VAT calculator for the United Arab Emirates
The standard VAT rate in the United Arab Emirates is 5%. To remove it from a gross price you divide by 1.0500, which is not the same as taking 5% off.
%
Price including VAT
105.00
- VAT to add
- 5.00
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 5.00
- Line total for the quantity
- 105.00
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.047 619
- Gross-up multiplier
- 1.050 000
- How far the subtraction method goes wrong
- 0.25
Show the working
- Price excluding VAT = 100
- VAT rate = 5
- Price including VAT = 105
- Quantity = 1
- VAT to add = 100 * 5 / 100 = 5
- Price including VAT = 100 + 5 = 105
- Line total for the quantity = 105 * 1 = 105
- Net price behind a gross one = 105 / (1 + 5/100) = 100
- VAT inside a gross price = 105 - 100 = 5
- VAT fraction of a gross price = (1 + 5/100) > 0 ? (5/100) / (1 + 5/100) : 0 = 0.047 619
- Gross-up multiplier = 1 + 5/100 = 1.05
- wrong_way = 105 * (1 - 5/100) = 99.75
- How far the subtraction method goes wrong = 100 - 99.75 = 0.25
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.047619
The VAT fraction is the shortcut accountants use: at 5% you multiply a gross figure by 0.047619 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
Frequently asked
What is the VAT rate in the United Arab Emirates?
The standard rate is 5%.
How do I remove VAT from a price?
Divide by 1.0500. Subtracting 5% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.