Add 5% VAT to a net price, or work out the VAT included in a total, in UAE dirhams.
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How to calculate UAE VAT
| To | Do this | Example (AED 1,000) |
|---|---|---|
| Add VAT | Multiply by 1.05 | AED 1,050 |
| Find the VAT in a total | Divide by 21 | AED 1,050 ÷ 21 = AED 50 |
| Remove VAT | Divide by 1.05 | AED 1,050 ÷ 1.05 = AED 1,000 |
Zero-rated and exempt supplies
Zero-rated (0%) supplies include many exports, international transport, some healthcare and education, and the first supply of new residential property. Exempt supplies include most residential rent, local passenger transport, bare land and some financial services.
Registering for VAT
Businesses must register when taxable supplies and imports exceed AED 375,000 in the past 12 months or are expected to in the next 30 days. They can register voluntarily from AED 187,500.
Frequently asked questions
What is the VAT rate in the UAE?
5%, introduced on 1 January 2018.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.05.
Is rent subject to VAT in the UAE?
Residential rent is usually exempt; commercial rent is standard-rated at 5%.
When must a business register for VAT?
When taxable supplies exceed AED 375,000 in 12 months.
Sources
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