UAE VAT Calculator

How the calculation works

The UAE standard VAT rate is 5%. Which way you calculate depends on whether the number in front of you already contains VAT.

When you have to charge VAT

You only charge VAT if you are registered for it with the Federal Tax Authority. UAE registration thresholds are based on taxable turnover over the previous 12 months, or expected turnover over the next 30 days.

• Mandatory registration: taxable turnover above AED 375,000
• Voluntary registration: taxable turnover or expenses above AED 187,500

Below the voluntary threshold you cannot charge VAT, and you cannot reclaim VAT on what you buy either.

Not everything is standard-rated

A 5% calculation only applies to standard-rated supplies. Two other categories exist and they are not the same thing, which matters when you file.

• Zero-rated (0%): exports outside the GCC, international transport, certain healthcare and education, and newly constructed residential property. You charge 0% but the supply is still taxable, so you can reclaim the input VAT you paid.
• Exempt: most local passenger transport, bare land, and certain financial services. No VAT is charged and input VAT on related costs generally cannot be reclaimed.

The distinction is the reclaim. Treating a zero-rated supply as exempt quietly costs you the input tax you were entitled to recover.

Rounding on tax invoices

VAT is calculated to the fils and normally shown to two decimal places. Where rounding is applied it should be to the nearest fils, and a tax invoice must show the VAT amount in AED even when the invoice itself is issued in another currency.

This calculator is provided for general information and does not constitute tax advice. Rates and thresholds are those published by the UAE Federal Tax Authority as at August 2026. Confirm your own position with a qualified tax adviser or the FTA before filing.