UAE VAT Calculator

To add VAT to a price: multiply it by 0.05 to get the VAT amount, then add that to the original price. To remove VAT from a price that already includes it: divide by 1.05 to get the pre-VAT price, then subtract that from the total to get the VAT portion. The calculator above does both directions — use the toggle to switch.

Functionally similar to the end customer, but structurally different. VAT is collected and remitted at each stage of the supply chain, with registered businesses able to reclaim VAT they paid on their own costs (input VAT) against VAT they charge (output VAT). Sales tax, used in the US, is typically only collected once, at the final point of sale to the consumer.

Registration is mandatory once your taxable turnover (standard-rated plus zero-rated supplies) exceeds AED 375,000 in any rolling 12-month period — not just your financial year. You can register voluntarily once you pass AED 187,500. Use the threshold checker above with your own numbers.

A fixed AED 10,000 penalty applies for missing the registration deadline (30 days after exceeding the mandatory threshold), plus 14% annual interest on any VAT that should have been charged and collected in the meantime. Separately, late VAT return filing carries its own penalty — AED 1,000 for a first offense, AED 2,000 for repeated late filing within 24 months, under Cabinet Decision No. 129 of 2025.

Both mean no VAT is charged to the customer, but the accounting treatment differs. Zero-rated supplies (like exports and healthcare) still count as taxable supplies — the business can reclaim VAT on its own related costs. Exempt supplies (like residential rent) sit outside the VAT system entirely, so VAT paid on related costs generally can't be reclaimed.

If you're VAT-registered and the expense relates to taxable (standard-rated or zero-rated) business activity, generally yes, subject to normal FTA input-VAT rules and standard exclusions (e.g. most entertainment expenses, certain motor vehicles). If your supplies are VAT-exempt, input VAT on related costs typically isn't recoverable.

No — it's a quick estimation tool for everyday VAT math and a plain-language read on the registration thresholds, not a substitute for FTA guidance or a registered tax agent. For actual filing, registration, or a specific transaction's VAT treatment, confirm with the FTA (EmaraTax) or a qualified tax advisor.