Our UAE VAT Calculator Online Free is designed to help businesses and individuals quickly and accurately calculate VAT in the UAE. Whether you need to add VAT to a price or subtract VAT from a total, this tool ensures precise results based on UAE’s 5% VAT rate.
With a user-friendly interface, real-time calculations, and a clear breakdown of net amount, VAT amount, and total price, our VAT calculator simplifies tax calculations for everyone. Use our online UAE VAT calculator to ensure compliance with UAE tax laws and avoid miscalculations in your transactions.
Our UAE VAT Calculator Online Free is designed to help businesses and individuals quickly and accurately calculate VAT in the UAE. Whether you need to add VAT or subtract VAT, this tool ensures precision based on the UAE’s 5% VAT rate. Follow the steps below to calculate VAT easily.
In the input box, enter the amount you want to calculate VAT for.
You can input the price with or without VAT, depending on your needs.
Our UAE VAT Calculator Online Free offers two calculation modes:
The default VAT rate is 5%, as per UAE tax laws.
If needed, you can enter a custom VAT percentage for other tax calculations.
Once you have entered the details, click the ‘Calculate’ button.
The VAT amount, total price, and net price will be displayed instantly.
The TimeChart UAE VAT Calculator provides a detailed breakdown, including:
This online UAE VAT calculator ensures that businesses and individuals comply with UAE VAT regulations while making accurate tax calculations.
While we have taken every effort to ensure accuracy, human errors may occur, and the results generated by this calculator should not be solely relied upon for tax filing or legal compliance.
TimeChart does not take any responsibility for any damage, threat, or loss that may arise from using this calculator or the content provided. Furthermore, TimeChart will not be held responsible for any legal actions resulting from reliance on this tool.
For accurate tax information and compliance, users should only trust information from government authorities, official sources, and tax consultants. It is strongly recommended to seek professional advice from a certified tax expert or consult the Federal Tax Authority (FTA) and other official UAE government sources for legal and tax-related matters.
This calculator is intended only for general informational purposes and should not be used for legal tax filing. Before making any tax-related decisions, please consult a licensed tax professional to ensure compliance with UAE VAT laws.
The United Arab Emirates (UAE) implemented Value Added Tax (VAT) on January 1, 2018, as a way to diversify its revenue sources. This indirect tax is applied to the purchase and consumption of goods and services. While most products and services in the UAE are subject to a 5% VAT, certain items fall under zero-rated or exempt categories.
VAT in the UAE is categorized into three main types:
Category | VAT Rate | Examples | Notes |
---|---|---|---|
Standard Rate | 5% | Electronics, clothing, restaurants, hotels | Applied to most goods and services |
Zero-Rated | 0% | Healthcare, education, exports, medicines | Businesses can claim VAT refunds |
Exempt Items | No VAT | Financial services, residential rent, local transport | No VAT is applied |
This applies to most goods and services purchased in the UAE, including electronics, clothing, food services, and hospitality.
Certain sectors, such as healthcare, education, international transportation, and exports, are subject to 0% VAT.
Although no VAT is charged, businesses can claim VAT refunds on related expenses.
Financial services, residential properties, and local passenger transport are exempt from VAT.
Businesses providing exempt services cannot reclaim VAT on related expenses.
VAT registration in the UAE is mandatory for businesses meeting specific revenue criteria.
Registration Type | Annual Taxable Sales Threshold | Requirement |
---|---|---|
Mandatory Registration | Above AED 375,000 | Businesses must register for VAT |
Voluntary Registration | Between AED 187,500 – 375,000 | Small businesses may choose to register |
Companies that exceed the mandatory threshold must register with the Federal Tax Authority (FTA) to comply with UAE VAT regulations.
Businesses below the threshold can opt for voluntary VAT registration if they expect future growth or want to reclaim input VAT.
Strict penalties are imposed by the Federal Tax Authority (FTA) for late VAT return submissions and delayed VAT payments.
