Welcome to our Online VAT Calculator for Dubai Businesses. As the UAE changes, it’s important to get VAT right. Our easy to use calculator helps you calculate VAT fast and make informed decisions.
VAT Calculator UAE
Online Vat calculator Dubai- UAE
VAT Calculator Dubai is an online tool to Calculate VAT in UAE 2025 Easily. Calculate VAT in UAE now!
Welcome to VAT Calculator Dubai, a tool to help you calculate Value Added Tax (VAT) for your UAE transactions. Whether you are a business owner, accountant or individual buyer. Our easy to use calculator makes VAT calculation easy and compliant with UAE tax laws.
HOW TO USE Online VAT CALCULATOR!
The VAT Calculator Dubai is a helpful tool designed to assist you in calculating the Value Added Tax (VAT) for your transactions in the United Arab Emirates (UAE) in just three simple steps. Whether you are a business owner, an accountant, or an individual making purchases, our user-friendly calculator simplifies determining VAT amounts, ensuring compliance with the UAE’s tax regulations and saving time.
1. Enter the Amount
Type the transaction amount AED in the designated field (first Box). This could be the price of goods or services before VAT is applied.
2. VAT Rate (5%)
Input the applicable VAT rate the UAE government prescribes for your transaction. The standard VAT rate in the UAE is 5%, but some goods and services might attract a different rate, such as 0% or exemptions.
3. Calculate VAT
Click the “Calculate VAT” button to generate instant results.
Estimated Cost: 0.00 AED
Supply:
- Unlimited
Tools:
- Financial Education
Materials: Online
What is VAT?
VAT is a consumption tax applied to the value added to goods and services at each stage of the supply chain. It is paid by the end consumer and collected by businesses on behalf of the government.
Why is VAT important in UAE?
VAT was introduced in UAE on 1st Jan 2018 as part of the country’s efforts to diversify its revenue sources. It funds public services and infrastructure development.
Exempted Goods and Services in UAE
Some essential goods and services like healthcare, education and local transport are exempted from VAT in UAE. But please check with the government for any changes in exemptions.
VAT for what?
DEPENDING ON GOVERNMENT POLICIES AND ECONOMIC CONSIDERATIONS, the UAE may apply specific VAT rates (e.g., 0%-5%) to certain goods or services.
How to Register for VAT in UAE?
If your business meets the threshold, you need to register with the “UAE’s Federal Tax Authority (FTA)”. Registration is done online through the FTA’s website.
VAT in UAE: Exclusive and Inclusive VAT
Exclusive of VAT:
When you see “Exclusive of VAT” it means the amount or price you enter is the actual cost of the product or service without the Value Added Tax.
This VAT rate will be applied using the following formula:
Taxable Value = (Rate of VAT 5%)/ 100
Inclusive of VAT:
On the other hand “Inclusive of VAT” means the amount or price quoted already includes the Value Added Tax. In other words it includes the product cost and the VAT amount. If the price is inclusive of VAT you can calculate the VAT amount using the following formulas:
VAT Amount = (Value inclusive of tax X tax rate) / (100 + tax rate)
Taxable Value/Price = (Value inclusive of tax X 100) / (100 + tax rate)
Input VAT and Output VAT:
VAT is based on the concept of Input VAT and Output VAT. Let’s break it down with examples:
Output VAT:
Output VAT is the tax collected on the sale of goods or services. For example, if A-One Traders sells goods worth 1,00,000 AED with 5% tax, the 5,000 AED tax collected by A-One Traders is Output VAT.
Input VAT:
Input VAT is the tax paid on the purchase of goods or services. For example if A-One Traders buys goods worth 100,000 AED with 5% tax from Jumbo Distributors, the 5,000 AED tax paid by A-One Traders is Input VAT.
VAT Payments:
Registered businesses pay VAT but don’t have to pay the full VAT collected on sales. To calculate VAT payment use this formula:
**VAT Payment** = Output VAT – Input VAT
To get the VAT payable, calculate the total output VAT for the period and total input VAT eligible for reclaim. If the output VAT is more than input VAT then the difference is the VAT payable. If output VAT is less than the input VAT then you will get a refund and no VAT will be payable.
VAT Registration Criteria:
The UAE government has set different slabs based on annual turnover for VAT registration:
- VAT registration is compulsory for businesses with an annual turnover above AED 375,000.
- VAT registration is voluntary for businesses with an annual turnover between AED 187,500 and AED 375,000.
- VAT registration is not required for businesses with an annual turnover below AED 187,500.
Automate VAT Calculations with “How UAE” Dubai VAT calculator: To streamline your VAT calculations and automate generating VAT payable, consider using Howuae.
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