How UAE VAT works
The standard VAT rate in the UAE is 5%, in force since 1 January 2018.
Add VAT: gross = net × 1.05 Remove VAT: net = gross ÷ 1.05, VAT = gross − netSome supplies are zero-rated (for example most international transport and certain education and healthcare) or exempt (for example local passenger transport and bare land). Businesses must register once taxable supplies exceed AED 375,000 a year.
Questions
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.05. For AED 105 that gives AED 100 net and AED 5 VAT.
What is the VAT registration threshold?
Mandatory registration applies once taxable supplies exceed AED 375,000 in 12 months. Voluntary registration is possible from AED 187,500.
Sources: Federal Tax Authority: VAT