UAE VAT Calculator 2026: How to Calculate VAT in UAE

UAE VAT calculator guide 2026: how to add 5% VAT to a price, reverse VAT from an inclusive amount, calculate input and output VAT, and work out your.

Paci Research Team

UAE Tax & Compliance · Paci Finance

4 min read

Verified to 2026 sources

UAE VAT Calculator 2026: How to Calculate VAT in UAE — UAE VAT calculator 2026: add VAT, reverse VAT, and extract VAT from inclusive prices — all at 5%

In this guide

Quick answer
UAE VAT calculation formulas
How to calculate quarterly VAT payable
UAE VAT calculation examples
FAQ

5%UAE standard VAT rate — applied to most domestic goods and services

× 1.05Formula to add UAE VAT to a net (exclusive) price

÷ 1.05Formula to extract the net price from a VAT-inclusive total

Output − InputNet VAT payable to FTA = VAT collected minus VAT paid on purchases

TL;DR UAE VAT is 5%. To add VAT: multiply the net price × 1.05. To extract VAT from an inclusive price: divide by 1.05 and subtract the net. To calculate VAT payable: output VAT (VAT collected from customers) minus input VAT (VAT paid to suppliers) = net VAT due to FTA.

UAE VAT calculation formulas

Calculation	Formula	Example
Add VAT to a net price	Net price × 1.05	AED 10,000 × 1.05 = AED 10,500
VAT amount on a net price	Net price × 0.05	AED 10,000 × 0.05 = AED 500 VAT
Extract net from VAT-inclusive price	Inclusive ÷ 1.05	AED 10,500 ÷ 1.05 = AED 10,000 net
VAT amount in a VAT-inclusive price	Inclusive − (Inclusive ÷ 1.05)	AED 10,500 − AED 10,000 = AED 500 VAT
Net VAT payable	Output VAT − Input VAT	AED 5,000 − AED 2,000 = AED 3,000 due

How to calculate quarterly VAT payable

Step 1 — Total output VAT: Add up all the VAT you charged to customers during the quarter. This is 5% of each taxable (standard-rated) sale you made. Zero-rated sales contribute zero output VAT; exempt sales are excluded entirely.
Step 2 — Total input VAT: Add up all the VAT you paid to suppliers during the quarter on business purchases — from VAT invoices you received. Only input VAT on purchases for taxable activities is recoverable. Input VAT on exempt activities or blocked items (entertainment, passenger vehicles) is not recoverable.
Step 3 — Net VAT: Output VAT minus input VAT. If positive: you owe this to the FTA. If negative: you have a VAT credit — you can carry it forward or apply for a refund.
Step 4 — File and pay: UAE VAT returns are filed quarterly (or monthly for large businesses). The return is due within 28 days of the quarter end. Payment must be received by the FTA by the due date — late payment attracts 14% per annum (Cabinet Decision 129/2025).

UAE VAT calculation examples

Consultant billing a client: Net fee = AED 50,000. VAT = 50,000 × 0.05 = AED 2,500. Total invoice = AED 52,500. Output VAT = AED 2,500.
Retail customer buying furniture: Price tag shows AED 1,050 (VAT-inclusive). VAT = 1,050 − (1,050 ÷ 1.05) = AED 50. Net price = AED 1,000.
Quarterly VAT return: Output VAT from sales = AED 45,000. Input VAT from supplier invoices = AED 18,000. Net VAT payable = AED 27,000. Pay to FTA within 28 days of quarter end.
International sale (zero-rated): Export to UK customer, net price AED 100,000. VAT = AED 0 (zero-rated). Output VAT = AED 0. Input VAT on related costs fully recoverable.

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Frequently asked questions

What is the UAE VAT rate in 2026?

The UAE VAT rate is 5% (standard rate) — unchanged since VAT was introduced on 1 January 2018. There is no plan to increase the rate in 2026. Some supplies are zero-rated (0%) — mainly exports, healthcare, and education — and some are exempt (no VAT at all, no input recovery). The 5% rate applies to all standard-rated goods and services sold in the UAE.

How do I calculate 5% VAT in UAE?

To add 5% VAT to a net price: multiply by 1.05. Example: AED 10,000 × 1.05 = AED 10,500. To find the VAT amount only: multiply by 0.05. Example: AED 10,000 × 0.05 = AED 500. To extract the net price from a VAT-inclusive total: divide by 1.05. Example: AED 10,500 ÷ 1.05 = AED 10,000.

What is the difference between output VAT and input VAT?

Output VAT is the VAT you collect from your customers on your sales — it is owed to the FTA. Input VAT is the VAT you pay to your suppliers on your business purchases — it is recoverable (offset against your output VAT). The net VAT you pay to the FTA = output VAT minus recoverable input VAT. If input VAT exceeds output VAT, you have a VAT credit (refund or carry-forward).

When is UAE VAT due to the FTA?

UAE VAT returns are filed quarterly for most businesses (tax period ends 31 March, 30 June, 30 September, 31 December). The return and payment are due within 28 days of the tax period end — so 28 April, 28 July, 28 October, and 28 January. Large businesses (annual taxable turnover above AED 150 million) file monthly. Late payment penalty is 14% per annum of the unpaid VAT under Cabinet Decision 129/2025 (effective 14 April 2026).

Official UAE Government Sources