VAT Calculator UAE

VAT was introduced in the UAE on 1 January 2018 at a flat 5%, alongside Saudi Arabia. It's administered by the Federal Tax Authority (FTA). Compared to most countries, 5% is one of the lowest VAT rates in the world. The other GCC countries followed in stages: Bahrain (5% in 2019, raised to 10% in 2022), Oman (5% in 2021), Saudi Arabia (raised from 5% to 15% in 2020).

Mandatory registration is required if your annual taxable supplies + imports exceed AED 375,000. Voluntary registration is permitted from AED 187,500 — useful for B2B suppliers who want to reclaim input VAT or appear more established. Below AED 187,500, you cannot register. Registration is handled online through the FTA's EmaraTax portal.

Zero-rated (0% VAT charged, input VAT recoverable): exports outside GCC, international transportation, supply of certain investment-grade precious metals, education provided by qualifying institutions, healthcare services. Exempt (no VAT, no input credit): residential property leases and resales, bare land sales, local passenger transport, life insurance, certain financial services. The distinction matters for your business's cash flow.

Use the 'Extract VAT' mode of this calculator. For 5% VAT: gross / 1.05 = net. So an AED 105 inclusive price = AED 100 net + AED 5 VAT. A quick mental shortcut: divide gross by 21 to get the VAT, then multiply that by 20 to get the net. So AED 525 / 21 = AED 25 VAT; AED 25 × 20 = AED 500 net.

Default is quarterly returns (filing + payment due 28 days after the end of each tax period). The FTA may assign monthly returns to large businesses or those with poor compliance history. Returns are filed via EmaraTax. Late returns incur AED 1,000 first offence + AED 2,000 second offence + interest. Always file even if you owe zero VAT.

Yes — VAT-registered businesses can claim back input VAT on business-related purchases, including imports. To claim, you need a valid tax invoice from a registered supplier showing their TRN (Tax Registration Number). VAT on the following is generally NOT recoverable: entertainment expenses, employee gifts above AED 500/person, vehicles available for personal use, and exempt-supply-related expenses.

When you import goods or services from outside the UAE for business use, the Reverse Charge Mechanism (RCM) applies. Instead of the overseas supplier charging UAE VAT, you (the UAE buyer) account for both the output VAT and input VAT on your own return — typically netting to zero unless the expense isn't fully recoverable. Common scenarios: SaaS subscriptions (Slack, AWS, Google Workspace), consulting from non-UAE firms, imported goods.

Yes: Excise tax (100% on tobacco and energy drinks, 50% on sugary drinks); Corporate Tax (9% on business profits above AED 375,000, since June 2023); Tourism Dirham fee (AED 7-20/night at hotels); Municipality housing fee (5% of annual residential rent, collected via DEWA in Dubai); Property registration fees (4% DLD in Dubai). No personal income tax.