The UAE charges 5% VAT on most goods and services. Whether you are pricing products, checking an invoice, or preparing a quote, a quick VAT calculation avoids costly mistakes.
The 5% math (memorize this)
Exclusive → gross: gross = net × 1.05 (AED 100 + VAT = AED 105). Inclusive → net: net = gross ÷ 1.05 (AED 105 includes AED 5 VAT). The calculator below does both directions instantly, with any custom rate.
Common mistakes
Adding 5% on top of a price that already includes VAT (double-charging), and forgetting that some categories are zero-rated or exempt — always confirm with the Federal Tax Authority guidance or your accountant for edge cases.
Examples
Freelancer quoting AED 2,000 + VAT → invoice AED 2,100. Shop shelf price AED 52.50 inclusive → net AED 50.00, VAT AED 2.50.
FAQ
What is the UAE VAT rate? A flat 5% since January 2018.
Inclusive vs exclusive? Exclusive adds VAT on top; inclusive extracts VAT already inside the price.