Add or remove 5% VAT from a price.
VAT amount
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Net (excl. VAT)
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Gross (incl. VAT)
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Worked example
Suppose you invoice a client AED 1,000 for a service and need to add VAT. The UAE standard rate is 5%, so the VAT is 5% of AED 1,000, which is AED 50. The gross amount on the invoice becomes AED 1,050. Working the other way, if a price of AED 1,050 already includes VAT, you recover the net by dividing by 1.05, which gives AED 1,000, and the AED 50 difference is the VAT. The same 5% applies whether you are adding VAT to a net price or pulling it out of a VAT-inclusive total, so the two views always reconcile.
| Step | Amount |
|---|---|
| Net price | AED 1,000 |
| VAT at 5% | AED 50 |
| Gross price (incl. VAT) | AED 1,050 |
How it is calculated
UAE VAT is a single standard rate of 5%, introduced on 1 January 2018. To add VAT, you multiply the net price by 5% and add the result to the net to reach the gross. To extract VAT from a price that already includes it, you divide the gross by 1.05 to recover the net, and the gap between gross and net is the VAT. The arithmetic is the same in both directions, just rearranged. Certain supplies sit outside the standard rate: exports and some health and education services are zero-rated, while a few categories are exempt. This tool applies the 5% standard rate to the amount you enter.