The UAE VAT rate
The standard rate in the United Arab Emirates is 5%, in force since 1 January 2018, administered by the Federal Tax Authority. Zero-rated and exempt supplies also exist.
The FTA publishes a calculator on its own site with the fields "Amount Before Tax (AED)", "Total Amount After Tax (AED)" and "VAT 5% (AED)". We use the authority’s own terms here rather than a translation of them.
Removing 5% VAT from an inclusive amount
Divide the inclusive total by 1.05 to get the amount before VAT. Or directly: VAT = inclusive ÷ 21, which is a valid shortcut at 5% only, because 5 ÷ 105 = 1 ÷ 21.
Example: a receipt for AED 210 including VAT. 210 ÷ 21 = AED 10 of VAT, leaving AED 200 before VAT.
A warning about the "divide by 21" shortcut: it holds at 5% and nowhere else. With a custom rate, go back to the general formula — amount before VAT = total ÷ (1 + rate).
Adding 5% VAT to a price before tax
VAT = amount × 5%, and total = amount × 1.05. Example: AED 12,000 before VAT carries AED 600 of VAT for a total of AED 12,600.
Rounding to the nearest fils
The FTA’s public clarification on tax invoices explains that VAT is rounded to the nearest fils using normal mathematical rounding: AED 2.357 becomes 2.36 and 9.862 becomes 9.86.
The UAE dirham has 100 fils, so results here carry two decimals. The Bahraini dinar and Omani rial have a thousand minor units and carry three — a difference most online calculators ignore.
What this calculator does not do
It does not decide whether your transaction is standard-rated, zero-rated, exempt or out of scope. Residential rent, public transport and certain financial services all have their own treatment. Choose the rate that applies, and the tool will get the arithmetic right.
The calculator for each country
Each country has its own page, because the rate, the currency and the number of decimal places differ: the Bahraini dinar and the Omani rial carry three decimals, not two.
Frequently asked questions
What is the VAT rate in the UAE?
The standard rate is 5%, in force since 1 January 2018 and administered by the Federal Tax Authority.
How do I remove 5% VAT from a total?
Divide the inclusive total by 1.05, or divide it by 21 to get the VAT amount directly. AED 210 inclusive contains AED 10 of VAT.
Does the FTA calculator extract VAT as well?
The calculator on the FTA’s own site works forwards, from an amount before tax to the total after tax. Extracting VAT from an inclusive amount is what this tool adds — and it is the direction people search for most.
Is this tool affiliated with the Federal Tax Authority?
No. Fatorli is an independent tool, not a government service, and not certified by any tax authority.