VAT Calculator
Quick VAT calculations for GCC businesses
How to use this VAT calculator
- Pick the country you are invoicing in — UAE (5%), Saudi Arabia (15%) or Bahrain (10%). The rate and currency change with it.
- Choose Add VAT if your figure excludes VAT, or Remove VAT if your figure already includes it.
- Type the amount. The calculator updates as you type — there is no button to press.
- Read the three results: the net amount, the VAT amount, and the gross total.
It is free, works in the browser, and needs no sign-up or account.
How VAT is calculated in the UAE
The UAE standard VAT rate is 5%. Whether you are adding VAT to a price or pulling it back out of a total, it is the same two-line piece of arithmetic.
Adding 5% VAT to a net amount
Total (gross) = net × 1.05
Example: a net price of AED 1,000 carries AED 50 of VAT, giving a total of AED 1,050.
Removing 5% VAT from a VAT-inclusive total
VAT = gross − net (the same as gross × 5 ÷ 105)
Example: a VAT-inclusive total of AED 1,050 breaks down into AED 1,000 net and AED 50 VAT. The common mistake is taking 5% off the gross figure instead — that would give AED 52.50, which is wrong.
The same formulas work at any rate: use 1.15 and 15 ÷ 115 for Saudi Arabia, and 1.10 and 10 ÷ 110 for Bahrain.
VAT rates in the UAE, Saudi Arabia and Bahrain
| Country | Standard VAT rate | Current rate in force since |
|---|---|---|
| United Arab Emirates | 5% | 1 January 2018, when VAT was introduced |
| Saudi Arabia | 15% | 1 July 2020, raised from 5% |
| Bahrain | 10% | 1 January 2022, raised from 5% |
These are the standard rates. Not every supply is standard-rated: each country also has zero-rated and exempt categories, such as certain exports, healthcare, education and financial services, where a different treatment applies. Check the rules for your specific supply before you invoice.
When a UAE business must register for VAT
The UAE Federal Tax Authority sets two thresholds, and both can be triggered by looking backwards or forwards:
- Mandatory registration — AED 375,000. You must register if the total value of your taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or if you expect it to exceed that figure in the next 30 days.
- Voluntary registration — AED 187,500. You may choose to register if your taxable supplies and imports, or your taxable expenses, exceeded AED 187,500 over the previous 12 months, or are expected to in the next 30 days.
Once registered you are issued a Tax Registration Number (TRN), you charge 5% on standard-rated supplies, and you file your VAT return and pay the FTA within 28 days of the end of your tax period.
Sources: UAE Federal Tax Authority — Registration for VAT and Filing VAT returns and making payments; UAE Ministry of Finance — Value Added Tax. This page is general information, not tax advice.
Frequently asked questions
What is the VAT rate in the UAE?
The UAE standard VAT rate is 5%, introduced on 1 January 2018 and unchanged since. Some supplies are zero-rated or exempt rather than standard-rated, so 5% does not apply to absolutely everything.
How do I remove 5% VAT from a total?
Divide the VAT-inclusive total by 1.05 to get the net amount, then subtract that from the total to get the VAT. A total of AED 1,050 is AED 1,000 net plus AED 50 VAT. Do not take 5% off the gross figure — that gives the wrong answer.
How do I add 5% VAT to a price?
Multiply the net price by 0.05 to get the VAT, or by 1.05 to get the total directly. A net price of AED 1,000 becomes AED 1,050 including AED 50 of VAT.
When does a UAE business have to register for VAT?
Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed it within the next 30 days. Voluntary registration is available from AED 187,500 of taxable supplies, imports or expenses on the same backward or forward test.
What are the VAT rates in Saudi Arabia and Bahrain?
Saudi Arabia applies a 15% standard rate, in force since 1 July 2020 when it was raised from 5%. Bahrain applies 10%, in force since 1 January 2022, also raised from 5%. This calculator covers both alongside the UAE.
Is this VAT calculator free to use?
Yes. It is free, runs in your browser, and needs no sign-up, account or email address. It is provided by FT-Services, a Dubai software studio, as a public tool.
Related free tools
- Invoice generator — produce a PDF invoice with the 5% VAT already worked out, plus your logo, TRN, signature and stamp.
- Chart generator — turn a CSV or Excel export into a bar, line or pie chart you can download.
- All free business tools — the full set, with terms of use.
If you are reconciling VAT by hand every quarter, that is usually a systems problem rather than a maths problem. FT-Services builds accounting integrations for Odoo, QuickBooks, Tally and Zoho and order-to-invoice automation for UAE and GCC businesses, so tax and invoice data stays consistent without re-keying.