UAE FTA Compliant (5%)
UAE VAT Calculator: Federal Tax Authority
Calculate United Arab Emirates Value Added Tax (VAT) in UAE Dirhams (AED). Accurately determine 5% standard tax on sales and purchases or extract VAT from retail invoices in compliance with UAE FTA regulations.
UAE 5% VAT Calculation
UAE FTA Compliant
Exclusive adds 5% on taxable value; Inclusive backs out tax from retail receipt.
AED
Standard (5%): Most goods/services | Zero-rated (0%): Exports, international transport | Exempt: Financial services, residential rent.
FTA Tax Invoice Breakdown
Taxable Amount (Base):
AED 5,000.00
VAT Rate Applied:
5%
VAT Payable to FTA:
AED 250.00
Total Invoice Value (Gross)
AED 5,250.00
UAE VAT Rules & Formulas
1. Adding 5% VAT (Exclusive)
Multiply base value by 0.05 to determine tax, then add to net price:
VAT Amount = Net Amount × 0.05
Gross Price = Net Amount × 1.05
2. Extracting 5% VAT (Inclusive)
Divide total invoice by 1.05 or multiply by 5/105 (~0.047619):
Net Amount = Total Invoice / 1.05
VAT Amount = Total Invoice − Net Amount
UAE VAT Frequently Asked Questions
What is the VAT registration threshold in UAE?
Mandatory registration threshold is AED 375,000 in taxable turnover over the prior 12 months. Businesses with turnover exceeding AED 187,500 can register voluntarily.
What are the mandatory fields on a UAE FTA Tax Invoice?
A compliant FTA Tax Invoice must display the heading "Tax Invoice", supplier name, address, and TRN (Tax Registration Number), date of issue, description of goods/services, unit price, quantity, total gross amount in AED, and explicit VAT breakdown.
Compliant UAE & GCC Invoicing Software
Generate bilingual tax invoices with TRN numbers, digital QR codes, and multi-currency billing in AED, SAR, and USD.
