Add or remove VAT at United Arab Emirates's standard rate of 5%. Pre-set to AED — switch modes to work forwards from a net price or backwards from a VAT-inclusive total.
AED 1,000.00 × 1.05 = AED 1,050.00
Adding 5% VAT to a designer bag priced at AED 1,000.00 (net) gives AED 1,050.00 gross — that's AED 50.00 of VAT.
AED 250.00 ÷ 1.05 = AED 238.10
Removing 5% VAT from a mall dinner marked AED 250.00 (gross) leaves AED 238.10 net — the VAT portion is AED 11.90.
| Rate | Applies to |
|---|---|
| 5% standard | Most goods and services |
| 0% | Zero-rated exports, international transport, some healthcare & education |
Businesses in United Arab Emirates generally must register for VAT once taxable turnover reaches AED 375,000 taxable supplies (mandatory). VAT registration and returns are administered by Federal Tax Authority (FTA).
The standard VAT rate in United Arab Emirates is 5%. Reduced rates of 0% apply to items such as zero-rated exports, international transport, some healthcare & education. (Rates as of 2026-07-13.)
Divide the VAT-inclusive price by 1.05 (that is, 1 + 5%). Removing 5% VAT from a mall dinner marked AED 250.00 (gross) leaves AED 238.10 net — the VAT portion is AED 11.90.
Multiply the net price by 1.05. Adding 5% VAT to a designer bag priced at AED 1,000.00 (net) gives AED 1,050.00 gross — that's AED 50.00 of VAT.
You must register for VAT in United Arab Emirates once your taxable turnover reaches AED 375,000 taxable supplies (mandatory). Registration is handled by Federal Tax Authority (FTA).
Rates and thresholds shown as of 2026-07-13. Tax rules change — confirm current figures with Federal Tax Authority (FTA) before relying on them.