If you do business in the UAE or Saudi Arabia, VAT is part of every transaction. The UAE charges 5% VAT on most goods and services. Saudi Arabia charges 15%. Whether you’re pricing products, preparing invoices, filing tax returns, or just checking a receipt, you need to calculate VAT accurately and quickly.
The VAT Calculator on AllTools handles both UAE and KSA rates. Add VAT to a net amount, extract VAT from a gross amount, or run bulk calculations — all in your browser, with no signup and no data leaving your device. For UAE-specific features, there’s also a dedicated UAE VAT Calculator.
UAE VAT (5%) — How It Works
The United Arab Emirates introduced Value Added Tax on January 1, 2018, at a standard rate of 5%. It applies to most goods and services, with some exceptions.
What’s taxed at 5%
- Most goods and services sold in the UAE
- Imports into the UAE (collected at customs or through reverse charge)
- Commercial rent
- Hotel and hospitality services
- Electronics, clothing, food (non-basic), and consumer goods
What’s zero-rated (0%)
- Exports of goods and services outside the GCC
- International transportation
- First supply of residential property within 3 years of construction
- Certain education and healthcare services
What’s exempt
- Certain financial services
- Residential property (resale after first supply)
- Bare land
- Local passenger transport
How to calculate UAE VAT
The math is straightforward:
Adding VAT (net to gross):
- Net amount: AED 1,000
- VAT (5%): AED 1,000 × 0.05 = AED 50
- Gross amount: AED 1,050
Removing VAT (gross to net):
- Gross amount: AED 1,050
- Net amount: AED 1,050 ÷ 1.05 = AED 1,000
- VAT amount: AED 1,050 - AED 1,000 = AED 50
The common mistake when removing VAT is to simply subtract 5% from the gross. That gives the wrong answer. AED 1,050 × 0.05 = AED 52.50 — which is incorrect. You must divide by 1.05 to extract the net, then subtract to find the VAT. The VAT Calculator handles this correctly every time.
KSA VAT (15%) — How It Works
Saudi Arabia introduced VAT on January 1, 2018, at 5%, then tripled it to 15% on July 1, 2020. The higher rate was introduced as part of fiscal reforms to reduce dependence on oil revenue.
What’s taxed at 15%
- Most goods and services within Saudi Arabia
- Imports into the Kingdom
- Commercial property rent
- Telecommunications, electronics, consumer goods
- Restaurant and food service (except basic food items)
What’s zero-rated (0%)
- Exports outside the GCC
- International transportation services
- Certain medicines and medical equipment on the approved list
- Investment metals (gold, silver, platinum) with purity of 99% or higher
What’s exempt
- Certain financial services (interest, insurance premiums)
- Residential property rental
- Government services issued without a fee
How to calculate KSA VAT
Adding VAT (net to gross):
- Net amount: SAR 1,000
- VAT (15%): SAR 1,000 × 0.15 = SAR 150
- Gross amount: SAR 1,150
Removing VAT (gross to net):
- Gross amount: SAR 1,150
- Net amount: SAR 1,150 ÷ 1.15 = SAR 1,000
- VAT amount: SAR 1,150 - SAR 1,000 = SAR 150
Again, dividing by 1.15 is the correct way to extract the net from a VAT-inclusive amount. Do not simply subtract 15%.
VAT Inclusive vs Exclusive Explained with Examples
This is where most confusion happens. “VAT inclusive” and “VAT exclusive” refer to whether a stated price already contains VAT.
VAT Exclusive (net price)
The price does not include VAT. You need to add VAT on top.
Example (UAE): A product is listed at AED 500 + VAT.
- VAT: AED 500 × 0.05 = AED 25
- Total you pay: AED 525
Example (KSA): A service costs SAR 2,000 + VAT.
- VAT: SAR 2,000 × 0.15 = SAR 300
- Total you pay: SAR 2,300
VAT Inclusive (gross price)
The price already includes VAT. The VAT is embedded in the number.
Example (UAE): A receipt shows AED 525 (VAT inclusive).
- Net price: AED 525 ÷ 1.05 = AED 500
- VAT portion: AED 525 - AED 500 = AED 25
Example (KSA): A receipt shows SAR 2,300 (VAT inclusive).
- Net price: SAR 2,300 ÷ 1.15 = SAR 2,000
- VAT portion: SAR 2,300 - SAR 2,000 = SAR 300
Comparison table
| Scenario | UAE (5%) | KSA (15%) |
|---|---|---|
| Net price | AED 1,000 | SAR 1,000 |
| VAT amount | AED 50 | SAR 150 |
| Gross price | AED 1,050 | SAR 1,150 |
| VAT as % of gross | 4.76% | 13.04% |
| Formula: Net → Gross | × 1.05 | × 1.15 |
| Formula: Gross → Net | ÷ 1.05 | ÷ 1.15 |
Notice that 5% VAT represents 4.76% of the gross price (not 5%), and 15% VAT represents 13.04% of the gross price (not 15%). This is why you can’t just subtract the percentage — the base is different.
