🇦🇪 UAE Federal Tax Authority · FTA Compliant · 2026
UAE VAT Calculator 2026
Instantly add or remove 5% VAT · Free · Accurate · Bulk calculator included
AED
🇦🇪 UAE Standard VAT Rate (FTA 2026)
5%
Results
Net Amount
—
excl. VAT
VAT (5%)
—
tax only
Total Price
—
incl. VAT
Formula used
Enter an amount above and click Calculate
📦 Bulk VAT Calculator — multiple items
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Description
Amount
Type
UAE VAT 2026 — Quick Reference
Standard Rate5%
Zero Rate0%
ExemptNo VAT
Introduced1 Jan 2018
Mandatory thresholdAED 375,000
Voluntary thresholdAED 187,500
Filing deadline28 days
Late reg. penaltyAED 10,000
Standard (most goods & services)5%
Zero-rated (exports, healthcare, education)0%
Exempt (residential rental, transport)—
Formula Cheatsheet
Add VAT
Amount × 1.05
1,000 × 1.05 = 1,050
Remove VAT
Amount ÷ 1.05
1,050 ÷ 1.05 = 1,000
VAT amount only
Amount × 0.05
1,000 × 0.05 = 50
Disclaimer: This tool uses the FTA standard 5% VAT rate for estimation only. For official compliance and legal advice consult a qualified UAE tax professional or visit tax.gov.ae. Last updated May 2026.
Contents
What is UAE VAT Calculator 2026?
✦ Quick Answer
The UAE VAT calculator instantly adds or removes the standard 5% VAT rate from any AED amount. Enter your price, select Add or Remove VAT, and instantly see the net amount, VAT amount and total. Free, FTA-compliant, updated for 2026.
Value Added Tax (VAT) was introduced in the UAE on January 1, 2018 under Federal Decree-Law No. 8 of 2017. The UAE Federal Tax Authority (FTA) administers all VAT obligations. The standard rate is 5% — one of the world’s lowest — and applies to most goods and services in 2026.
📌 UAE VAT 2026 — Key Numbers
Standard rate: 5% · Zero rate: 0% (exports, healthcare, education) · Exempt: residential rental, certain financial services · Mandatory registration: AED 375,000/year · Filing deadline: 28 days after tax period end
How to Calculate 5% UAE VAT
Adding VAT
| To Find | Formula | Example: AED 1,000 |
|---|---|---|
| VAT Amount | Net × 0.05 | 1,000 × 0.05 = AED 50.00 |
| Total (incl. VAT) | Net × 1.05 | 1,000 × 1.05 = AED 1,050.00 |
Removing VAT
| To Find | Formula | Example: AED 1,050 |
|---|---|---|
| Net Amount | Total ÷ 1.05 | 1,050 ÷ 1.05 = AED 1,000.00 |
| VAT Amount | Total − Net | 1,050 − 1,000 = AED 50.00 |
📐 Input VAT vs Output VAT
Output VAT — VAT charged on your sales. Collected on FTA’s behalf.
Input VAT — VAT paid on purchases. Recoverable from the FTA.
VAT Payable = Output VAT − Input VAT. If input exceeds output → you receive a refund.
Input VAT — VAT paid on purchases. Recoverable from the FTA.
VAT Payable = Output VAT − Input VAT. If input exceeds output → you receive a refund.
UAE VAT Rates 2026
| Category | Rate | Input VAT Recoverable | Examples |
|---|---|---|---|
| Standard-Rated | 5% | ✅ Yes | Electronics, hotels, restaurants, professional services, commercial rent |
| Zero-Rated | 0% | ✅ Yes | Exports outside GCC, international transport, healthcare, education, first residential sale |
| Exempt | None | ❌ No | Residential property rental, financial services (no fee), local passenger transport, bare land |
⚠️ Zero-Rated vs Exempt — Critical Difference
Zero-rated businesses charge 0% VAT but can still recover all input VAT — often resulting in FTA refunds.
Exempt businesses charge no VAT and cannot recover input VAT — this directly raises operating costs. Misclassifying your supply is one of the most expensive mistakes in UAE VAT.
Exempt businesses charge no VAT and cannot recover input VAT — this directly raises operating costs. Misclassifying your supply is one of the most expensive mistakes in UAE VAT.
UAE VAT Registration Thresholds 2026
| Type | Threshold | Requirement |
|---|---|---|
| Mandatory | AED 375,000/year | Register within 30 days. Penalty: AED 10,000. |
| Voluntary | AED 187,500/year | Optional — allows input VAT recovery. |
| Non-Resident | Any UAE taxable supply | Register immediately — no threshold applies. |
Worked Example
A Dubai consultancy invoices a client AED 50,000 for professional services (standard-rated, 5% VAT).
| Item | Calculation | Amount (AED) |
|---|---|---|
| Services (net) | Base amount | 50,000.00 |
| VAT at 5% | 50,000 × 0.05 | 2,500.00 |
| Total Invoice | 50,000 × 1.05 | 52,500.00 |
The firm also bought office supplies for AED 10,500 incl. VAT. Input VAT = 10,500 ÷ 1.05 × 0.05 = AED 500. VAT payable to FTA = AED 2,500 − AED 500 = AED 2,000.
