United Arab Emirates VAT Calculator & Rate
United Arab Emirates VAT calculator
VAT = 100.00 × 5% = 5.00; gross = 100.00 + 5.00 = 105.00
How much is VAT in the United Arab Emirates?
Ministry of Finance: VAT was introduced on 1 January 2018 at a standard rate of 5%. Supplies of residential properties are generally exempt; exports of goods and services outside the GCC and international transport are zero-rated. E-invoicing: a pilot started on 1 July 2026 and businesses with revenue of AED 50 million or more must implement it from 1 January 2027.
United Arab Emirates VAT worked examples
| Rate | Tax share of a gross price | Net 100 → tax / gross | Net 1,000 → tax / gross | Gross 100 → tax / net | Gross 1,000 → tax / net |
|---|---|---|---|---|---|
| 5% standard | 5/105 ≈ 4.7619% | 5.00 / 105.00 | 50.00 / 1,050.00 | 4.76 / 95.24 | 47.62 / 952.38 |
What each VAT rate applies to in the United Arab Emirates
| Rate | Applies to | Source |
|---|---|---|
| 0% (zero-rated) | Exports of goods and services outside the GCC; international transportation and related supplies; certain sea, air and land means of transport (such as aircraft and ships); investment-grade precious metals (e.g. gold or silver of 99% purity); newly constructed residential properties supplied for the first time within three years of construction; designated education and healthcare services and related goods and services | mof.gov.ae |
| Exempt | Supplies (sales or leases) of residential properties, generally; supplies of commercial properties are taxed at 5% | mof.gov.ae |
VAT registration threshold in the United Arab Emirates
| Threshold | Rule | Source |
|---|---|---|
| AED 375,000 | Mandatory registration: taxable supplies and imports exceed AED 375,000 | mof.gov.ae |
| AED 187,500 | Voluntary registration: taxable supplies and imports, or expenses, exceed AED 187,500 | mof.gov.ae |
About this page
Worked in whole cents: the tax is rounded to the nearest cent (half a cent goes up) and the other amount is the difference, so the boxes always add up. From a gross amount the tax is gross × rate ÷ (100 + rate); from a typed tax amount the net is worked back and your tax amount stays as typed. Your tax authority may set its own rounding rules for invoices.
Add VAT: gross = net × (1 + rate ÷ 100). Extract VAT: tax = gross × rate ÷ (100 + rate), and net = gross − tax.
Not tax advice. Rates were last verified on the date shown; confirm with the linked official source before invoicing.