UAE VAT calculator (5%)
Add or strip 5% VAT the correct way — divide by 1.05, never subtract 5%.
The one rule people get wrong
To strip VAT from an inclusive figure, divide by 1.05 — never subtract 5%. The difference compounds across thousands of transactions and quietly distorts your sales, VAT return and food cost percentage.
- Inclusive → Net: amount ÷ 1.05
- Net → VAT: net × 5%
- Exclusive → Gross: amount × 1.05
FAQs
How do I remove VAT from a price?
Divide the VAT-inclusive amount by 1.05. Subtracting 5% instead is a common error that understates the net figure — on AED 105 the VAT is AED 5, not AED 5.25.
When do I add VAT to a price?
When quoting VAT-exclusive prices to VAT-registered customers, add 5% on top. Consumer-facing prices in the UAE must generally be displayed VAT-inclusive.
Which supplies are not 5%?
Some supplies are zero-rated (e.g. exports, first supply of new residential property) and some exempt (e.g. residential rent, certain financial services). This calculator assumes the standard 5% rate.
Numbers raising questions?
These tools give estimates. We give answers — free first consultation, fixed fees after.