UAE VAT at 5%: How the Standard Rate Actually Works
October 23, 2026
Per Federal Decree-Law No. 8 of 2017 and Cabinet Decision No. 52 of 2017 (via tax.gov.ae), the UAE applies VAT at a standard rate of 5% on most goods and services, with specific categories treated as zero-rated or exempt instead — covered in dedicated articles elsewhere in this series.
Skip the math and get your answer instantly:
Open the UAE VAT Calculator →Adding VAT (VAT-Exclusive to VAT-Inclusive)
Price with VAT = Price without VAT × 1.05. For an AED 500 item: 500 × 1.05 = AED 525.
Removing VAT (VAT-Inclusive to VAT-Exclusive)
Price without VAT = Price with VAT ÷ 1.05. For an AED 525 VAT-inclusive price: 525 ÷ 1.05 = AED 500.
Frequently Asked Questions
What's the standard UAE VAT rate?
5%, per the official FTA framework (Federal Decree-Law No. 8 of 2017 and Cabinet Decision No. 52 of 2017).
How do I add 5% VAT to a price?
Multiply the VAT-exclusive price by 1.05.
How do I remove VAT from a VAT-inclusive price?
Divide the VAT-inclusive price by 1.05.
Does every good or service get taxed at 5%?
No — some categories are zero-rated or exempt instead, covered in dedicated articles elsewhere in this series.