Free Tool · Updated 2026
UAE VAT Calculator
Quickly add or remove 5% UAE VAT from any amount. Get the net price, VAT amount and total instantly, with the correct formula explained below.
Want an exact number, not an estimate?
This calculator gives a strong planning estimate. For an exact, guaranteed figure, our engineers confirm everything during a free site survey.
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How UAE VAT calculation works
The UAE applies a standard Value Added Tax (VAT) rate of 5% on most goods and services, introduced in January 2018. VAT is calculated on the net (pre-tax) price of a product or service, and the total a customer pays is the net price plus 5% VAT. This calculator works in both directions: add 5% VAT to a net amount to get the total, or work backward from a VAT-inclusive total to find the original net amount and the VAT portion.
The VAT formulas used
- Adding VAT: Total = Net Amount × 1.05
- Removing VAT: Net Amount = Total ÷ 1.05, and VAT = Total − Net Amount
A common mistake is simply taking 5% off a VAT-inclusive total to "remove VAT" — this gives the wrong answer, because 5% of the total is not the same as the VAT that was added to the original net amount. Always divide by 1.05 to back out VAT correctly, not multiply by 0.95.
Who actually needs a VAT calculator
This tool is useful well beyond construction and ELV quotations: freelancers and small business owners pricing invoices, shoppers comparing VAT-inclusive vs VAT-exclusive prices, and anyone reconciling receipts where only one of the two figures (net or gross) is shown. If you're comparing quotations from different contractors, always confirm whether the quoted price already includes VAT, since a 5% difference on a large project (like a full villa CCTV or smart home installation) is a meaningful amount.
VAT on business invoices in the UAE
UAE-registered businesses above the mandatory VAT registration threshold must issue tax invoices showing the net amount, VAT amount, and total separately, along with their Tax Registration Number (TRN). When requesting quotations for installation services, always ask whether the figure quoted is VAT-inclusive, and confirm the contractor's TRN is shown on the final invoice.
Planning a project and need a VAT-clear quotation?
Every quotation we issue clearly separates the net amount, VAT, and total, so there's no ambiguity when comparing against other contractors.
Frequently asked questions
The standard UAE VAT rate is 5%, applied to most goods and services since January 2018, with some categories zero-rated or exempt.
Divide the VAT-inclusive total by 1.05 to find the net amount, then subtract the net amount from the total to find the VAT portion. Do not simply subtract 5% of the total, as this gives an incorrect result.
Yes, installation and maintenance services such as CCTV, smart home and networking installation are subject to the standard 5% VAT rate, which should be clearly shown on your quotation and invoice.
A quick estimate is to take 5% of the net amount, which is the same as dividing the net amount by 20. For example, AED 1,000 in VAT-exclusive price has AED 50 in VAT, for a total of AED 1,050.