Violation | Penalty | Details |
---|---|---|
Late VAT Filing | AED 1,000 (first time) | Failure to submit VAT returns on time |
AED 2,000 (repeated within 24 months) | Higher penalties for repeated offenses | |
Late VAT Payment | 2% immediately | Applied to the unpaid tax amount |
4% after 7 days | Additional penalty after one week | |
1% daily (up to 300%) | Daily penalty for continuous non-payment |
Businesses must ensure timely VAT filing and payment to avoid accumulating penalties.
The FTA offers an online VAT portal for easy submission and tracking of VAT returns.
The UAE government has introduced simplified VAT refund processes for tourists, businesses, and diplomats to enhance compliance and transparency.
The FTA now requires e-invoicing and digital record-keeping to streamline VAT compliance and reduce errors in reporting.
Online businesses and digital services are now subject to specific VAT guidelines, ensuring fair taxation on cross-border transactions.
Companies attempting to evade VAT or falsify tax records may face higher penalties and legal action from authorities.
If you own a business in the UAE, understanding how to claim VAT is essential for managing your finances and ensuring compliance with the Federal Tax Authority (FTA). VAT-registered businesses can claim input VAT, which means they can get a refund for the VAT paid on purchases related to their business operations. However, to claim VAT successfully, businesses must follow a structured process that includes VAT registration, maintaining VAT invoices, filing VAT returns, and submitting a refund request.
To claim VAT in the UAE, businesses must first be registered under the VAT system. The registration process is managed by the Federal Tax Authority (FTA) and is done online. Here’s how you can register:
Businesses must submit important documents to verify their registration, including:
After VAT registration, businesses must issue VAT-compliant invoices for every taxable transaction. VAT invoices must include specific details such as:
Properly issued invoices are essential for claiming input VAT and avoiding penalties during audits.
VAT-registered businesses must pay VAT and submit VAT returns to the FTA every quarter. Here’s how:
If your business paid more VAT on purchases than it collected on sales, you are eligible to claim a VAT refund. Follow these steps to request a refund:
To better understand how our UAE VAT Calculator Online Free works, let's look at a few examples of VAT calculations based on the 5% VAT rate in the UAE.
Scenario: You have a product priced at AED 1,000 (excluding VAT), and you need to calculate the total price including VAT.
💡 Formula: Price + (Price × VAT Rate) = Total Price
1,000 + (1,000 × 5/100) = 1,050 AED
Scenario: You receive a bill of AED 1,050 (including VAT), and you want to find the original price before VAT was applied.
💡 Formula: Total Price ÷ (1 + VAT Rate) = Net Price
1,050 ÷ 1.05 = 1,000 AED
If you need to apply a different VAT percentage (e.g., 7%), you can enter the custom VAT rate in our UAE VAT Calculator to get an accurate breakdown.
This online UAE VAT calculator ensures fast and error-free VAT calculations for businesses and individuals across the UAE.
Value Added Tax (VAT) in the UAE is an indirect tax applied to the supply of most goods and services. The UAE introduced VAT on January 1, 2018, at a standard rate of 5%. VAT is collected at each stage of the supply chain, and businesses act as intermediaries to collect and remit it to the government.
VAT was introduced to reduce reliance on oil revenue and create a sustainable economic model. Businesses must comply with VAT regulations set by the Federal Tax Authority (FTA) to ensure proper tax collection and reporting.
VAT applies to businesses and consumers alike. However, businesses are responsible for collecting VAT and remitting it to the FTA.
Businesses are required to register for VAT if they meet the following criteria:
📌 Example: If a business sells a product worth AED 2,000, the VAT charged would be:
2,000 × 5% = AED 100
Total price for the customer = AED 2,100
VAT is included in the final price of most goods and services.
Consumers pay VAT when they purchase products or services, but they do not need to file VAT returns.
While most goods and services are subject to 5% VAT, some are zero-rated (0%), and others are VAT-exempt.
