Adding VAT to a price
Multiply the price by 5% to get the VAT, then add it on.
VAT = 1,000.00 × 5% = 50.00 Total = 1,000.00 + 50.00 = 1,050.00Free tool · No sign-up
UAE VAT Calculator
Add 5% VAT to a price, or take it out of a total that already includes VAT. The answer updates as you type.
What do you want to do?
VAT rate
Price before VAT
Total including VATAED 1,050.00VAT = 1,000.00 × 5% = 50.00
Amount before VAT1,000.00
VAT at 5%50.00
Total1,050.00
How It’s Calculated
Rules: Standard VAT rate of 5% (Federal Decree-Law No. 8 of 2017) · Last checked 2 Nov 2026
Reverse VAT: taking VAT out of a total
Reverse VAT (sometimes called a VAT remover) works back from an amount including VAT. That total is 105% of the price, so the VAT is 5/105 of it, and the price is the total divided by 1.05. Taking 5% off the total gives the wrong answer.
VAT = 1,050.00 × 5 ÷ 105 = 50.00 Price = 1,050.00 ÷ 1.05 = 1,000.00 Wrong: 1,050.00 − 5% = 997.50What “amount including VAT” means
An amount including VAT is the full price the customer pays, with the 5% already added. UAE shop and menu prices shown to consumers must include VAT, so the receipt total is an amount including VAT. An amount excluding VAT is the price before VAT is added.
Excluding VAT: 200.00 VAT at 5%: 10.00 Including VAT: 210.00Worked examples in AED
Common amounts, worked both ways. Each line is rounded to 2 decimal places.
AED 100 + 5% VAT = 105.00 AED 1,750 + 5% VAT = 1,837.50 AED 500 including VAT: VAT 23.81, price 476.19 AED 1,750 including VAT: VAT 83.33, price 1,666.67 AED 10,000 including VAT: VAT 476.19, price 9,523.81Each line is rounded to 2 decimal places (fils). If you invoice in another currency, the VAT amount on a UAE tax invoice must still be shown in AED.
FAQ
Common Questions
What is the VAT rate in the UAE?
The standard rate is 5%. Some supplies are zero-rated, such as exports of goods and services outside the GCC and international transport. Others are exempt, such as residential rent after the first supply, bare land and local passenger transport.
How do I work out the VAT in a price that already includes it?
Multiply the total by 5 and divide by 105. For a total of AED 1,050, the VAT is AED 50 and the price before VAT is AED 1,000. Choose “Remove VAT from a total” above to do it for you.
How do I calculate reverse VAT in the UAE?
Divide the amount including VAT by 1.05 to get the price before VAT, then subtract to find the VAT. For AED 1,750 including VAT, the price is AED 1,666.67 and the VAT is AED 83.33.
What is 5% VAT on AED 1,750?
AED 87.50, so the total including VAT is AED 1,837.50. If AED 1,750 already includes VAT, the VAT inside it is AED 83.33.
Is reverse VAT the same as the reverse charge?
No. Reverse VAT is just a calculation that takes VAT out of a total. The reverse charge is a VAT rule where the buyer, not the supplier, accounts for the VAT, for example on imports. Our reverse charge guide explains it.
What is the difference between zero-rated and exempt?
Neither carries VAT on the sale. On zero-rated supplies you can still recover the VAT you paid on related costs. On exempt supplies you cannot recover that VAT.
When does a business have to register for VAT?
Registration is mandatory when taxable supplies and imports pass AED 375,000 in the last 12 months, or are expected to in the next 30 days. A business can register voluntarily from AED 187,500.
Can TaxMate add VAT to my invoices automatically?
Yes. TaxMate applies the right VAT rate to each invoice line, shows the VAT in AED on Arabic and English tax invoices, and builds your VAT 201 return from the same entries.