United Arab Emirates VAT Calculator 2026
United Arab Emirates applies a single VAT rate of 5% to all taxable supplies.
Figures last reviewed
United Arab Emirates VAT at a glance
- Standard VAT rate
- 5% — ranked 36 of 36 covered here
- Compared with the average
- -11.99 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 375,000 AED — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How VAT works in United Arab Emirates
VAT 5%, Registration threshold AED 375,000
Calculating United Arab Emirates VAT
Start from the price excluding tax
VAT is charged on the net price. At 5%, a net AED 100 becomes AED 105.00 once VAT of AED 5.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.0500, not subtracting 5%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Registration is threshold-based
Businesses with taxable turnover above AED 375,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 5%
Adding and removing VAT at 5%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | AED 100.00 | AED 1,000.00 |
| VAT at 5% | (AED 5.00) | (AED 47.62) |
| Result | AED 105.00 | AED 952.38 |
So a net price of AED 100.00 in United Arab Emirates costs AED 105.00 once VAT is added. Working the other way, a gross price of AED 1,000.00 contains AED 47.62 of VAT, leaving AED 952.38 net.
Computed from the same 5% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
United Arab Emirates VAT questions
What is the VAT rate in United Arab Emirates?
The standard rate is 5%, and it applies to all taxable supplies — United Arab Emirates has no reduced rate. That places United Arab Emirates 36 of 36 of the countries covered here, 11.99 points below the 16.99% average.
How do I remove VAT from a price in United Arab Emirates?
Divide the gross amount by 1.0500. At 5%, a gross AED 1,000 works back to AED 952.38 net with AED 47.62 of VAT. Subtracting 5% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in United Arab Emirates?
Once taxable turnover passes AED 375,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than United Arab Emirates?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. United Arab Emirates sits at 5%.