VAT Calculator

Calculate VAT (Value Added Tax) for your business transactions in Saudi Arabia

Enter Details

Sale value

Range: 0 to 1,000,000 SAR

VAT Rate (%)

Valid range: 1% to 45% (Input accepts 0-100%)

Is Sale Inclusive of VAT?

YesNo

Results

Sale Value (Net)

SAR 869,565.22

VAT Amount:

SAR 130,434.78

Total Value:

SAR 1,000,000.00

Note: The sale value includes VAT. VAT amount is calculated from the inclusive price.

Online VAT Calculator in UAE

An online VAT calculator in the UAE helps businesses and individuals calculate 5% VAT quickly and accurately. Whether you are dealing with VAT-inclusive or exclusive prices, a VAT calculator ensures compliance with Federal Tax Authority (FTA) regulations and prevents calculation errors.

What is VAT in the UAE? VAT Registration Criteria

Value Added Tax (VAT) in the UAE is an indirect tax applied to most goods and services. It was introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. The UAE charges VAT at a standard rate of 5% at every stage of the supply chain, from production to the final sale.

Businesses and Individuals in the UAE refer to the following VAT classification:

Standard VAT (5%):

Most goods and services in the UAE are subject to the standard rate of 5% VAT, applied throughout the supply chain.

Zero-Rated VAT (0%):

Some goods and services are taxed at 0% VAT. Businesses still charge customers VAT at 0%, but they can reclaim the VAT paid on the business expenses. Examples of zero-rated supplies in the UAE include exports and international transport.

VAT-Exempt Supplies:

Certain goods and services are exempt from VAT, meaning no VAT is charged, and businesses cannot reclaim VAT on expenses. Examples include residential property and local passenger transport.

VAT Registration Criteria in the UAE

In the UAE, VAT registration for businesses and individuals is divided into 3 categories based on annual turnover. The three prescribed slabs are:

VAT registration is mandatory in the UAE for businesses with an annual turnover above AED 375,000.

For businesses with an annual turnover between AED 187,500 and AED 375,000, VAT registration is optional.

VAT registration is not required for businesses with an annual turnover below AED 187,500.

Note: Businesses must register for VAT in the UAE if their taxable supplies exceed the threshold set by the Federal Tax Authority (FTA). Businesses in the UAE should assess their annual turnover carefully to determine whether VAT registration is required or optional.

How to Use the SafeLedger VAT Calculator?

You can follow the following steps to use the online VAT calculator by SafeLedger:

Enter the Amount: Start by typing the value of the product or service in the input field. This is the base amount on which VAT will be calculated.
Choose VAT Type: Select whether the entered amount is VAT-inclusive (already includes VAT) or VAT-exclusive (VAT needs to be added). This ensures the calculator gives accurate results.
Click Calculate: Press the "Calculate" button. The tool processes the information instantly.
View Results: The calculator displays:
- The VAT amount is based on the selected type.
- The total amount, including or excluding VAT as chosen.

You can adjust the amount or change the VAT type at any time to recalculate. This makes it easy for businesses and consumers to plan budgets, invoices, or prices accurately.

VAT Calculation Formula in the UAE

Calculating VAT correctly is important for businesses and consumers to ensure compliance with tax laws and avoid errors. Depending on whether the price already includes VAT or not, different formulas are used. The following formulas help you quickly determine the VAT amount and total price.

Calculation Type	Formula	Example
Adding VAT (VAT Exclusive: When VAT is not included in the total amount)	Total Price = Net Price × (1 + VAT Rate)	AED 100 × 1.05 = AED 105
Excluding VAT (VAT Inclusive: When VAT is included in the total amount)	Net Price = Gross Price ÷ (1 + VAT Rate)	AED 105 ÷ 1.05 = AED 100

Whether dealing with VAT-inclusive or VAT-exclusive prices, using the correct formula ensures accuracy and compliance with UAE tax laws. Use SafeLedger's VAT Calculator to instantly determine VAT amounts and total prices easily and quickly.

Frequently Asked Questions (FAQs)

A VAT calculator is an online tool that helps calculate VAT amounts and total prices quickly. It works for both VAT-inclusive and VAT-exclusive prices, making tax calculations simple and accurate. It also reduces manual errors and saves time for businesses and individuals dealing with frequent transactions.

The standard VAT rate in the UAE is 5%, which applies to most goods and services. Some supplies, like exports and international transport, are zero-rated, while others, such as residential property and local passenger transport, are exempt. This structure keeps taxation balanced while supporting essential and international services.

Zero-rated supplies are taxed at 0% VAT, but businesses can reclaim VAT paid on related expenses. Exempt supplies are not subject to VAT, and businesses cannot recover VAT on them. Understanding this distinction is important for accurate pricing, accounting, and VAT return filing. It also helps businesses determine whether they are eligible to claim input VAT. Incorrect classification can lead to compliance issues or penalties.

Businesses whose taxable supplies exceed the threshold set by the Federal Tax Authority (FTA) must register for VAT. Registration ensures compliance with the UAE VAT law and enables accurate VAT return filing. It also allows businesses to legally charge VAT on invoices and recover VAT paid on eligible expenses. Failing to register on time may result in fines or legal consequences.

Enter the amount, then select whether it is VAT-inclusive or VAT-exclusive. Click calculate to see the VAT amount and total price instantly. Some calculators let you adjust rates or recalculate for different amounts, making it easy for businesses and consumers to get accurate results quickly. This is especially useful for invoice preparation, price checks, and budgeting. Using a VAT calculator reduces manual errors and saves time.

Yes, VAT calculators are helpful for both businesses preparing invoices and consumers checking final prices. They ensure accurate VAT computation and reduce errors in financial planning. This makes them useful for everyday purchases as well as professional accounting tasks.

The SafeLedger VAT Calculator provides instant and accurate VAT calculations tailored for the UAE. It handles both inclusive and exclusive VAT prices, helping businesses and consumers save time and stay compliant. Its user-friendly design makes VAT calculations quick, reliable, and stress-free.