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How to add and remove UAE VAT (5%) correctly

By the Sumtrail editorial team. Published 3 October 2026. Last updated 3 October 2026.

The UAE's standard VAT rate is 5%. Whether you run a shop or are checking a receipt, you need two simple formulas.

Adding VAT

Multiply the price before VAT by 1.05. A price of AED 200 becomes AED 210, of which AED 10 is VAT.

Removing VAT

Divide the total including VAT by 1.05. A total of AED 210 is AED 200 before VAT, so the VAT is AED 10.

The common mistake

Taking 5% off a VAT-inclusive total gives the wrong answer. 5% of AED 210 is AED 10.50, but the VAT is only AED 10, because the 5% was charged on the AED 200 price, not on the total.

Other Gulf rates

Saudi Arabia charges 15%, Bahrain 10% and Oman 5%. The same formulas work: multiply or divide by 1 plus the rate. Some goods and services are zero-rated or exempt, so check with the tax authority for anything unusual.

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