UAE VAT calculator
UAE VAT is a single rate, which makes the arithmetic easy and hides the only thing that is actually difficult: whether a supply is standard-rated, zero-rated or exempt. The calculator handles the first part; the note below handles the second.
Adding and removing 5%
To add VAT, multiply the taxable amount by 0.05. To remove it from an inclusive figure, divide by 1.05 — not by 0.05, and not by subtracting 5%, which on an inclusive AED 10,500 would give AED 9,975 instead of the correct AED 10,000.
Zero-rated is not exempt
A zero-rated supply is taxable at 0% and you can still recover input VAT on the costs of making it. An exempt supply is outside the tax and you cannot. They occupy different boxes on the VAT 201 and have opposite consequences for your recovery.
Out of scope
A third category again: not a supply for VAT purposes at all. Supplies between members of a tax group, and certain movements within designated zones, fall here.
UAE VAT calculation questions
How do I remove 5% VAT from a total?
Divide the inclusive amount by 1.05. Subtracting 5% gives a different and incorrect figure — on AED 10,500 the correct taxable amount is AED 10,000, not AED 9,975.
What is the difference between zero-rated and exempt?
A zero-rated supply is taxable at 0% and input VAT on related costs is recoverable. An exempt supply is outside the tax and input VAT is not recoverable, which also forces you to apportion your input tax.
Is VAT in the UAE always 5%?
The standard rate is 5%. Certain supplies are zero-rated, certain supplies are exempt, and some are outside the scope entirely — so the rate is 5% but it does not apply to everything.
Does this calculator send my figures anywhere?
No. It computes in your browser and nothing is transmitted. No tracking script is loaded on this page.
Related
Let the invoice do the arithmetic
tBiz applies the VAT treatment per line and builds the VAT 201 from it.