💡 Pro Tip: Always retain original invoices showing VAT separately. The FTA requires documentary evidence for all input VAT claims. Missing invoices = unrecoverable VAT.
Filing Deadlines & Penalties 2026
Returns and payments due within 28 days after each tax period end. Updated penalties under Cabinet Decision No. 129 of 2025 (effective April 2026):
| Violation | Penalty |
|---|---|
| Late VAT registration | AED 10,000 |
| Late return — 1st time | AED 1,000 |
| Late return — repeated within 24 months | AED 2,000 |
| Late payment (immediate) | 2% of unpaid tax |
| Late payment (monthly after 1 month) | 4% per month |
| Failure to issue VAT invoice | AED 5,000 per invoice |
| Incorrect VAT return (1st) | AED 3,000 |
5 Common UAE VAT Mistakes
⛔ FTA audits find these consistentlyAll five are preventable.
01
Confusing Zero-Rated with Exempt
Exempt means no input VAT recovery. Zero-rated allows recovery. Misclassifying is the most common and costly audit finding.
02
Late Registration
Crossing AED 375,000 requires registration within 30 days. AED 10,000 penalty — automatic, no exceptions.
03
Incomplete Tax Invoices
Valid invoices need: supplier TRN, customer details (B2B), description, net, VAT rate, VAT amount, total. Missing any field = AED 5,000 per invoice.
04
Missing VAT on Imports
VAT is due on imports even from unregistered overseas suppliers. Self-account and recover as input VAT in the same return.
05
Free Zone Misunderstanding
Most UAE Free Zones are inside the UAE for VAT purposes. Only specific Designated Zones differ. Free Zone location does not exempt you.
5 Pro Tips to Manage UAE VAT in 2026
✅ Legitimate ways to reduce your VAT burden
- Claim all input VAT. Review all business purchases — utilities, maintenance, professional fees. Many businesses miss legitimate recoverable VAT.
- Register voluntarily. Between AED 187,500–375,000? Voluntary registration lets you reclaim input VAT — often a significant benefit.
- Apply for VAT grouping. Related businesses can form a VAT group and make intra-group supplies VAT-free — reducing compliance costs.
- Join the tourist refund scheme. Register with Planet VAT to attract international shoppers who can reclaim VAT at departure.
- File on time, every time. Set calendar reminders — 28 days goes fast. The 2026 penalty structure has zero tolerance for late filing.
FAQ — UAE VAT Calculator 2026
The standard UAE VAT rate is 5%, introduced January 1, 2018. This rate is unchanged in 2026. Some supplies are zero-rated (0%) such as exports, healthcare and education. Others are fully exempt — residential rentals, certain financial services.
To add VAT: multiply net amount by 1.05. Example: AED 2,000 × 1.05 = AED 2,100 (VAT = AED 100).
To remove VAT from an inclusive price: divide by 1.05. AED 2,100 ÷ 1.05 = AED 2,000 net. Use the calculator above for instant results.
To remove VAT from an inclusive price: divide by 1.05. AED 2,100 ÷ 1.05 = AED 2,000 net. Use the calculator above for instant results.
Businesses with taxable supplies exceeding AED 375,000/year must register within 30 days. Penalty for late registration: AED 10,000. Businesses between AED 187,500–375,000 may register voluntarily. Non-residents with any UAE taxable supply must register immediately.
Exempt (no VAT, no input VAT recovery): residential property rental, financial services without explicit fee, local passenger transport, bare land.
Zero-rated (0%, input VAT recoverable): exports outside GCC, international transport, healthcare, education, first residential property sale.
Zero-rated (0%, input VAT recoverable): exports outside GCC, international transport, healthcare, education, first residential property sale.
Returns and payments are due within 28 days after the end of each tax period. Most businesses file quarterly. Filing is done via the FTA eServices portal. Late filing penalties: AED 1,000 first offence, AED 2,000 for repeat within 24 months.
Yes. The UAE tourist VAT refund scheme operates via Planet VAT kiosks at airports. Tourists can reclaim VAT on eligible purchases from participating retailers. Minimum purchase AED 250 per receipt. Visit tax.gov.ae for participating retailers and conditions.
Sources:
UAE Federal Tax Authority (FTA) ·
PwC Tax Summaries UAE 2026.
Calculator uses FTA standard 5% rate. Consult a qualified UAE tax professional for compliance advice.
Last Updated: May 2026.