VAT Calculator UAE
UAE VAT is a flat 5% — the calculator part is easy. The part people get wrong is which way to calculate (adding VAT vs extracting it from a total) and when a business must register.
Total including VAT
AED 0
Enter an amount.
| Net (excl. VAT) | — |
| VAT 5% | — |
| Gross (incl. VAT) | — |
The change coming to every VAT invoice: eInvoicing
The 5% has not moved since 2018. What is moving is how the invoice itself has to be issued. Under Ministerial Decision No. 244 of 2025 the UAE is rolling out a mandatory eInvoicing system covering business and government transactions in every direction — B2B, B2G, G2B and G2G; only sales to consumers (B2C) and purchases from them are outside it for now — on a decentralised five-corner model, where invoices pass between buyer and seller through an Accredited Service Provider (ASP) and the data reaches the FTA in near real time.
A PDF is not an eInvoice. The Ministry's definition is structured invoice data in the UAE XML standard (built on OpenPeppol); PDFs, Word files, images, scans and email attachments are explicitly excluded. Emailing an invoice, however neatly formatted, will not discharge the obligation once your phase starts.
| Who | Appoint an ASP by | eInvoicing live from |
|---|---|---|
| Pilot — selected taxpayers, voluntary | — | 1 July 2026 |
| Phase 1 — annual revenue above AED 50 million | 30 October 2026 (extended from 31 July 2026) | 1 January 2027 |
| Phase 2 — annual revenue below AED 50 million | 31 March 2027 | 1 July 2027 |
| Phase 3 — government entities | 31 March 2027 | 1 October 2027 |
Two practical notes for a small business. First, the deadline that binds you is the ASP appointment date, not the go-live date — Phase 2 businesses have until 31 March 2027 to have a provider contracted, and the Ministry publishes the accredited list — 54 providers as of 22 September 2026, with 8 more in final assessment. Second, the trigger is not VAT registration: Article 3 of Ministerial Decision No. 243 of 2025 applies the system to any person conducting business in the UAE, and the Ministry's guidelines say so in terms — "notwithstanding their VAT registration status". Third, joining voluntarily carries no penalty exposure until your own phase begins, which is worth considering if your customers are large enough to be in Phase 1: from January 2027 they will be exchanging structured invoices whether you are ready or not.
Nine guides go further: what a business under AED 50 million actually has to put in place — scope, the TIN you may need to register for, the single-ASP rule and the 100 free invoices a year every provider commits to — the penalties, where three of the six have no cap, the 51 mandatory fields that the invoice itself must carry, how to choose a provider once you know what accreditation already guarantees, where the invoice actually travels in the five-corner network, and the four cases where a credit note is compulsory. Two more go into the detail that decides whether a document validates: self-billing and the 24-month VAT-group grace period, and surcharges, foreign currency and the one place you may round.
Separately from eInvoicing, the VAT rulebook itself moves on 1 October 2026. Cabinet Decision No. 149 of 2026 amends twelve clauses of the Executive Regulation — a new block on recovering input tax where a large supply is paid in cash, employer-provided accommodation pulled out of the employee-benefit exception, free zones written in where "Designated Zone" used to sit, and an anti-splitting rule for bundled supplies. None of it touches the 5% or the thresholds. The nine that apply immediately, and the three held back to 2027, are here.
Frequently asked questions
When must a business register for VAT in the UAE?
Registration is mandatory once taxable supplies exceed AED 375,000 over the past 12 months (or expected 30 days), and voluntary from AED 187,500 — useful for reclaiming input VAT.
What's the difference between zero-rated and exempt?
Both charge 0% to the customer, but zero-rated businesses (exports, international transport, first supply of new residential property) can reclaim input VAT, while exempt ones (residential rent, bare land, local passenger transport, many financial services) cannot.
Is residential rent subject to VAT?
No — residential leases are exempt. Commercial rent and commercial property sales carry the standard 5%.
Can tourists reclaim VAT, and how much comes back?
