Question 1

What is the VAT rate in the UAE?

Accepted Answer

The standard rate is 5%, in force since January 2018. Certain supplies are zero-rated (such as most exports and international transport) or exempt (such as some financial services and residential leases) — this calculator handles the arithmetic; which category applies to your goods is a question for your accountant or the FTA.

Question 2

When does a UAE business have to register for VAT?

Accepted Answer

Registration is mandatory when taxable supplies and imports exceed AED 375,000 per year, and voluntary from AED 187,500. Registered businesses must charge VAT, file returns and can reclaim input VAT.

Question 3

How do I remove VAT from a VAT-inclusive price?

Accepted Answer

Divide by 1.05 — not subtract 5%. An AED 105 inclusive price is AED 100 net + AED 5 VAT. Subtracting 5% of 105 (5.25) gives the wrong answer; the 'remove' mode here does the correct division.

Question 4

Do prices in the UAE have to be shown including VAT?

Accepted Answer

Consumer-facing advertised prices must generally be VAT-inclusive under FTA rules, with limited exceptions. B2B quotes commonly state net + VAT — say clearly which yours is.

UAE VAT, calculated instantly.

Fair questions about UAE VAT.

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