These sectors are subject to VAT, but the applicable rate is 0%, meaning businesses do not charge VAT on sales but can still recover VAT on expenses.
📌 Example: If a school charges AED 10,000 per term, the VAT would be:
10,000 × 0% = AED 0 (No VAT charged)
Some industries are completely exempt from VAT, meaning businesses do not charge VAT and cannot recover VAT on related expenses.
📌 Example: A passenger taking a taxi ride for AED 50 will not be charged VAT.
VAT is calculated at 5% of the taxable amount. Businesses can use two methods for VAT calculations:
If a product or service price does not include VAT, you need to add VAT to get the final price.
💡 Formula:
📌 Total Price = Net Price + (Net Price × VAT Rate)
Example: If a product costs AED 1,000 (excluding VAT):
📌 1,000 + (1,000 × 5/100) = 1,050 AED
📌 The VAT amount is AED 50, and the final price is AED 1,050.
If a price already includes VAT, you can extract the VAT amount and determine the base price.
💡 Formula:
📌 Net Price = Total Price ÷ (1 + VAT Rate)
Example: If a bill total is AED 1,050 (including VAT):
📌 1,050 ÷ 1.05 = 1,000 AED
📌 The VAT amount is AED 50, and the net price is AED 1,000.
Businesses registered for VAT must file VAT returns every quarter through the FTA online portal. The return includes:
📌 Deadline: VAT returns must be submitted within 28 days after the tax period ends. Late filings may result in penalties.
Time Chart - Decimal to Hours and Minutes Calculator
Time Chart - Online Mileage & Fuel Cost calculator
Time Chart Free Work Hour Calculator & Time Card
Time Chart - Convert Military Time
Time Chart - Online Free Timer Clock
Time Chart - Online Pomodoro Timer
Also check out - Time Chart calculator - Calculate Decimal Hours To Hours & Minutes
Read more about types of Leaves in UAE Labour Law: Annual Leave in UAE
Public Holidays 2025, Weekends, and Leave Types in the UAE: A Comprehensive Guide
Medical & Sick Leave in UAE Labour Law: Guidelines & Requirements 2025
Understanding Unpaid Leave Under UAE Labour Law 2025: A Comprehensive Guide
Value Added Tax (VAT) in the UAE is a legal requirement for businesses that meet specific criteria set by the Federal Tax Authority (FTA). Businesses and individuals engaged in commercial activities must determine whether they need to register for VAT based on their annual taxable turnover.
A business must register for UAE VAT if its annual taxable turnover exceeds AED 375,000. This threshold applies to all taxable supplies, including goods and services subject to standard 5% VAT and zero-rated supplies.
Failure to register for VAT when the business meets the mandatory threshold can result in penalties and fines from the FTA.
A business can choose to register for VAT voluntarily if its annual taxable turnover is between AED 187,500 and AED 375,000. This allows businesses to reclaim VAT on purchases, even if their revenue has not yet reached the mandatory threshold.
Voluntary registration benefits businesses by allowing input VAT recovery and making them more credible to VAT-registered clients and suppliers.
Some businesses and industries are exempt from VAT registration and are not required to charge or collect VAT. However, these businesses cannot claim VAT refunds on their expenses.
Even if a business is VAT-exempt, it may still need to track VAT expenses to ensure compliance with UAE tax regulations.
Businesses that meet the registration criteria must apply for VAT registration through the Federal Tax Authority (FTA) portal. The process involves the following steps:
To register for UAE VAT, businesses must provide:
Businesses must visit the FTA website and create an account. They must fill out the VAT registration form, providing details about their business activities, revenue, and expected taxable supplies.
Once the application is reviewed and approved, the FTA issues a Tax Registration Number (TRN). The TRN is a unique identifier that businesses must include on all invoices and official documents.
