UAE VAT (ضريبة القيمة المضافة) Guide & Calculator
Calculate VAT in the United Arab Emirates with our simple tool. The Arabic name for VAT is ضريبة القيمة المضافة. This calculator helps you determine gross or net amounts for the UAE's VAT rates.
Current VAT Rates in the UAE
The United Arab Emirates has a relatively simple VAT system with two main rates:
- Standard Rate (5%): This is the default rate and applies to most goods and services supplied in the UAE.
- Zero Rate (0%): The 0% rate is applied to specific categories of supplies, including exports of goods and services outside the GCC, international transportation, certain precious metals, and the first supply of new residential buildings. It also applies to certain educational and healthcare services.
Additionally, some sectors are considered exempt from VAT, such as certain financial services and the supply of residential buildings other than the first supply.
History of VAT in the UAE
Value Added Tax is a recent development in the UAE and the wider GCC region. It was introduced on January 1, 2018, as part of a landmark GCC agreement to diversify government revenue sources and reduce dependence on oil income. The standard rate was set at 5% upon introduction and has remained unchanged since.
| Period | Standard Rate |
|---|---|
| From 01/01/2018 | 5% |