Yes — through the tax-free shopping scheme at participating retailers, on a minimum spend of AED 250 (excl. VAT) per invoice, which cannot be reached by combining receipts from different shops. Two deductions apply: 13% of the VAT amount, plus a fixed AED 3.60 per tax-free transaction — so the tourist receives 87% of the VAT paid. The fixed fee was cut from AED 4.80 by FTA Decision No. 11 of 2026, effective 12 July 2026, and the older 85% / AED 4.80 figures are still circulating widely, including on some official pages that have not been refreshed. Transactions must be export-validated within 90 days of the invoice date, on departure. Cash refunds are capped at AED 35,000 and paid instantly; card refunds have no cap and land within nine days.
Do I have to issue eInvoices, and from when?
If your annual revenue exceeds AED 50 million, you must appoint an Accredited Service Provider by 30 October 2026 and be live by 1 January 2027. Below AED 50 million, the ASP deadline is 31 March 2027 and eInvoicing starts 1 July 2027; government entities go live 1 October 2027. The scope is B2B and B2G transactions, with a published list of exclusions; B2C is out of scope for now. Structured XML through an ASP is the only valid form — a PDF invoice is not an eInvoice.
How do I take VAT out of a total?
Divide the gross amount by 1.05 to get the net; the difference is the VAT. AED 1,050 gross → 1,000 net + 50 VAT. Multiplying the gross by 5% instead is the classic mistake — it overstates the VAT.
Sources
- VAT overview and thresholds — u.ae · Federal Tax Authority
- Tourist VAT refund — 13% administrative fee, AED 3.60 fixed fee, 90-day validation, AED 35,000 cash cap — FTA, VAT Refund for Tourists
- eInvoicing scope, phases and format — Ministry of Finance, eInvoicing · the two Ministerial Decisions on scope and timelines · the 10 May 2026 amendment extending the Phase 1 ASP deadline to 30 October 2026
Rules re-verified 22 September 2026. No drift in the numbers that matter: the 5% rate and the AED 375,000 / 187,500 registration thresholds stand (checked against the Federal Tax Authority's consolidated VAT Decree-Law), and the tourist refund is still 87% of the VAT after a 13% administrative fee and an AED 3.60 fixed fee per tag, on a minimum spend of AED 250 excl. VAT, validated within 90 days — all four re-read off the FTA's own service page this round. The AED 4.80 and 85% figures still circulating predate FTA Decision No. 11 of 2026 (effective 12 July 2026). One figure updated: the Ministry of Finance's accredited-provider list, last updated on 22 September 2026, now shows 54 ASPs plus 8 under final assessment — we counted the published tables rather than repeating a headline, because third-party trackers this month variously claimed 38, 51 and 60. The eInvoicing timetable is unchanged from the Ministry's announcements, including the 10 May 2026 amendment that moved the Phase 1 ASP appointment deadline from 31 July 2026 to 30 October 2026, with go-live still 1 January 2027.
Related tools
- UAE Corporate Tax Calculator — the other tax, on profit rather than sales.
- Business Setup Cost Calculator — before there's VAT, there's a license.
- Nine VAT rules change on 1 October 2026 — cash payments, employee accommodation, bundled supplies. The rate stays at 5%.
- Composite supply or multiple supplies — one price, components taxed differently, and who decides how it is split.
- The VAT you cannot reclaim — entertainment, company cars, staff benefits, and the payment condition behind every claim.
- eInvoicing below AED 50 million — scope, dates and the free-invoice allowance.
- eInvoicing penalties — the AED 1,000 a day that has no ceiling.
- The 51 fields and the 8 flags — what has to be on the invoice itself.
- Choosing an ASP — what the badge already covers, and the two-year renewal cliff.
- The five-corner model — your invoice reaches the FTA before it reaches your customer.
- Electronic credit notes — four compulsory cases and a 14-day clock.
- Self-billing and VAT groups — the intra-group grace period, and who may raise the document.
- Charges, currency and rounding — the money-side constraints most systems get wrong.