What is the VAT registration threshold for UAE businesses?

Mandatory registration threshold is taxable supplies exceeding AED 375,000 over the past 12 months. Voluntary threshold is AED 187,500.

Money & Finance

Updated: November 2026

UAE VAT Calculator

Calculate 5% Value Added Tax (VAT) for inclusive or exclusive amounts according to Federal Tax Authority (FTA) regulations.

Calculation Method

Pre-Tax Base Amount (VAT Exclusive) in AED

AED

FTA Standard: Standard VAT rate across the UAE is exactly 5.0%.

Formula used: VAT = Net × 0.05; Gross = Net + VAT.

Federal Tax Authority 5% Standard

VAT Component (5%)

AED 50.00

Net Amount (Excl. VAT):AED 1000.00

Value Added Tax (5%):AED 50.00

Gross Total (Incl. VAT):AED 1050.00

Federal Decree-Law No. 8 of 2017

Calculation Methodology & Legal Basis

Under UAE Federal Decree-Law No. 8 of 2017 on Value Added Tax, the standard rate of VAT is 5%. Exclusive formula: VAT = Amount × 0.05, Total = Amount × 1.05. Inclusive formula: Base Amount = Gross / 1.05, VAT = Gross - Base Amount.

Worked Example

For an exclusive amount of AED 1,000, VAT (5%) is AED 50, Total is AED 1,050. For an inclusive price of AED 1,050, the pre-tax base is AED 1,000 and the VAT component is AED 50.

Official Government & Regulatory Sources

Federal Tax Authority (FTA) — Official UAE VAT Legislation and Tax GuidesVisit Official Portal