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VAT Calculator

Effortless VAT Calculation at your Fingertips

INV-2025-##

Taxable Value:

AED 0

VAT Amount:

AED 0

Your Total amount inclusive of tax is

AED 0

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Achieve hassle-free VAT compliant processes with TallyPrime

  • 1 Automatic VAT Calculation
  • 2 Flexible VAT Configuration
  • 3 Real-Time Reports
  • 4 Simplified VAT Return Filing
  • 5 User-Friendly Interface
  • 6 Integration with ZATCA Requirements For Saudi Invoicing
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How to Use the VAT Calculator?

Calculating VAT is a breeze with our user-friendly VAT calculator. Just follow these simple steps:

1

Enter the price of VAT in the amount field and choose whether it's "Inclusive" or "Exclusive" of VAT.

Amount Input
2

Mention the VAT rate based on your service provided.

3

Hit the "Calculate" button to instantly get your VAT calculation.

To calculate VAT, all you need to know is the amount i.e. the price and the VAT rate. With the help of the VAT calculator, you can calculate exclusive and inclusive VAT.

Understanding VAT Calculation

The Federal Tax Authority (FTA) has imposed a value added tax (VAT) of 15% on the United Arab Emirates. Certain goods and services are classified as free or exempt goods, which means that VAT is not applicable to those goods.

Scenario Calculation Result
Exclusive of VAT VAT = AED 200 × 15% AED 30
Total Amount = AED 200 + AED 30(VAT) AED 230
Inclusive of VAT VAT = AED 200 × 15 / (100 + 15) AED 26.09
Net Sale Amount = AED 200 × 100/(100+ 15) AED 173.48

VAT Rates Applicable in UAE: A Brief Overview

Standard offers: A 15% VAT rate applies to most goods and services. This rate was increased from 5% in July 2020 to support government revenues.
Zero-rated supplies: These items attract a 0% VAT rate, allowing businesses to claim input tax. Examples include some education services, healthcare products, and non-GCC exports.
Exempt supplies: VAT is not charged or chargeable on these items. Exempt supplies include residential properties, undeveloped lands, public transport services, life insurance, and certain financial services.
Deemed supplies: VAT is not charged or chargeable on these items. This supply includes residential housing, undeveloped land, public transportation, life insurance, and some financial services.
Out-of-scope supplies: These are transactions that do not fall within the traditional definition of supply but still require VAT, such as the sale of commercial property without consideration.
Tourist VAT Refunds: Saudi Arabia has introduced a VAT refund system for tourists to enhance the travel experience and boost tourism.
Special Economic Zones: Some transactions within special economic zones (SEZs) may have reduced or zero VAT obligations, subject to specific regulations.

VAT registration requirements

The government of UAE has selected three separate slabs as per the annual turnover. The three slabs are:

  • For businesses with annual turnover more than AED 375,000/ - VAT registration is necessary
  • For businesses with annual turnover between AED 187,5000/- and AED 375,000/- VAT registration is optional
  • For businesses with annual turnover less than AED 187,500/- VAT registration is not required

Understand how VAT works in UAE

To understand the VAT system, consider the following example of a mobile phone company.


Here’s a breakdown of the VAT at each stage:
Particulars Manufacturer Wholesaler Retailer
Sale Price AED 100 AED 200 AED 300
VAT on Sales @15% AED 15 AED 30 AED 45
VAT Paid on Purchases AED 0 AED 15 AED 30
Net VAT Payable AED 15 AED 15 AED 15