How it's calculated
Add VAT: multiply the price before VAT by the rate. At 5%, VAT = net × 0.05 and the total = net + VAT.
Remove VAT: divide the VAT-inclusive total by 1.05 to get the net price; the VAT is the difference. Taking 5% off the total is a common mistake: 5% of 1,050 is 52.50, but the VAT inside 1,050 is 50.
Rounding: the calculator works in whole fils, rounds the VAT to 2 decimals (half up) and derives the other amount, so net + VAT always equals the total exactly.
Leaving a job in the UAE? Estimate your gratuity with the UAE gratuity calculator. For Saudi prices at 15%, use the Saudi VAT calculator.
Worked examples
- Add VAT to 200.00 AED: 200.00 × 5% = 10.00 → 210.00 AED
- Remove VAT from 525.00 AED: 525.00 ÷ 1.05 = 500.00 net, VAT 25.00
- Small amounts round half up: 0.10 × 5% = 0.005 → 0.01, total 0.11 AED
Standard-rated, zero-rated and exempt supplies
The 5% standard rate applies to most goods and services in the UAE. Some supplies are zero-rated (for example many exports and international transport) and some are exempt (for example certain residential property, local passenger transport and some financial services).
Which treatment applies depends on the VAT law and Federal Tax Authority guidance. This calculator only does the arithmetic for the rate you choose; it does not decide how a supply is taxed.
When did UAE VAT start?
The UAE introduced VAT on 1 January 2018 at a standard rate of 5%.
Using another rate
If you need a different rate, for example to compare a price with Saudi Arabia's 15%, switch on the custom rate and enter it.
Frequently asked questions
How do I add 5% VAT to a price?
Multiply the price by 1.05. For example, 1,000 AED becomes 1,050 AED, of which 50 AED is VAT.
How do I remove VAT from a total?
Divide the total by 1.05. For 1,050 AED the price before VAT is 1,000 AED and the VAT is 50 AED.
Why is the VAT not 5% of the total?
Because the total already contains the VAT. VAT is 5% of the net price, which equals about 4.76% of the VAT-inclusive total.
Does every product carry 5% VAT?
No. Some supplies are zero-rated or exempt. Check FTA guidance for your case; the calculator does not decide the tax treatment.
Can I use a different rate?
Yes. Tick “Use a custom rate”, then enter any rate from 0 to 100%. The result is labelled as using a manual rate.
Is anything I enter sent or saved?
No. The calculation runs in your browser and nothing you type leaves your device or appears in the address bar.