UAE VAT calculator
Add 5% VAT to a price, or split the VAT out of a total that already includes it. Figures in AED, nothing to sign up for.
VAT Calculator
UAE standard rate · 5%
The price you quote before tax. We add 5% on top.
VAT at 5%
AED 500.00
Net (excl. VAT)
AED 10,000.00
Total (incl. VAT)
AED 10,500.00
Standard-rated supplies only. Zero-rated and exempt supplies, and designated-zone rules, are not covered. Not tax advice.
How UAE VAT is calculated
The rate is simple. Mistakes usually come from working backwards from a total the wrong way.
Standard rate: 5%
Applies to most goods and services supplied in the UAE.
Adding VAT
Net × 1.05 = total. The VAT is net × 0.05.
Removing VAT
Total ÷ 1.05 = net. Never take 5% of the total.
Shown in AED
Tax on an invoice must be stated in dirhams, even if you invoice in another currency.
Worked example: A total of AED 21,000 including VAT has a net value of 21,000 ÷ 1.05 = AED 20,000, so the VAT is AED 1,000. Taking 5% of 21,000 would give AED 1,050, which is wrong.
What a UAE tax invoice must show
A VAT-registered business has to issue a tax invoice for standard-rated supplies. The Federal Tax Authority sets out what it must contain, and an invoice missing any of it can cause trouble for your customer when they claim the input tax back.
The essentials are the words "Tax Invoice", your name, address and TRN, the customer's name, address and TRN if they are registered, a sequential invoice number, the date of issue and the date of supply if different, a description of what was supplied, and for each line the quantity, unit price, VAT rate and VAT amount. Any discount, the total payable and the total VAT in AED complete it.
A simplified tax invoice with fewer details can be used when the customer is not VAT registered, or when they are and the supply is under AED 10,000. Lifeguard CRM builds these fields in, so every invoice it produces has them.
UAE VAT at a glance
- Standard rate5%
- In force since1 January 2018
- Mandatory registrationOver AED 375,000 a year
- Voluntary registrationOver AED 187,500 a year
- Simplified invoiceSupplies under AED 10,000
- RegulatorFederal Tax Authority (FTA)
VAT on every invoice, worked out for you
Typing VAT into invoice templates works until someone uses the wrong formula or forgets the TRN. Lifeguard CRM applies the rate to every line, prints the fields a tax invoice needs, numbers invoices in sequence, and keeps credit notes linked to the invoice they correct.
- 5% VAT applied per line, with zero-rated items supported
- Your TRN and your customer's printed automatically
- Sequential numbering and proper credit notes
- VAT reports ready for your return
Tax invoice preview
UAE VAT questions, answered
The standard rate is 5%, and it has been since VAT was introduced on 1 January 2018. Some supplies are zero-rated (for example certain exports and international transport) and some are exempt (for example certain residential property and local passenger transport).
Divide the total by 1.05 to get the net amount, then subtract that from the total to get the VAT. For AED 1,050, the net is AED 1,000 and the VAT is AED 50. Multiplying the total by 5% gives the wrong answer, because 5% of 1,050 is 52.50.
Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to in the next 30 days. Businesses above AED 187,500 can register voluntarily. Check the current thresholds with the Federal Tax Authority or your tax adviser.
A full tax invoice carries the complete set of details, including the recipient's TRN where they are registered. A simplified tax invoice, with fewer details, can be issued when the recipient is not VAT registered, or when they are registered and the supply is under AED 10,000.
This calculator and guide are for general information only and are not tax advice. Rules and thresholds can change; confirm with the Federal Tax Authority or a qualified UAE tax adviser.
Send quotes and VAT invoices from your CRM
Lifeguard CRM turns an accepted quote into a compliant tax invoice in one click. Let us show you on your own products.
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