Gulf VAT Calculator — UAE 5% & Saudi 15%
Add VAT or strip it back out, for the UAE and Saudi Arabia — with the thresholds that decide whether you must register at all.
VAT in the Gulf looks simple — one rate — until you have to put it on a real invoice. The UAE charges a standard rate of 5% since 1 January 2018 (UAE Ministry of Finance). Saudi Arabia charges 15% since 1 July 2020. Both countries use the same arithmetic: add VAT by multiplying the net price, strip VAT by dividing the gross price. The mistake to avoid is treating the two directions as mirror images: 5% on top of a net price is not the same as 5% off a gross price.
Registration matters too. In the UAE a business must register if taxable supplies and imports exceed AED 375,000, and may register voluntarily above AED 187,500 (Federal Tax Authority). The FTA notes this threshold is not applicable to foreign businesses, so non-resident sellers should check their own rule. Zero-rated and exempt supplies exist in both countries — 5% and 15% are the standard rates, not a universal rate. All calculations run in your browser and nothing is stored.
Your numbers
Result
Paid spreadsheet version
UAE VAT return spreadsheet — $19 via Lemon Squeezy — $19 via Lemon Squeezy. Purchase link to be added.
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Payroll, accounting, and company-formation tools for the Gulf we are reviewing. No recommendation yet — placeholder for vetted picks only.
How to use the result
- Quoting before VAT? Use net price mode and show the client the gross total.
- Given a gross price? Use gross price mode to find out how much you keep after VAT.
- Check the registration threshold separately — charging VAT without registering, or registering late, is a compliance problem, not a rounding problem.
Frequently asked questions
Is UAE VAT 15%?
No. UAE VAT is 5%. Saudi VAT is 15%. Some vendor pages mix them up — this calculator keeps the two rates separate.
What are the UAE registration thresholds?
Mandatory registration above AED 375,000 of taxable supplies and imports; voluntary registration above AED 187,500, per the Federal Tax Authority. The threshold test looks at the previous 12 months or the anticipated next 30 days, and the FTA notes it is not applicable to foreign businesses.
Why is stripping VAT not subtracting the rate?
Because the rate applies to the net price. To strip 5% out of a 1,050 gross price, divide by 1.05 to get 1,000 net — not subtract 5% of 1,050.
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Sources & verification: see links in the text above. Rates verified 2026-10-18. If a rate or law has changed since then, the law prevails over this calculator.