VAT Calculator UAE

What is VAT in UAE ?

VAT (Value Added Tax) is a consumption-based tax that was introduced in the United Arab Emirates in January 2018. Under the current regulations, VAT-registered businesses must collect tax on behalf of the government at a standard rate of 5% on most goods and services. The introduction of VAT has made it essential for individuals and businesses to use a VAT calculator in UAE to ensure compliance and accurate pricing.

Why Was VAT Introduced in the UAE?

The main purpose behind the introduction of VAT in the UAE was to diversify government revenue sources beyond oil and support public services. By implementing VAT, the UAE government aims to ensure long-term economic stability and fund vital projects such as healthcare, education, and infrastructure. 
 

VAT Calculation Formula

Calculating VAT accurately is crucial for compliance. Here’s how you can do it with a UAE calculator:

Sale Price Exclusive of VAT

• VAT Amount = Sale price × VAT rate
• Gross Amount = Sale price × (1 + VAT rate)

Sale Price Inclusive of VAT

• VAT Amount = Sale price × [VAT rate / (1 + VAT rate)]
• Net Sale Amount = Sale price / (1 + VAT rate)

VAT Calculation Example

Suppose you buy an item for AED 100, and the standard VAT rate is 5%.

Exclusive of VAT: 

VAT = AED 100 × 5% = AED 5

Gross Amount = AED 100 × (1 + 5%) = AED 105

Inclusive of VAT:

VAT = AED 100 × [5% / (1+5%)] = AED 4.76

Net Sale Amount = AED 100 / (1 + 5%) = AED 95.24 

How to Use ClearTax VAT Calculator

 ClearTax VAT tax calculator is user-friendly and designed to meet your business and personal needs for VAT calculation in the UAE.

 Using ClearTax’s VAT calculator is straightforward:

• Enter the amount for taxable goods or services.
• Input the VAT rate (the standard is 5%).
• Choose whether the price is inclusive or exclusive of VAT.
• Click Calculate to see the VAT amount and the total price.

Bulk VAT Calculator UAE – Excel File Download

For businesses and individuals need multiple VAT calculations, here is a bulk VAT Calculator tool in Excel format. This tool is specifically designed to calculate VAT for  large volumes of transactions.

Download Bulk VAT Calculator UAE Excel Download

How to Use the Bulk VAT Calculator:

1. Download the official Excel template
2. Open the file in Microsoft Excel or any compatible spreadsheet software.
3. Enter your transaction amounts in the designated column. For each entry, indicate whether the amount is VAT inclusive or exclusive.
4. The calculator will automatically compute the VAT amount and the total (including VAT) for each transaction using the current UAE VAT rate.

Important VAT Filing Information

Every VAT registered business must file details of their sales and purchases with the FTA on a periodic basis and deposit outstanding VAT liability. Here are some major information on VAT Filing

• VAT returns are usually filed quarterly, with some businesses required to file monthly.
• The filing deadline is the 28th day of the month following the tax period.
• All VAT returns must be submitted through the FTA online portal.
• Ensure you calculate and pay the correct VAT amount due before the deadline.
• Keep all tax invoices and supporting records for at least 5 years.
• Late filing or payment results in automatic financial penalties.
• Only claim input VAT on eligible business expenses with proper documentation.
• Double-check all figures and information before submitting your VAT return.