UAE VAT calculator
UAE VAT calculatorUAE VAT is 5%, the lowest standard rate in this catalog. Registration is mandatory above AED 375,000 of taxable supplies, voluntary from AED 187,500, and unavailable below that.
Worked example · Vat Amount
With Amount of 100, this model computes Vat Amount of 5. See the full working.
✓ Verified against 6 self-test cases Updated for 2026 · sources checked 2026-10-05
How vat in United Arab Emirates is calculated
The rate comes from the statute. Article 3 of **Federal Decree-Law No. 8 of 2017** provides that *"a standard rate of 5% Tax shall be imposed on any supply or Import pursuant to Article 2 of this Decree-Law"*. There is one rate and no reduced band — supplies outside it are zero-rated or exempt rather than cheaper, which is a different mechanism and decides whether input tax can be reclaimed.
The UAE is the first country in this catalog with **two cited registration figures**, and the gap between them matters. The Decree-Law itself only defines the threshold as *"an amount specified in the Executive Regulation"*, so the numbers come from Cabinet Decision No. 52 of 2017: Article 7(1) fixes the **Mandatory Registration Threshold at AED 375,000** and Article 8(1) the **Voluntary Registration Threshold at AED 187,500**.
Three bands follow, which is why this page reports a registration *status* rather than a yes/no. Above AED 375,000 you must register. Between the two figures you may. **Below AED 187,500 you cannot register at all** — and that is the band a simple "registration required: no" would misdescribe, because it reads as though opting in were available. Both tests look back over the previous 12 months *or* forward to what is anticipated, so a signed contract can create the obligation before the revenue arrives.
Worked example
ShowHide the full working: 4 inputs, 7 computed steps
| Inputs | |
|---|---|
| Amount | 100 |
| Direction | Add VAT (net → gross) |
| B2B reverse charge applies | no |
| Taxable turnover, last 12 months | 0 |
| Computed by the engine | |
| Rate | 0.05 |
| Effective Rate | 0.05 |
| Net Amount ✓ pinned | 100 |
| Vat Amount ✓ pinned | 5 |
| Gross Amount ✓ pinned | 105 |
| Must Register | no |
| Registration Status | not available |
Every computed row comes from the engine, run on the inputs above. Rows marked ✓ pinned are also fixed by a published self-test, so a change to the model that moved them would fail its own tests.
Frequently asked questions
What is the VAT rate in the UAE?
5%, fixed by Article 3 of Federal Decree-Law No. 8 of 2017. It is the lowest standard VAT rate of any country in this catalog, and there is no reduced band — other supplies are zero-rated or exempt instead.
How much VAT is on 100 AED?
5.00 AED, for 105.00 AED including VAT. Working backwards, a 105.00 AED VAT-inclusive price contains exactly 5.00 AED of VAT.
When must I register for VAT in the UAE?
Once taxable supplies exceed AED 375,000 over the previous 12 months, or once you anticipate exceeding it in the next 12. That is the Mandatory Registration Threshold in Article 7 of Cabinet Decision 52 of 2017.
Can I register voluntarily below the threshold?
Only above AED 187,500, the Voluntary Registration Threshold in Article 8. Below that figure registration is not available at all — which is why this calculator reports three states rather than a yes/no.
Sources
- Federal Tax Authority - Federal Decree-Law No. 8 of 2017, Article 3 (5%) · checked 2026-10-05
- Federal Tax Authority - Cabinet Decision 52 of 2017, Articles 7-8 (AED 375,000 / 187,500) · checked 2026-10-05
Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 6 self-test cases; the sources support that the formula matches the rules.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 6 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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