fbpx

VAT Calculator UAE

UAE Vat Calculator

Enter Amount in AED
VAT Rate (%)

VAT Calculation Results :

VAT Amount in AED
Amount in AED

Got Question on VAT in UAE? Let us know!

?

Online VAT Calculator

This VAT Calculator UAE is a user-friendly tool designed by Bestax, who also offer VAT consultancy services in Dubai. This tool simplifies VAT calculations, making it easier for businesses to comply with UAE VAT regulations. Our calculator provides two options: add VAT to or subtract VAT from your amounts, ensuring you get the correct VAT value every time.

VAT in UAE

VAT was introduced in the UAE on January 1, 2018. Since then, all businesses must calculate VAT accurately and submit the correct tax amount to the government. Our online VAT calculator makes this task effortless by automating the process, helping you stay compliant with UAE VAT laws.

Registering for VAT

Businesses must register for VAT if their taxable supplies or imports exceed certain thresholds.

Threshold

Registration Type

Details

Above AED 375,000

Mandatory

Must register for VAT.

AED 187,500 – AED 375,000

Voluntary

Can register voluntarily. Suitable for smaller businesses and startups.

Expenses above AED 187,500

Voluntary

Startups with no turnover can register to reclaim VAT on expenses.

For more information about VAT Registration, click here.

VAT Obligations for Registered Businesses

VAT-registered businesses in the UAE are required to:

  • Charge VAT on all taxable goods and services.
  • Reclaim VAT paid on business-related expenses.
  • Maintain Business Records to ensure compliance and facilitate government checks.

You must report the VAT you’ve charged and paid to the government regularly, typically through online submissions. If you’ve charged more VAT than you’ve paid, you’ll pay the difference to the government. Conversely, if you’ve paid more VAT than you’ve charged, you can reclaim the VAT Refund.

Understanding Your VAT Calculator Results

  • VAT Amount: This is the 5% VAT Amount calculated based on your input amount
  • Total Amount: This is the final amount, including or excluding VAT as per your desired calculation. 

Example Calculations

Calculation Type

Formula

Example

Adding VAT

Total Price = Net Price × (1 + VAT Rate)

AED 100 × 1.05 = AED 105

Excluding VAT

Net Price = Gross Price / (1 + VAT Rate)

AED 105 / 1.05 = AED 100


Zero-Rated Sectors

In some cases, VAT is charged at 0%. This applies to specific sectors:

Sector

Description

Exports

Goods and services sent outside the GCC.

International Transportation

Includes related supplies.

Certain Transport Vehicles

Aircraft, ships, and similar transportation means.

Precious Metals

Investment-grade metals like gold and silver (99% purity).

New Residential Properties

Supplied within three years of completion.

Education and Healthcare Services

Includes certain education and healthcare goods and services.

VAT-Exempt Sectors

Some sectors are completely exempt from VAT:

Sector

Description

Financial Services

Certain financial services as specified by VAT legislation.

Residential Properties

Sale or lease of residential properties.

Bare Land

Sale of undeveloped land.

Local Transport

Local passenger transportation services.

Partial Exemption

If a VAT-registered business incurs input tax on its expenses, this tax can be fully recovered if the expenses relate to a taxable supply i.e Standard Rated or Zero Rated. However, if the expenses relate to a non-taxable supply (like exempt supplies), the input tax cannot be recovered.

When expenses relate to both taxable and non-taxable supplies (such as in the banking industry), the business must apportion the input tax between the two. The ratio of recoverable input tax to total input tax should be used as the basis for this apportionment, but other fair methods may be used if agreed upon with the Federal Tax Authority.

Connect with Experts at Bestax 

Understanding VAT can be challenging. Our experts are here to help you with accurate VAT calculations and compliance to avoid penalties. We at Bestax are dedicated to collaborating with our clients and informing you of the latest updates and best practices. We serve clients across Dubai, UAE, Bahrain, Sharjah, Abu Dhabi, and the Middle East.

Our Services:

  • VAT Consultancy
  • VAT Registration
  • VAT Deregistration 
  • VAT Return Filing
  • VAT Refund 

If you have any questions or need assistance, please don’t hesitate to reach out to us. Partner with Bestax for expert tax solutions that drive your business forward. Contact us today!

Get Free Consultation

Get Free Consultation

Get Free Consultation

Get Free Consultation

Get Free Consultation

Get a Quote

?
?
?

UAE Business Setup Cost Calculator