👉 How to Calculate VAT in UAE (5% Explained Simply)

What is VAT in the UAE?

Value Added Tax (VAT) in the UAE is set at 5% and applies to most goods and services. It was introduced in 2018 as part of the government’s revenue diversification strategy.

How to add VAT

To add VAT:

👉 Multiply the original price by 1.05

Example:
AED 100 → AED 105 (including VAT)

How to remove VAT

To remove VAT from a total price:

👉 Divide by 1.05

Example:
AED 105 → AED 100 (before VAT)

Why VAT matters

• Affects everyday purchases

• Important for businesses

• Helps with budgeting

Use our VAT calculator

Instead of calculating manually:

👉 Use our UAE VAT Calculator to instantly add or remove VAT from any amount.

Final thoughts

VAT is simple once you understand the formula — but using a calculator saves time and avoids mistakes.