Our Online VAT Calculator is a valuable tool developed by Emerald, a leading provider of VAT consultancy services in Dubai. This calculator is designed to simplify the process of VAT calculations, making it easier for businesses in the UAE to determine the value of VAT. With the VAT Calculator UAE, you have two options available - add and subtract - allowing you to easily calculate the VAT amount for both scenarios.
By utilizing our user-friendly VAT Calculator, businesses can save time and effort in performing complex calculations manually. This tool streamlines the process, ensuring accuracy and efficiency in determining VAT values. Whether you need to calculate VAT on sales or VAT on purchases, our Online VAT Calculator provides a convenient and reliable solution for businesses in the UAE. Trust in Emerald's expertise and our commitment to simplifying VAT calculations with our innovative Online VAT Calculator.
The Value Added Tax (VAT) was implemented in the UAE starting from January 1, 2018. It is a consumption tax that applies to the transactions of goods and services at each stage of the supply chain, following the regulations outlined in the VAT Law or Federal Decree-Law No. 8 of 2017. Since its introduction, all businesses in the UAE are required to register for VAT to ensure compliance, as failure to do so can result in significant penalties as per the regulations set by the Federal Tax Authority (FTA). Therefore, businesses must have a clear understanding of VAT calculations in the UAE to avoid non-compliance and potential penalties.
The calculation of VAT in the UAE involves applying the designated VAT rate to the value of taxable supplies made by a business. It is important for businesses to accurately determine the VAT amount applicable to their transactions to ensure proper invoicing and compliance with VAT regulations. Understanding VAT calculations helps businesses maintain accurate financial records, calculate the appropriate VAT amount to be charged or paid, and fulfill their VAT reporting obligations. By staying informed about the VAT calculation process in the UAE, businesses can ensure compliance and avoid penalties while effectively managing their VAT-related responsibilities.
VAT Registration Criteria
In the UAE, VAT registration criteria are determined based on the annual turnover of businesses. The government has established three different slabs to determine the VAT registration requirement.
Our UAE Tax Calculator simplifies the process of calculating VAT in the UAE. To use it, enter the total amount and specify the VAT percentage. The calculator offers two options:
"Add VAT" and "Subtract VAT."
If you choose "Add VAT," input the amount without including the VAT, and the calculator will provide the VAT amount and the total amount including VAT. For example, entering AED 100 with a 5% VAT will display a VAT amount of AED 5 and a total amount of AED 105.
Alternatively, if you select "Subtract VAT," input the amount including the VAT, and the calculator will show the VAT amount and the total amount excluding VAT. Using the same example, inputting AED 100 with a 5% VAT will display a VAT amount of AED 4.76 and a total amount of AED 95.24.
You can refer to the provided contact us link in case of any doubts.
Business owners in the UAE can calculate VAT using a simple formula:
The VAT rate in the UAE is set at 5%, making it one of the lowest rates globally. It is important to note that the UAE government does not directly collect VAT; instead, businesses are responsible for charging VAT to their customers, making it an indirect consumption tax.
To calculate VAT, businesses need to maintain records of every transaction where VAT is paid. The output tax refers to the VAT charged to customers on sales or supplies made by the business, while the input tax refers to the VAT paid by the business on purchases or expenses incurred. By subtracting the input tax from the output tax, businesses can determine the VAT amount that needs to be remitted to the government.
Understanding the VAT theory all at once is challenging. We are always here to assist you with the calculations and knowledge of VAT. We provide the highest level of accuracy to prevent severe fines and legal repercussions under FTA in the UAE. Our VAT specialists help you with computation accuracy for better financial management.
At Emerald, we enjoy working in partnership with our esteemed clientele. We would be happy to share the latest information and best practices with you. Since the Federal Tax Authority (FTA) mandated the registration for VAT, the period for VAT registration has been extended over the previous few months due to the increased number of firms that have registered for the value-added tax (VAT).
In Dubai, United Arab Emirates, and throughout the Middle East, we provide auditing, accounting, and VAT consultancy services.