the United Arab Emirates VAT calculator

In the United Arab Emirates the indirect tax on consumption is VAT (ضريبة القيمة المضافة, Value Added Tax), with a standard rate of 5%.

The UAE introduced VAT in 2018 at 5%, one of the lowest rates in the world, as part of diversifying revenue away from oil. Exports, international transport, healthcare and education are zero-rated.

This calculator works both ways: it adds the tax to a price without it and also breaks it out of a final price.

Enter the amount, choose whether to add or remove the tax and pick the rate. The rates available in the United Arab Emirates are: standard 5 % and zero-rated 0 %.

If you need a rate other than those listed, choose “other rate” and type it in.

A 5% rate introduced in 2018, still among the lowest in the world

The UAE introduced the tax on 1 January 2018, under the framework agreed by the Gulf states to diversify public revenue that had historically depended on oil. At 5%, it is one of the lowest standard rates anywhere, well below the global average.

Zero-rated and exempt are two different categories

Zero-rated covers exports outside the Gulf, international transport, certain healthcare and education services, and the first supply of newly built residential property within three years of completion. Exempt covers some financial services, bare land and local passenger transport.

Designated free zones

Certain free zones receive specific treatment for the movement of goods. Not every free zone in the country is designated for these purposes, and assuming otherwise is a common mistake.

Registration with the Federal Tax Authority

There is a mandatory registration threshold and a lower voluntary one, designed so that small businesses can recover the tax on their purchases if it suits them.