Short answer: UAE VAT is 5% on most goods and services. Add VAT by multiplying the net amount by 1.05; remove VAT by dividing the gross amount by 1.05. The direction matters because subtracting 5% from a VAT-inclusive total gives the wrong answer.

The 5% VAT formula in one line

For a net (VAT-exclusive) amount: gross = net x 1.05 and VAT = net x 0.05. For a gross (VAT-inclusive) amount: net = gross / 1.05 and VAT = gross x 5 / 105. Those two formulas are the whole calculator. Everything else is labelling and rounding.

Example: AED 1,000 net becomes AED 1,050 gross, with AED 50 VAT. Reverse it: AED 1,050 gross becomes AED 1,000 net, again with AED 50 VAT. The VAT amount is the same in both directions; only the starting number changes.

Why adding and removing VAT are not the same

A common mistake is to take a shelf price of AED 1,050 and subtract 5%. That gives AED 997.50, not AED 1,000. The 5% was calculated on the net amount, so the gross contains 105%, not 100%. To go back, divide by 1.05.

  • Add VAT: you know the net price and need the customer total.
  • Remove VAT: you know the customer total and need the net revenue and tax portion.
  • VAT portion only: use gross x 5 / 105, which is the same as gross minus net.

How to use the Wafa Smart UAE VAT calculator

  1. Type the amount you have. Choose Add VAT if it is net, or Remove VAT if it already includes VAT.
  2. Leave the rate at 5% for the UAE standard rate. Use 0% for zero-rated maths, or Custom for another GCC rate.
  3. Check the currency. The default is AED; you can change the three-letter code.
  4. Press Calculate. The receipt shows Net, VAT and Gross as separate lines.
  5. Use Reset before checking the next invoice so old numbers do not carry over.

Open the free UAE VAT calculator — it works in the browser, needs no upload and runs on mobile.

Worked AED examples

  • AED 100 net: VAT AED 5, gross AED 105.
  • AED 500 net: VAT AED 25, gross AED 525.
  • AED 5,000 net: VAT AED 250, gross AED 5,250.
  • AED 1,050 gross: net AED 1,000, VAT AED 50.
  • AED 525 gross: net AED 500, VAT AED 25.

Five mistakes to avoid

  1. Subtracting 5% from the gross. Use division by 1.05 instead.
  2. Mixing net and gross in one total. Label every figure before you add lines together.
  3. Rounding too early. Keep full precision while calculating and round the final fils amount only.
  4. Using 5% for an exempt supply. Zero-rated and exempt are not the same thing.
  5. Treating a calculator as a tax invoice. A tax invoice still needs the supplier and customer details, TRN, date, invoice number and VAT breakdown.

Who this guide is for

Freelancers in Dubai, small companies in Abu Dhabi and Sharjah, online sellers, landlords and anyone checking a quotation. It handles one line at a time. For a full VAT return, calculate each rate group separately and add the VAT totals.

Rates and rules can change. Confirm the current FTA position before filing a return. The calculator is an arithmetic helper, not tax advice.

Frequently asked questions

How do I calculate 5% VAT in the UAE?

Multiply the net amount by 0.05 to get VAT, then add it to the net. For AED 1,000 the VAT is AED 50 and the gross is AED 1,050.

How do I remove 5% VAT from a total?

Divide the gross by 1.05. For AED 1,050 the net is AED 1,000 and the VAT portion is AED 50. Do not subtract 5% from the gross.

Is VAT 5% in Dubai?

Yes. Dubai uses the federal UAE VAT rules, including the 5% standard rate. The same rate applies across the seven emirates.

Can I use the calculator for a custom GCC rate?

Yes. Choose Custom and enter the rate you need. Confirm the current rate with the relevant tax authority before relying on the result.

Check a UAE invoice in seconds

Add or remove 5% VAT in AED with a receipt-style breakdown.

Open UAE VAT calculatorBrowse free tools

Published 2026-10-30 by Wafa Smart Tech, Lahore. This is general information, not legal, tax or financial advice. Confirm current rules with the relevant authority or a qualified professional.