How to use it
- Enter the Amount before VAT in AED - an invoice, a rental quote or a contract value.
- Check the VAT Rate. It starts at 5%, the UAE standard rate; change it to use another rate.
- Read the VAT Amount and the Total with VAT.
- To find the VAT inside a price that already includes it, divide the total by 1.05 for the amount before VAT (at 5%), then enter that amount here.
The formula
VAT = amount × VAT rate ÷ 100, and total with VAT = amount + VAT. At 5%, the total is the amount × 1.05. To go back from a total that includes VAT, divide it by 1 + rate: at 5%, the total ÷ 1.05 gives the amount before VAT.
VAT on equipment rental and construction in the UAE
The standard rate of UAE VAT is 5%, charged on most supplies including equipment rental, equipment sales and contracting services. A business must register for VAT once its taxable supplies pass the threshold set by the Federal Tax Authority (AED 375,000 a year), and a registered supplier shows the VAT separately on a tax invoice. Always check whether a quote is stated "excluding VAT" or "including VAT" before you compare it with another.
Where VAT fits in a cost estimate
For a registered business VAT paid on purchases can usually be recovered, so keep it out of project cost and margin calculations and add it only to the final invoice. This calculator is a basic calculation; for special cases such as zero-rated or exempt supplies and reverse charge, ask your accountant or check the Federal Tax Authority guidance.
Worked examples
- A AED 50,000 invoice before VAT carries AED 2,500.00 of VAT at 5%, so the total is AED 52,500.00.
- A crane hire quoted at AED 12,000 excluding VAT adds AED 600.00 of VAT, giving a total of AED 12,600.00 to pay.
- A AED 1,000,000 contract invoiced in full adds AED 50,000.00 of VAT, so the client pays AED 1,050,000.00.
- For a comparison at a 15% rate, AED 250,000 carries AED 37,500.00 of VAT and totals AED 287,500.00.
VAT at 5% on common amounts
Printable chart| Amount before VAT (AED) | VAT (5%) | Total with VAT |
|---|---|---|
| 100 | AED 5.00 | AED 105.00 |
| 500 | AED 25.00 | AED 525.00 |
| 1,000 | AED 50.00 | AED 1,050.00 |
| 2,500 | AED 125.00 | AED 2,625.00 |
| 5,000 | AED 250.00 | AED 5,250.00 |
| 10,000 | AED 500.00 | AED 10,500.00 |
| 25,000 | AED 1,250.00 | AED 26,250.00 |
| 50,000 | AED 2,500.00 | AED 52,500.00 |
| 100,000 | AED 5,000.00 | AED 105,000.00 |
| 250,000 | AED 12,500.00 | AED 262,500.00 |
| 500,000 | AED 25,000.00 | AED 525,000.00 |
| 1,000,000 | AED 50,000.00 | AED 1,050,000.00 |
At the UAE standard rate of 5%. Use the calculator above for another rate.
Frequently asked questions
What is the VAT rate in the UAE?
The standard rate of VAT in the UAE is 5%. The calculator starts at 5% and you can change the rate.
How do I add 5% VAT to a price?
Multiply the price by 1.05, or enter it above to see the VAT amount and the total.
How do I remove VAT from a price that includes it?
Divide the total by 1.05 to get the amount before VAT, then subtract that amount from the total to get the VAT. Enter the amount before VAT above to check it.
Is equipment rental subject to VAT in the UAE?
Equipment rental is generally a taxable supply at 5%. Check the quote or invoice, and ask the supplier whether the price includes VAT.
Can I use another VAT rate?
Yes. Change the VAT Rate field to any rate you need, for another country for example.
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<iframe src="https://www.equipmentsfinder.com/embed/field-tools/vat-calculator" title="UAE VAT calculator" width="100%" height="620" style="border:0;max-width:720px" loading="lazy"></iframe> <p style="font-size:12px"><a href="https://www.equipmentsfinder.com/en-us/field-tools/vat-calculator">UAE VAT calculator</a> by <a href="https://www.equipmentsfinder.com">EquipmentsFinder</a></p>