VAT calculator & threshold checker
Add or strip 5% VAT the right way — and find out whether your last twelve months have pushed you over the registration threshold.
Add or remove VAT
Do you have to register for VAT?
Enter your taxable supplies and imports over the last 12 months, and what you expect in the next 30 days.
The thresholds
| Test | Threshold | Effect |
|---|---|---|
| Mandatory registration | AED 375,000 | Taxable supplies and imports over the previous 12 months, or expected within the next 30 days |
| Voluntary registration | AED 187,500 | Taxable supplies or taxable expenses — useful where input tax on costs is significant |
Zero-rated supplies count as taxable supplies, so a business making qualifying exports and charging no VAT to anyone can still be required to register. The 12-month test is rolling, which catches growing businesses mid-year — monitor it monthly rather than checking annually. See VAT services.
Prices advertised to consumers in the UAE must be VAT-inclusive, so the shelf price, menu price and signage are what the customer pays. If you are pricing a consumer product, use the "including VAT" direction above to work back to your net revenue.
Reviewed 18 August 2026 by Ahmed Nabil Selim. UAE tax rates, thresholds and deadlines change — confirm the position for your period before relying on it.
UAE VAT Calculator — frequently asked questions
To add VAT, multiply the net amount by 1.05 — AED 1,000 becomes AED 1,050, of which AED 50 is VAT. To strip VAT from a VAT-inclusive price, divide by 1.05 rather than taking 5% off: AED 1,050 inclusive is AED 1,000 net and AED 50 VAT. Taking 5% off the gross figure is the most common arithmetic error in UAE retail pricing and understates the net by a small amount every time.
Mandatory registration applies where taxable supplies and imports exceeded AED 375,000 over the previous twelve months, or are expected to exceed it within the next thirty days. Voluntary registration is available where taxable supplies or taxable expenses exceed AED 187,500. Zero-rated supplies count towards both, so exporters charging no VAT can still be required to register.
Often yes, if you incur significant input tax on UAE costs and your customers are VAT-registered businesses who can recover what you charge them. Registration lets you recover VAT on rent, professional fees, equipment and supplies. It is usually a poor idea where your customers are consumers who cannot recover VAT, because you either absorb the 5% or raise your prices. The calculation is specific to your customer mix and cost base.
Want the real number, not the estimate?
A calculator works from the figures you type in. We work from your actual records, your licence and your contracts — and tell you what to do about the answer.
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