How to calculate UAE VAT
The standard VAT rate in the UAE is 5%.
- To add VAT: multiply the price by 1.05.
- To remove VAT from a total: divide the total by 1.05. The VAT is the difference.
AED 1,000 + 5% VATAED 1,050.00
VAT inside AED 1,050AED 50.00
Some goods and services are zero-rated or exempt, such as certain healthcare, education and residential rent. Check with the Federal Tax Authority for a specific item.
Common questions
What is the VAT rate in the UAE?
5% for most goods and services.
How do I remove 5% VAT from a price?
Divide the VAT-inclusive total by 1.05. For example, AED 1,050 ÷ 1.05 = AED 1,000 before VAT.
Is residential rent subject to VAT?
Residential rent is generally exempt. Commercial rent is usually charged VAT at 5%.
Sources
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This calculator gives an estimate for guidance only. It is not legal or financial advice. Check important figures with the relevant authority or a qualified adviser.