How to add 5% VAT
To add UAE VAT, multiply the price before VAT by 0.05 to get the VAT, then add it to the price. Or multiply by 1.05 in one step. A quote of AED 2,000 becomes AED 2,100: AED 2,000 for the goods or service and AED 100 of VAT. Businesses registered for VAT must charge it on most supplies they make in the UAE and show it on the tax invoice, so this is the figure to use when you prepare a quote or invoice.
How to remove VAT from a total
A common mistake is to take 5% off the total. That is wrong, because the 5% was calculated on the smaller, pre-VAT amount. The correct way is to divide the total by 1.05. For AED 1,050 that gives AED 1,000 before VAT and AED 50 of VAT. A quick check: the VAT inside a 5%-inclusive total is always one twenty-first of it. Use this when a receipt shows only the total and you need the VAT for your expenses or your VAT return.
Rounding to the fils
The calculator works in whole fils, so there is no floating-point drift: AED 33.33 plus 5% gives exactly AED 1.67 of VAT and AED 35.00 in total. When removing VAT, the net amount is rounded and the VAT is whatever remains, so the two always add up to the total you typed. On a tax invoice with many lines, your accounting system may round each line separately, which can make the invoice total differ from this calculator by a fils or two.
Who must register and what is zero-rated
In the UAE, a business must register for VAT when its taxable supplies and imports pass AED 375,000 in the last 12 months or are expected to in the next 30 days, and may register voluntarily from AED 187,500. Some supplies are zero-rated, such as most exports and international transport, so they carry 0% VAT. Others, such as most residential rents and local passenger transport, are exempt. For those, choose "Other rate" and enter 0, and always confirm the treatment of a specific supply with the Federal Tax Authority or a tax agent.