After receiving the TRN, businesses must:
A business must apply for VAT deregistration if:
Deregistration is done through the FTA online portal, and businesses must settle any outstanding VAT liabilities before approval.
Accurate VAT calculation in UAE is essential for businesses to comply with UAE tax laws and avoid penalties from the Federal Tax Authority (FTA). Whether a business is required to collect 5% VAT or needs to determine the VAT-inclusive and VAT-exclusive amounts, using an online UAE VAT calculator simplifies the process.
Businesses operating in the UAE must follow the VAT regulations set by the FTA. Miscalculations in VAT can lead to financial penalties and legal issues. By calculating VAT accurately, businesses:
For VAT-registered businesses, understanding how much VAT needs to be paid or reclaimed is essential. Calculating VAT properly allows businesses to:
Proper VAT calculation in UAE helps businesses manage their finances effectively. It allows for:
Businesses must file VAT returns with the FTA every quarter. Incorrect VAT calculations can result in:
Using a UAE VAT calculator ensures accuracy and eliminates errors in VAT return filings.
For businesses dealing with clients, suppliers, and partners, correct VAT calculation ensures transparent invoicing. A VAT-compliant invoice must include:
Clear VAT calculations help in building trust with customers and ensuring compliance with tax laws.
Manually calculating VAT for every transaction can be time-consuming and prone to errors. A UAE VAT calculator automates the process by:
An online VAT calculator eliminates errors by ensuring accurate VAT calculations. It:
For FTA VAT return filing, businesses must submit precise VAT calculations. A UAE VAT calculator provides:
Whether you are:
A UAE VAT calculator helps in all cases by providing instant and precise VAT values.
An online VAT calculator is accessible from any device. It is:
TimeChart offers a powerful and easy-to-use platform designed to streamline employee time tracking, attendance management, and task scheduling. With real-time tracking and advanced features, it ensures precision in payroll and simplifies workforce management.
Whether you're using Android, iOS, or desktop devices, TimeChart is compatible and user-friendly. Experience seamless time and attendance management on any platform.
Ready to enhance your workplace efficiency with TimeChart? Visit our website at TimeChart.org or get in touch to learn more about how we can transform your business operations.
Empower your team with TimeChart—the smart solution for time tracking and workforce management!
Contact us on WhatsApp:
Click here to chat with us.
VAT (Value Added Tax) is a 5% consumption tax imposed on goods and services in the UAE. Businesses must collect and remit VAT to the Federal Tax Authority (FTA).
A UAE VAT calculator helps users calculate VAT amounts by adding 5% VAT to an amount or extracting VAT from a VAT-inclusive price, ensuring accurate tax calculations.
Yes, the UAE VAT calculator online is free to use. It provides instant VAT calculations for businesses and individuals in compliance with UAE VAT laws.
The standard VAT rate in the UAE is 5%, but the calculator allows users to enter custom VAT rates for zero-rated or exempt transactions.
To add VAT, multiply the amount by 1.05.
To remove VAT, divide the total amount by 1.05 to extract the VAT component.
No, some items are zero-rated (0%) (e.g., healthcare, education, and exports) or VAT-exempt (e.g., financial services, residential rentals). The UAE VAT calculator supports custom rates.
Yes, if their taxable supplies exceed AED 375,000 annually, they must register for VAT and charge 5% on invoices. Those earning above AED 187,500 can register voluntarily.
A UAE VAT calculator ensures accurate tax compliance, prevents miscalculations, simplifies VAT return filing, and helps in invoicing and financial planning.
Yes, the VAT calculator is mobile-friendly, allowing users to calculate VAT amounts instantly from smartphones, tablets, or desktops.
For the latest VAT rules and updates, visit the Federal Tax Authority (FTA) website at www.tax.gov.ae.
Time Chart - Decimal to Hours and Minutes Calculator
Time Chart - Online Mileage & Fuel Cost calculator
Time Chart Free Work Hour Calculator & Time Card
Time Chart - Convert Military Time