Bookkeeping · Close · Tax Small businesses, startups & ecommerce Updated September 2026

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UAE VAT calculator: add or remove 5% VAT in AED.

Excello's free UAE VAT calculator adds or removes the standard 5% VAT on any amount in AED, shows the formula behind it and estimates late payment penalties.

It gives estimates for planning. Rates were last checked on 17 September 2026 against the UAE Ministry of Finance and the Federal Tax Authority.

Free. No sign-up. Amounts in AED.

A city skyline behind a receipt An ink drawing of city towers and a tall spire at dusk, with a receipt in front whose tax line is highlighted.


UAE VAT calculator online

Try it

Choose whether to add or remove VAT, enter an amount, and the results update as you type. The second panel works as a UAE VAT late payment penalty calculator.

Add or remove VAT

Calculation
Net amount
AED 1,000.00
VAT at 5%
AED 50.00
Gross amount
AED 1,050.00

Example: AED 1,000 before VAT.

Late payment penalty estimate

Estimated penalty
AED 151.67

14% a year, charged for each month or part of a month since 14 April 2026.

How to calculate VAT in UAE: the formula

The formula

UAE VAT is charged at 5% of the net price. The UAE VAT calculation formula works in both directions: multiply by 1.05 to add VAT, or divide by 1.05 to take it out.

A common mistake is taking 5% off a price that already includes VAT. That understates the VAT; the VAT inside a gross price is 5/105 of it, not 5%.

Add VAT: multiply by 1.05. Remove VAT: divide by 1.05.
UAE VAT formulas with worked examples
To do thisFormulaExample
Add VAT to a net priceVAT = net × 5%; gross = net × 1.05AED 1,000 + AED 50 = AED 1,050
Remove VAT from a gross priceNet = gross ÷ 1.05AED 1,050 ÷ 1.05 = AED 1,000
Find the VAT inside a gross priceVAT = gross × 5 ÷ 105AED 1,050 × 5 ÷ 105 = AED 50
Work out VAT payableOutput VAT on sales − recoverable input VAT on purchasesAED 12,500 − AED 6,000 = AED 6,500

UAE VAT calculation in Excel, and a free download

The workbook

The same sums take one formula each in a spreadsheet, as the table below shows with the amount in cell A2.

The free Excel download does all of this for you, plus a simple return summary and a penalty estimate.

Excel formulas for UAE VAT
ResultFormula
VAT on a net amount in A2=A2*5%
Gross amount from a net amount=A2*1.05
Net amount from a gross amount=A2/1.05
VAT inside a gross amount=A2-A2/1.05

Registration thresholds and late payment penalties

The rules

UAE VAT thresholds and penalties
RuleAmountWhat it means
Mandatory registrationAbove AED 375,000Taxable supplies and imports above this must register
Voluntary registrationAbove AED 187,500Businesses above this may choose to register
Late payment14% per annumCharged monthly on unpaid tax, for each month or part of a month
Late returnAED 1,000, then AED 2,000AED 2,000 applies if it happens again within 24 months

Example: AED 6,500 of VAT paid two months late gives an estimated penalty of AED 151.67: AED 6,500 × 14% ÷ 12 × 2.

Source: UAE Ministry of Finance, VAT; Federal Tax Authority, Cabinet Decision No. 40 of 2017 as amended by No. 129 of 2025. Last checked 17 September 2026.

VAT figures ready when the return is due

Where Excello fits

Excello keeps your books current all year inside your own QuickBooks, Xero or Odoo, with sales and purchases coded and reconciled, so your VAT figures are ready when each return is due. Books close within five business days of month-end as standard.

Excello also prepares the VAT return itself, the registration when you cross the threshold, and a voluntary disclosure if an earlier return needs correcting. UAE tax services.

Frequently asked questions

How do I calculate 5% VAT in the UAE?

Multiply the net amount by 0.05 to get the VAT, or by 1.05 to get the total including VAT. On AED 1,000, the VAT is AED 50 and the total is AED 1,050.

What is the VAT rate in the UAE?

The standard VAT rate in the UAE is 5%, in place since VAT was introduced on 1 January 2018. Some supplies are zero-rated or exempt, so check how each of your sales is treated.

How do I remove VAT from a price in the UAE?

Divide the price including VAT by 1.05 to find the net amount, then subtract that from the price to find the VAT. AED 1,050 divided by 1.05 is AED 1,000, so the VAT inside it is AED 50.

When must a business register for VAT in the UAE?

Registration is mandatory when taxable supplies and imports exceed AED 375,000, according to the UAE Ministry of Finance. A business can register voluntarily once they exceed AED 187,500.

What is the penalty for late VAT payment in the UAE?

Unpaid VAT attracts a penalty of 14% per annum, charged monthly for each month or part of a month after the due date. The rule applies from 14 April 2026 under Cabinet Decision No. 129 of 2025.

Is this UAE VAT calculator free?

Yes. The calculator and the Excel version are free, with no sign-up. They give estimates for planning; VAT returns and payments are made through the Federal Tax Authority's EmaraTax portal.

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  • Sales and purchases coded all year
  • Books in AED or any base currency
  • Books closed within five business days as standard

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