Add the UAE's 5% VAT to a price, or work out the VAT inside a VAT-inclusive amount.
Tax year Rate in force November 2026Rules checked: November 2026How we calculate
VAT includedAED 50.00
Excluding VAT
AED 1,000.00
Including VAT
AED 1,050.00
Excluding VAT
AED 1,000.00
VAT 5%
AED 50.00
Including VAT
AED 1,050.00
The VAT in a VAT-inclusive price is 1/21 of the price.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
The formulas
Adding VAT: price including VAT = price × 1.05.
Removing VAT: VAT = price including VAT ÷ 21; price excluding VAT = price including VAT ÷ 1.05.
Worked example
AED 1,050 including VAT
VAT includedAED 50.00
Excluding VAT
AED 1,000.00
Including VAT
AED 1,050.00
Excluding VAT
AED 1,000.00
VAT 5%
AED 50.00
Including VAT
AED 1,050.00
A consultancy invoice of AED 20,000 plus VAT totals AED 21,000; the AED 1,000 of output VAT is declared in the VAT return.
Tips
Tax invoices must show the supplier’s TRN and the VAT amount in AED.
File returns quarterly (or monthly if directed) within 28 days of the end of the tax period.
Tourists can reclaim VAT on eligible purchases through the Planet tax refund scheme at departure.
Questions people ask
What is the VAT rate in the UAE?
5% on most goods and services since VAT was introduced on 1 January 2018.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.05, or take 1/21 of it as the VAT. AED 1,050 includes AED 50 of VAT.
When must a business register for VAT?
Registration is mandatory when taxable supplies and imports exceed AED 375,000 in the past 12 months or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500.
What is zero-rated or exempt?
Exports, international transport, certain education and healthcare, and the first supply of residential property are zero-rated. Residential rent after the first supply, bare land and local passenger transport are exempt.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
