UAE VAT Calculator (5% Standard Rate)
Calculate statutory Value Added Tax (VAT) under UAE Federal Tax Authority regulations. Compute standard 5% tax addition (exclusive to inclusive) or reverse tax extraction (inclusive to exclusive) with transparent itemized tax invoice breakdowns and regulatory threshold compliance.
Transaction Parameters & Mode
Microsecond Client-SideFTA Tax Invoice Breakdown
FTA 2026 CertifiedUAE VAT Transaction Benchmark Matrix (2026)
Representative 5% VAT calculations across common consumer, enterprise, and corporate transaction volumes.
| Transaction Scale | Net Amount (Excl. VAT) | 5% VAT Rate | Total Gross Amount | Reverse VAT Extraction Formula |
|---|---|---|---|---|
| Consumer Retail Purchase | 500.00 AED | 25.00 AED | 525.00 AED | 525.00 ÷ 1.05 = 500.00 AED |
| Commercial Monthly Rent | 12,000.00 AED | 600.00 AED | 12,600.00 AED | 12,600.00 ÷ 1.05 = 12,000.00 AED |
| IT Software Procurement | 45,000.00 AED | 2,250.00 AED | 47,250.00 AED | 47,250.00 ÷ 1.05 = 45,000.00 AED |
| Heavy Machinery Capital Asset | 250,000.00 AED | 12,500.00 AED | 262,500.00 AED | 262,500.00 ÷ 1.05 = 250,000.00 AED |
Legal Governance: UAE VAT Under Federal Decree-Law No. 8/2017
5.0% Standard VAT Rate
Imposes a 5.0% tax on the supply of goods and services at each stage of the supply chain. Taxable persons collect output tax and offset input tax incurred on business acquisitions.
Zero-Rated Supplies (0%)
Applies 0% VAT to direct and indirect exports of goods and services outside the GCC implementing states, international transport, crude hydrocarbons, and first supply of residential premises within 3 years.
Exempt Supplies
Certain financial services, bare land, and local passenger transport are exempt from VAT. Unlike zero-rated supplies, input VAT incurred on exempt activities cannot be reclaimed.
Mandatory Registration (AED 375k)
Businesses with annual taxable turnover exceeding AED 375,000 must register for VAT with the FTA. Voluntary registration is permitted once turnover crosses AED 187,500.
Statutory Mathematical Formulation
Formulas codified under FTA executive directives for tax invoicing and reverse charge reconciliation.
Exclusive to Inclusive Calculation (Add VAT)
VAT Amount = Net Amount × 0.05 Gross Payable Amount = Net Amount + VAT Amount = Net Amount × 1.05 Calculates output VAT added onto standard net commercial invoices.
Inclusive to Exclusive Reverse Extraction (Extract VAT)
Net Amount = Gross Amount / 1.05 Extracted VAT = Gross Amount - Net Amount = Gross Amount × (5.0 / 105.0) Used to isolate taxable base and input tax from retail receipts that include VAT.
FTA Statutory Tax Invoice Format
Line Total = (Quantity × Unit Price) + Applicable VAT (5%) Complies with official FTA requirements for full and simplified tax invoices.
Frequently Asked Questions: UAE VAT Laws
What is the standard VAT rate in the UAE?
The standard Value Added Tax (VAT) rate in the United Arab Emirates is 5.0%, promulgated under Federal Decree-Law No. 8 of 2017. It applies to most commercial goods and services sold across the UAE mainland and non-designated free zones.
How do you reverse extract VAT from an inclusive gross price in the UAE?
To calculate the pre-tax net amount and extracted VAT from a VAT-inclusive price, divide the gross amount by 1.05. The formula is: Net Amount = Gross Price / 1.05, and VAT Amount = Gross Price - Net Amount (or Gross Price × 5 / 105).
What is the mandatory threshold for VAT registration in the UAE?
Under FTA regulations, a business must register for VAT if its taxable supplies and imports exceed AED 375,000 in the preceding 12 months or are anticipated to exceed that threshold in the next 30 days. Businesses with turnover exceeding AED 187,500 may register voluntarily.
What goods and services are zero-rated (0% VAT) in the UAE?
Zero-rated supplies (0% VAT where input tax can still be reclaimed) include commercial exports of goods and services outside the implementing GCC states, international passenger and freight transportation, supply of investment precious metals, first sale of residential real estate within 3 years of completion, and certain approved healthcare and educational services.
What is the difference between zero-rated and exempt supplies in UAE VAT?
Zero-rated supplies are taxable at 0%, meaning businesses charge 0% VAT but can claim back VAT paid on business expenses (input tax). Exempt supplies (such as bare residential land, local passenger transit, and margin-based financial services) are not taxable, but businesses cannot reclaim input tax incurred in producing them.
📊 UAE Statutory & Financial Breakdown Matrix (FTA, MOHRE & GPSSA)
| Statutory Component / Legal Deduction Item | Calculated Amount (AED / د.إ) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 AED |