VAT · United Arab Emirates
VAT in the UAE
The UAE applies a single standard VAT rate of 5%, alongside zero-rated (0%) and exempt categories. Here is how the system fits together.
- 5%
- 0% zero-rated
- Exempt
The calculator
Net · VAT · GrossThe 5% standard rate
VAT was introduced across the UAE on 1 January 2018 under Federal Decree-Law No. 8 of 2017 (as amended by Federal Decree-Law No. 16 of 2025, effective 1 January 2026). The standard rate of 5% applies to most goods and services. The tax is administered by the Federal Tax Authority (FTA) through the EmaraTax portal.
| Gross (AED) | Net (AED) | VAT (AED) |
|---|---|---|
| 10.00 | 9.52 | 0.48 |
| 50.00 | 47.62 | 2.38 |
| 100.00 | 95.24 | 4.76 |
| 250.00 | 238.10 | 11.90 |
| 500.00 | 476.19 | 23.81 |
| 1,000.00 | 952.38 | 47.62 |
| 5,000.00 | 4,761.90 | 238.10 |
Zero-rated supplies (0%)
These are taxable but charged at 0%, and the supplier can still recover input VAT. They include:
- Exports of goods and services outside the GCC
- International transport of passengers and goods
- The first supply of new residential property within three years of completion
- Certain healthcare and education services
- Crude oil and natural gas
- Certain investment-grade precious metals
Exempt supplies
These carry no VAT, and input VAT on related costs cannot be recovered. They include:
- Certain financial services
- Residential property (supplies after the first)
- Bare land
- Local passenger transport
Classifying a supply as zero-rated rather than exempt can be the difference between recovering input VAT and absorbing it. When in doubt, check the FTA guidance or a tax adviser. To register, see VAT registration.
FAQ
Frequently asked questions
What is the standard VAT rate in the UAE?
5%, in force since 1 January 2018 under Federal Decree-Law No. 8 of 2017 and administered by the Federal Tax Authority (FTA).
What is the difference between zero-rated and exempt?
Zero-rated supplies are taxable at 0% and still allow the supplier to recover input VAT. Exempt supplies carry no VAT and do not allow input-VAT recovery.
Does Dubai have a different VAT rate?
No. The 5% rate applies uniformly across all Emirates, including Dubai, Abu Dhabi and Sharjah.