UAE VAT Calculator
Add or remove 5% VAT instantly. Bulk calculator, tourist refund estimator, registration threshold checker, and GCC rate comparison. Free, no signup.
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The UAE VAT rate is 5% — introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. Standard-rated supplies attract 5% VAT; exports, international transport, and certain healthcare and education supplies are zero-rated; residential property resales and bare land are exempt.
Understanding UAE VAT
Value Added Tax (VAT) in the UAE is a 5% consumption tax applied at each stage of the supply chain. Introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017, it was the UAE's first broad-based consumption tax and a key part of the government's plan to diversify revenue beyond oil dependence. Every VAT-registered business collects the tax on behalf of the Federal Tax Authority (FTA) and remits the net amount after deducting input VAT on purchases.
VAT categories in UAE
| Category | Rate | Input VAT Recoverable? | Examples |
|---|---|---|---|
| Standard-rated | 5% | ✅ Yes | Most goods & services, commercial rent, cosmetic procedures |
| Zero-rated | 0% | ✅ Yes (claim input VAT) | Exports, international transport, licensed healthcare, approved education, first residential sale, investment-grade precious metals |
| Exempt | No VAT | ❌ No (cannot reclaim) | Residential rental, bare land, local passenger transport, certain financial services (bare interest, life insurance) |
VAT formulas
// Adding VAT to a net price:
VAT Amount = Net x 5%
Total Price = Net x 1.05
Example: AED 1,000 x 1.05 = AED 1,050
// Removing VAT from an inclusive price:
Net Price = Total / 1.05
VAT Amount = Total x 5 / 105
Example: AED 1,050 / 1.05 = AED 1,000
Formula source: Federal Tax Authority — UAE VAT Guide · Last verified June 2026
📋 2026-2027: UAE E-Invoicing Mandate
The UAE is rolling out mandatory e-invoicing under Cabinet Decision No. 106 of 2025. A voluntary pilot phase starts 1 July 2026. Businesses with annual revenue above AED 50 million must adopt e-invoicing by 1 January 2027. All VAT-registered businesses will eventually need to issue XML/JSON invoices through an FTA-accredited service provider. tax.gov.ae
Frequently Asked Questions
Is UAE VAT still 5% in 2026?
Yes. The UAE VAT rate has remained at 5% since its introduction on 1 January 2018 and has not changed as of June 2026. The UAE government has not announced any planned rate increase. This is different from Saudi Arabia, which raised its rate to 15% in 2020.
What is the difference between zero-rated and exempt VAT?
Both categories result in no VAT being charged to the customer, but they differ in a crucial way: businesses making zero-rated supplies can still reclaim input VAT on their business purchases. Businesses making exempt supplies cannot. For example, a business exporting goods (zero-rated) can reclaim VAT paid on its production inputs; a landlord renting residential property (exempt) cannot.
Does my UAE business need to register for VAT?
If your annual taxable supplies and imports exceed AED 375,000, you must register within 30 days of crossing the threshold. Failure to register on time incurs a penalty of AED 10,000. If your taxable revenue is between AED 187,500 and AED 375,000, you may register voluntarily — this allows you to reclaim input VAT and is often beneficial for B2B businesses.
When are UAE VAT returns due?
UAE VAT returns are due by the 28th of the month following the end of your tax period. Most businesses with revenue under AED 150 million file quarterly; those above file monthly. Returns are submitted through the FTA EmaraTax portal at tax.gov.ae. Late filing results in penalties starting at AED 1,000.
Can I get a VAT refund as a tourist in Dubai?
Yes, non-resident tourists aged 18 and above can claim back VAT on eligible shopping purchases through the UAE Tourist Refund Scheme. The minimum spend is AED 250 per transaction at a Planet Tax Free-registered store. You'll receive approximately 85% of the VAT paid (per the UAE Government portal), minus AED 4.80 per tax-free tag. Validate your purchases at a Planet kiosk at the airport before departure.
What records does a UAE VAT-registered business need to keep?
UAE VAT regulations require businesses to retain all VAT-related records for a minimum of 5 years. For real estate transactions, the retention period is 15 years. Records must be available for FTA audit on request.
Related Calculators
Results are for informational purposes only and do not constitute tax or professional advice. UAE VAT rules are set by the Federal Tax Authority and are subject to change — verify calculations at tax.gov.ae or with a licensed tax adviser before filing. Formula last verified June 2026. Privacy Policy