# VAT Calculator UAE 2026 — Add or Remove 5%

Source page: https://valem.run/calculators/uae/vat

UAE 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.

**Tax year:** 2026

## How it 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

With Amount of 100, this model computes Vat Amount of 5.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `amount` | Amount | number |
| `direction` | Direction | string |
| `annualTurnover` | Taxable turnover, last 12 months | number |
| `reverseCharge` | B2B reverse charge applies | boolean |

## Sources

- [Federal Tax Authority - Federal Decree-Law No. 8 of 2017, Article 3 (5%)](https://tax.gov.ae/DataFolder/Files/Legislation/Federal%20Decree-Law%20No.%208%20of%202017%20and%20amendments%20-%20For%20Publishing.pdf) (checked 2026-10-05)
- [Federal Tax Authority - Cabinet Decision 52 of 2017, Articles 7-8 (AED 375,000 / 187,500)](https://tax.gov.ae/Datafolder/Files/Legislation/Executive%20Regulation%20of%20Federal%20Decree%20Law%20No%208%20of%202017%20-%20Publish%2017112022.pdf) (checked 2026-10-05)

## What this page claims

The Valem engine reproduces this model's formula through 6 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/uae/vat.json
- Compute by URL: https://valem.run/calculators/uae/vat.json?amount=100
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `uae/vat`)