Step by Step: Use the Calculator
Here’s how to use the AllTools VAT Calculator for quick and accurate results:
Step 1 — Open the tool. Go to the VAT Calculator. No login required.
Step 2 — Enter the amount. Type the number you’re working with — either the net amount (before VAT) or the gross amount (after VAT).
Step 3 — Select the VAT rate. Choose 5% for UAE or 15% for KSA. You can also enter any custom rate for other countries or special scenarios.
Step 4 — Choose the operation. Select “Add VAT” if you’re starting with a net amount, or “Remove VAT” if you have a VAT-inclusive amount.
Step 5 — Read the results. The calculator instantly shows the net amount, VAT amount, and gross amount. No submit button — results update as you type.
For UAE-specific calculations with additional features like multi-item invoices, use the dedicated UAE VAT Calculator.
Bulk calculations
If you’re calculating VAT for multiple items — like preparing an invoice or reconciling receipts — the calculator supports entering multiple amounts. This is faster than calculating each line item individually. Enter all your amounts, and the tool calculates the total net, total VAT, and total gross in one pass.
Common VAT Scenarios
Freelancers in UAE and KSA
If your annual revenue exceeds the mandatory registration threshold (AED 375,000 in UAE, SAR 375,000 in KSA), you must register for VAT, charge it on your invoices, and file periodic returns.
Practical workflow:
- Calculate your service fee (net)
- Use the VAT Calculator to add the applicable VAT
- Include both amounts on your invoice
- Collect the gross amount from your client
- Report and remit the VAT portion to the tax authority
Freelancers below the threshold may voluntarily register (if above AED 187,500 in UAE or SAR 187,500 in KSA) to reclaim VAT on business expenses.
Businesses importing goods
When you import goods into the UAE or KSA, VAT is due on the landed cost (product price + shipping + customs duties). The VAT calculator helps you estimate the total cost including VAT before the shipment arrives, so you can budget accurately.
Example (KSA import):
- Product cost: SAR 10,000
- Shipping: SAR 500
- Customs duty (5%): SAR 525
- Taxable base: SAR 11,025
- VAT (15%): SAR 1,653.75
- Total landed cost: SAR 12,678.75
Pricing products for retail
If you’re setting retail prices (which must be VAT-inclusive in both UAE and KSA for consumer-facing sales), work backward from your target price:
Example (UAE): You want a shelf price of AED 99.
- Net price: AED 99 ÷ 1.05 = AED 94.29
- VAT: AED 4.71
- Your revenue per unit: AED 94.29
This helps you understand your actual margin after VAT.
Related MENA Finance Tools
Managing finances in the GCC region often requires more than just VAT calculations. Here are related tools that work alongside the VAT Calculator:
- UAE VAT Calculator — Dedicated calculator with UAE-specific features including multi-line calculations
- Invoice Generator — Create professional invoices with VAT line items, perfect for freelancers and small businesses
- Salary to Hourly Converter — Convert between annual salary and hourly rate, useful for contract pricing
- Take-Home Pay Calculator — Estimate net income after deductions (relevant for KSA where there are social insurance contributions)
- Tax Bracket Calculator — Understand tax brackets for countries with income tax
- Zakat Calculator — Calculate Zakat obligations on savings and investments
- Saudi Salary Calculator — Calculate net salary with GOSI deductions for Saudi employees
FAQ
What is the current VAT rate in UAE?
The UAE VAT rate is 5%, unchanged since its introduction on January 1, 2018. There have been no announced plans to change it. The rate applies uniformly to all taxable supplies unless they qualify for zero-rating or exemption.
What is the current VAT rate in Saudi Arabia?
The KSA VAT rate is 15%, in effect since July 1, 2020. It was originally 5% when first introduced in January 2018, then tripled to 15% as part of fiscal reforms. The government has indicated interest in potentially reducing it as the economy diversifies, but no timeline has been set.
Do I need to register for VAT?
In the UAE, VAT registration is mandatory if your taxable supplies exceed AED 375,000 per year and voluntary if they exceed AED 187,500. In KSA, mandatory registration applies above SAR 375,000 per year. Below these thresholds, you generally don’t charge or collect VAT. The rules apply to businesses and sole proprietors (freelancers) alike.
How often do I file VAT returns?
In the UAE, most businesses file quarterly. Large taxpayers may be assigned monthly filing. In KSA, businesses file monthly (if annual taxable supplies exceed SAR 40 million) or quarterly. Filing deadlines are typically 28 days after the end of the tax period.
Is VAT applied on top of customs duty?
Yes, in both UAE and KSA. When importing goods, VAT is calculated on the total value including the product cost, shipping, insurance, and any customs duties. This means the effective cost increase from import is higher than the VAT rate alone — the customs duty increases the base on which VAT is calculated.
Calculate Your VAT Now
Open the VAT Calculator to add or remove VAT instantly. For UAE-specific calculations, use the UAE VAT Calculator. Both tools run in your browser — no data is stored, no account required.
Explore more financial tools in the Finance category and region-specific calculators in the MENA category.
