How do I calculate VAT from the total price?

To remove VAT from a total amount (inclusive of 5% tax), divide the total amount by 1.05. The result is the pre-tax amount. Subtract this from the total to get the VAT amount.

What is the VAT rate in UAE for 2026?

The standard VAT rate in the UAE is 5%. This applies to most goods and services including electronics, consulting, and dining.

How do I add VAT to a price?

To add 5% VAT to a net amount, multiply the amount by 1.05. The result is the gross total including tax.

Ratewise

Understanding UAE VAT (5%)

Value Added Tax (VAT) was introduced in the UAE on January 1, 2018, at a standard rate of 5%. It is a consumption tax placed on a product whenever value is added at each stage of the supply chain and at the point of sale.

For freelancers and business owners in Dubai and across the UAE, understanding how to calculate this is crucial for accurate invoicing and compliance with the Federal Tax Authority (FTA).

VAT Calculation Formulas

Adding VAT (Exclusive)

Total = Net Amount × 1.05

Use this when you have a base price and need to add tax to it for an invoice.

Removing VAT (Inclusive)

Net = Total Amount ÷ 1.05

Use this to find the base price from a receipt that already includes tax.

Key Regulations (2026 Update)

Registration Threshold: Mandatory for businesses with taxable supplies over AED 375,000.
Voluntary Registration: Available for revenue exceeding AED 187,500.
Filing Period: Typically quarterly for smaller businesses, monthly for larger ones.

UAE VAT Calculator (Add or Remove Tax)