How VAT works in the UAE

The UAE applies a standard Value Added Tax (VAT) rate of 5% on most goods and services. Businesses registered for VAT charge it on sales (output tax) and reclaim it on purchases (input tax), paying the difference to the Federal Tax Authority.

Add vs remove VAT

  • Add VAT — when your figure is the net (VAT-exclusive) price: VAT = amount × 5%, and gross = amount × 1.05.
  • Remove VAT — when your figure already includes VAT (gross): net = amount ÷ 1.05, and the difference is the VAT portion.

Please note: This tool is for quick estimates. For registration, filing and exemptions, consult the UAE Federal Tax Authority (tax.gov.ae) or a qualified tax adviser.