VAT Calculator UAE — 2025

Add or remove VAT from any price quickly. For UAE. Uses current 2025 data.

Also available for:

🌍 Universal 🇬🇧 United Kingdom 🇿🇦 South Africa 🇵🇭 Philippines

Amount

AED

The price you want to work with

VAT rate (%)

UK: 20%. UAE: 5%. South Africa: 15.5% (May 2025). Philippines: 12%.

Add VAT (1) or Remove VAT (2)

1: Net price → VAT-inclusive. 2: VAT-inclusive → Net price

VAT in the UAE — Registration, Returns, and Free Zone Treatment

## UAE VAT basics The UAE introduced VAT on January 1, 2018 as part of GCC-wide harmonisation. **Standard rate:** 5% (one of the lowest VAT rates globally) **Zero-rated:** Healthcare, education, international transport, exports, new buildings **Exempt:** Financial services (most), bare land, residential properties ## Registration thresholds - **Mandatory:** Annual taxable supplies > AED 375,000 - **Voluntary:** Annual taxable supplies > AED 187,500 (useful if you have significant input VAT to recover) ## Free zones and VAT Not all UAE free zones are VAT "designated zones." Designated zones are treated as outside the UAE for VAT purposes — goods can move between designated zones without VAT. However, services between businesses in designated zones are still subject to normal VAT rules. ## Filing with the FTA VAT returns are filed quarterly (or monthly for large taxpayers) through the Federal Tax Authority (FTA) eDirham portal. Due date: 28th of the month following the quarter end.

Common questions — UAE

What is the standard VAT rate in the UK?

UK standard VAT rate: 20%. Reduced rate: 5% (home energy, children's car seats, some social housing). Zero rate: 0% (most food, children's clothing, books, public transport, prescription drugs). Exempt (no VAT charged or recoverable): financial services, insurance, medical services, education.

What is the VAT rate in the UAE?

UAE introduced VAT at 5% on January 1, 2018. Zero-rated: education, healthcare, international transport, certain food items. Exempt: financial services, bare land, residential property (first supply). Businesses with annual turnover above AED 375,000 must register.

What changed in South Africa's VAT rate in 2025?

South Africa's VAT rate increased to 15.5% on May 1, 2025, up from 15% (which had been unchanged since 1993). This was a phased increase — the rate was set to reach 16% by April 2026 under the budget proposals.

Can businesses reclaim VAT?

VAT-registered businesses can reclaim the VAT they pay on business purchases (input tax) against the VAT they charge on sales (output tax). Only the net difference is paid to HMRC (UK) or relevant authority. Consumers (end users) cannot reclaim VAT.

What is the difference between VAT and sales tax?

VAT is collected at each stage of production/distribution (value added at each step), with businesses reclaiming input tax. Sales tax is collected only at the final point of sale to the consumer. VAT is more common globally; sales tax is predominantly used in the US.

VAT Calculator UAE — 2025

VAT in the UAE — Registration, Returns, and Free Zone Treatment

Common questions — UAE

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