Unchanged at 5% since it was introduced in 2018, among the lowest in the Gulf. Some education and healthcare is zero-rated.
AED 5.71 of it is tax, leaving AED 114.29 before tax.
ضريبة القيمة المضافة rates in the United Arab Emirates for 2026
The United Arab Emirates charges ضريبة القيمة المضافة at a standard rate of 5%. There is no reduced rate. Amounts on this page are in United Arab Emirates Dirham (AED).
Unchanged at 5% since it was introduced in 2018, among the lowest in the Gulf. Some education and healthcare is zero-rated.
Rate
Type
Gross = net ×
Tax share of the gross price
5%
standard
1.05
4.76%
How much ضريبة القيمة المضافة is inside a price
If a price already includes ضريبة القيمة المضافة, divide by 1 plus the rate: at 5%, AED 400 ÷ 1.05 = AED 380.95 before tax, so AED 19.05 is tax.
Rate
Tax in AED 400
Net of AED 400
Tax in AED 4,000
Net of AED 4,000
5%
AED 19.05
AED 380.95
AED 190.48
AED 3,809.52
Adding ضريبة القيمة المضافة to a net amount
For a quote or invoice, multiply the net amount by 1 plus the rate: at 5%, AED 4,000 × 1.05 = AED 4,200.
Rate
Tax on AED 400
AED 400 plus tax
Tax on AED 4,000
AED 4,000 plus tax
5%
AED 20
AED 420
AED 200
AED 4,200
How the United Arab Emirates' standard rate compares
The United Arab Emirates' 5% standard rate compares with a median of 18%: 35 of the 39 countries in this calculator's table charge more, 1 less.
This is a reference calculation using common tax assumptions and is not a substitute for professional advice. We accept no liability for decisions made from it — see the terms of use for details.