or to take VAT out of a price that already includes it.
- Enter the price in dirhams. Commas are fine, and the result updates as you type.
- Read the VAT and the other price. The breakdown shows the price without VAT, the VAT and the price with VAT, and the unrounded VAT when rounding changed it.
How it is calculated
Adding VAT: VAT = price without VAT × 5%
Price with VAT = price without VAT + VAT
Removing VAT: VAT = price with VAT × 5/105
Price without VAT = price with VAT − VAT
The fraction 5/105 comes from the price with VAT being 105% of the price without it, so the VAT is 5 parts in 105. Taking 5% off a VAT-inclusive total understates the VAT, because the 5% applies to the smaller, VAT-exclusive price.
The calculator rounds the VAT to the nearest fils, half up, and then works out the other price from the rounded VAT, so the three figures always add up.
The VAT rate and the rounding rule
Standard VAT rate
5%
UAE VAT is charged at a standard rate of 5% on taxable supplies and imports of goods and services, unless a supply is zero-rated or exempt.
- Applies to
- Supplies and imports under Federal Decree-Law No. 8 of 2017 on VAT
- Source
- Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments (unofficial translation), Article 3, Federal Tax Authority
- Checked
VAT that works out to a fraction of a fils
Nearest fils
Where the VAT chargeable on a supply works out to a fraction of a fils, the taxable person may round the amount to the nearest fils using mathematical rounding.
- Applies to
- VAT chargeable on a supply
- Source
- The Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (Cabinet Decision No. 52 of 2017 and its amendments, consolidated to Cabinet Decision No. 149 of 2026, unofficial translation), Article 61, Federal Tax Authority
- Checked
The standard rate is not the only treatment. The VAT law zero-rates some supplies and exempts others:
| Treatment | Rate |
|---|---|
| Standard-rated supplies and imports | 5% |
| Zero-rated supplies, such as exports outside the GCC and international transport | 0% |
| Exempt supplies, such as residential rent, bare land and some financial services | Exempt (no VAT, no input VAT recovery) |
Source: Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments (unofficial translation), Article 46, Federal Tax Authority. Checked .
A zero-rated supply carries no VAT, but the supplier can still recover the VAT on its costs. An exempt supply carries no VAT and the supplier cannot recover the VAT on the costs linked to it. For the full lists, see VAT rates: standard, zero-rated and exempt.
Worked example
Worked example
Adding VAT to AED 2,499 and taking it out of AED 1,000
Both prices are illustrations.
- Adding VAT: AED 2,499.00 × 5% = AED 124.95. The price with VAT is AED 2,499.00 + AED 124.95 = AED 2,623.95.
- Removing VAT: AED 1,000.00 × 5/105 = AED 47.6190, which rounds to AED 47.62.
- The price without VAT is AED 1,000.00 − AED 47.62 = AED 952.38.
A VAT-inclusive price of AED 1,000 holds AED 47.62 of VAT.
Taking 5% off AED 1,000 would give AED 50.00, which is AED 2.38 too much VAT.
Assumptions and what the calculator leaves out
- One rate. The calculator applies the standard rate. It does not decide whether a supply is zero-rated, exempt or outside the scope of VAT.
- One amount at a time. On an invoice with several lines, rounding each line can give a total a fils or two away from rounding the total once. The calculator rounds the single amount you enter.
- Imports. VAT on imported goods is charged on a value that includes customs duty and excise tax. Use the customs duty calculator for that.
- Registration. Only a business registered for VAT charges it. Whether a business has to register is covered by the VAT registration threshold checker.
Note
How VAT is shown on an invoice and when it is due to the FTA are covered in tax invoice requirements and filing a VAT return.