VATCalculate VAT in United Arab Emirates
Work out United Arab Emirates's VAT in one step: enter a net or gross price in AED and get the tax amount and the total at 5%.
United Arab Emirates VAT
VAT rates in United Arab Emirates
United Arab Emirates keeps things simple with a single VAT rate of 5%: there are no reduced rates, so the same percentage applies to every taxable sale. The standard rate is below the Middle East average of 11.4% and shared with 5 other countries in our list.
| Rate | Type |
|---|---|
| 5% | Standard rate |
The UAE introduced VAT in 2018 at 5%, one of the lowest rates in the world. Several essential items such as some healthcare and education are zero-rated.
Official source: tax.gov.ae. Rates checked October 2026.
How to calculate VAT in United Arab Emirates
Adding VAT to a net price
VAT = net × 5 / 100
Gross = net × 1.05
Removing VAT from a gross price
Net = gross / 1.05
VAT = gross − net
A common mistake is to take 5% off the gross price. That gives the wrong figure: the VAT inside a gross price is only 4.76% of it.
VAT examples in AED
Common amounts with 5% VAT added:
| Net | VAT 5% | Gross |
|---|---|---|
| 10.00 AED | 0.50 AED | 10.50 AED |
| 50.00 AED | 2.50 AED | 52.50 AED |
| 100.00 AED | 5.00 AED | 105.00 AED |
| 500.00 AED | 25.00 AED | 525.00 AED |
| 1,000.00 AED | 50.00 AED | 1,050.00 AED |
| 10,000.00 AED | 500.00 AED | 10,500.00 AED |
Removing VAT from gross prices
| Gross | Net | VAT |
|---|---|---|
| 52.50 AED | 50.00 AED | 2.50 AED |
| 105.00 AED | 100.00 AED | 5.00 AED |
| 525.00 AED | 500.00 AED | 25.00 AED |
| 1,050.00 AED | 1,000.00 AED | 50.00 AED |
Questions about VAT in United Arab Emirates
What is the VAT rate in United Arab Emirates?
The standard VAT rate in United Arab Emirates is 5%.
How do I add 5% VAT to a price?
Multiply the net price by 1.05. For example 500.00 AED × 1.05 = 525.00 AED.
How do I remove VAT from a gross price in United Arab Emirates?
Divide the gross price by 1.05. For example 525.00 AED ÷ 1.05 = 500.00 AED net; the difference is the VAT.
How much of a AED price is VAT?
At 5%, VAT makes up 4.76% of the gross price (5 ÷ 105).