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The standard VAT rate in the UAE is 5%. The calculator above adds 5% to a net price or removes it from a gross total and shows the net price, the VAT and the total. Source: Federal Tax Authority, VAT legislation, checked .
The two sums
Adding VAT: net price times 1.05 gives the total. Removing VAT: total divided by 1.05 gives the net price.
| Net price | VAT at 5% | Total |
|---|---|---|
| AED 100 | AED 5 | AED 105 |
| AED 1,000 | AED 50 | AED 1,050 |
| AED 10,000 | AED 500 | AED 10,500 |
Why the order matters
A shop sells an item for AED 525 including VAT. The net price is AED 500 and the VAT is AED 25. If you take 5% of AED 525 you get AED 26.25, which is wrong. Always divide by 1.05 first.
What a tax invoice must show
The FTA sets what a tax invoice contains: the words "Tax Invoice", the supplier name, address and TRN, the buyer details where the buyer is a registrant, a sequential number, the issue date, a description, the unit price, quantity, tax rate and amount in AED for each line, and the total and VAT amount in AED. Source: VAT Executive Regulation, Article 59, checked . A simplified invoice needs fewer details.
When you must register
Registration is mandatory when your taxable supplies and imports pass AED 375,000 over the previous 12 months or are expected to in the next 30 days. It is voluntary from AED 187,500. See VAT registration for the steps.
Rounding and currency
VAT is shown in AED on the invoice. If you invoice in another currency, the tax amount must also be shown in AED, with the exchange rate used. Round each invoice line consistently and keep the same method across your invoices so your returns reconcile to your books.
Returns and payment
A VAT return and the payment are due by the 28th day after the end of the tax period. The deadline checker works the date out for you, and VAT return filing explains what goes in the return.
Get a firm to check your VAT
Use the quote form below to ask listed firms for a fixed fee for VAT registration or returns.
