United Arab Emirates VAT Calculator
How Much Is VAT in the United Arab Emirates?
The standard VAT rate in the United Arab Emirates is 5% in 2026. Other rates: 0% — Exports, international transport, certain education and healthcare, first supply of new residential buildings, crude oil and natural gas, investment precious metals. Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate United Arab Emirates VAT
To add 5% VAT to a net (tax-exclusive) price, multiply it by 1.05. To remove VAT from a gross (tax-inclusive) price, divide it by 1.05.
- Add VAT: AED 100 net × 1.05 = AED 105 gross (that is AED 5 of VAT)
- Remove VAT: AED 105 gross ÷ 1.05 = AED 100 net (that is AED 5 of VAT)
Use the United Arab Emirates VAT calculator above for any amount, or compare the United Arab Emirates with every other country in our VAT rates by country table.
United Arab Emirates VAT Rates Overview
Every VAT rate currently in force in the United Arab Emirates
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 5% | Most goods and services, including food, hotels and commercial property |
| Zero rate | 0% | Exports, international transport, certain education and healthcare, first supply of new residential buildings, crude oil and natural gas, investment precious metals |
VAT History and Local Rules in the United Arab Emirates
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: VAT law amendments (Federal Decree-Law No. 16 of 2025) effective 1 January: no self-invoicing under reverse charge and a five-year limit on refund claims
- 2026: Voluntary e-invoicing pilot opened on 1 July 2026 ahead of mandatory phases from 2027
- 2018: VAT introduced at 5% on 1 January 2018 under the GCC VAT framework
Is the VAT rate the same everywhere in the United Arab Emirates?
The same 5% rate applies in all seven emirates. Designated Zones are treated as outside the UAE for certain supplies of goods between them, while services and supplies to consumers there are normally taxed.
Good to know
VAT is charged at the same 5% rate in all seven emirates. Designated Zones (specified free zones with customs controls) are treated as outside the UAE for certain supplies of goods, but services supplied in them are generally subject to normal VAT.
From 1 January 2026, businesses applying the reverse charge no longer need to issue self-invoices, and excess refundable VAT must be claimed within five years; transitional relief allows older credits to be claimed until 31 December 2026.
Businesses that miss the e-invoicing deadlines face penalties of AED 5,000 per month for failure to appoint an accredited service provider and implement the system.
Zero-Rated and Exempt Supplies in the United Arab Emirates
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods and services outside the GCC implementing states
- International transport of passengers and goods
- Qualifying education services and related goods
- Qualifying preventive and basic healthcare services
- First supply of residential buildings within three years of completion
- Crude oil and natural gas
- Investment-grade gold, silver and platinum
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Certain financial services (e.g. interest-based lending, life insurance)
- Residential property leases and subsequent sales
- Bare land
- Local passenger transport
United Arab Emirates VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in the United Arab Emirates.
| Local name | Value Added Tax (VAT) |
|---|---|
| VAT number format | Tax Registration Number (TRN): 15 digits, starting with 100 |
| Registration threshold | Mandatory above AED 375,000 of taxable supplies and imports in 12 months; voluntary above AED 187,500 |
| Non-resident businesses | Non-resident businesses with no place of establishment in the UAE must register from the first taxable supply where no one else is liable to account for VAT (no threshold) |
| Filing frequency | Quarterly for most businesses; monthly for large businesses (turnover of AED 150 million or more) or as assigned by the FTA |
| Filing and payment deadline | 28 days after the end of the tax period |
| E-invoicing / reporting | Mandatory B2B and B2G e-invoicing phased in: businesses with revenue of AED 50 million or more from 1 January 2027 (service provider appointed by 30 Oct 2026), others from 1 July 2027, government entities from 1 October 2027 |
| Tax authority | Federal Tax Authority (FTA) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Federal Tax Authority (FTA) before relying on them.
Cross-Border Sales and Refunds in the United Arab Emirates
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Non-resident suppliers of electronic services to UAE consumers must register for VAT from the first sale with no threshold and charge 5%; B2B imported services are taxed under reverse charge.
Tourist VAT refunds: Yes: tourists can claim VAT back on goods bought at participating retailers with a minimum purchase of AED 250 through the Planet tax-free system at airports and borders, minus an administrative fee.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇮🇱 Israel
Standard Rate: 18%
🇸🇦 Saudi Arabia
Standard Rate: 15%
Frequently Asked Questions
Common questions about VAT in the United Arab Emirates
What is the current VAT rate in the United Arab Emirates?
The standard VAT rate in the United Arab Emirates is 5% in 2026. Other rates in force: 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in the United Arab Emirates?
To add 5% VAT, multiply the net price by 1.05. To remove it from a VAT-inclusive price, divide by 1.05; the difference is the VAT. The calculator at the top of this page does both.
What is the VAT rate in the UAE in 2026?
The UAE VAT rate is 5%, unchanged since its introduction on 1 January 2018. Certain supplies such as exports, qualifying education and healthcare and the first sale of new homes are zero-rated.
When does e-invoicing become mandatory in the UAE?
A voluntary pilot started on 1 July 2026. Businesses with revenue of AED 50 million or more must e-invoice from 1 January 2027, other businesses from 1 July 2027, and government entities from 1 October 2027.
Can tourists get a VAT refund in the UAE?
Yes. Tourists can reclaim VAT on purchases of at least AED 250 from participating stores through the Planet tax-free system at airports and land and sea ports, less an administrative fee.
Who needs to register for VAT in the United Arab Emirates?
Registration threshold: Mandatory above AED 375,000 of taxable supplies and imports in 12 months; voluntary above AED 187,500. Foreign businesses: Non-resident businesses with no place of establishment in the UAE must register from the first taxable supply where no one else is liable to account for VAT (no threshold).
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.