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VAT (Value Added Tax) Calculator in the UAE

VAT Calculator – Fast and Convenient Tool for Value Added Tax Estimation in the UAE

On January 1, 2018, they have introduced a new VAT with a tax rate of 5% in the UAE, Saudi Arabia, as well as some other GCC countries. In this regard, almost all companies registered here must introduce a new system of reporting and assessment of this tax. Therefore, the demand for the services of consulting companies that deal with this issue has increased drastically. But there is another way to solve this problem – use our online VAT calculator to assess this tax in Dubai, the UAE.

What are the features of the use of VAT taxation and why does one need a VAT calculator? Let's take a look at this issue.

The specifics of the value added tax charging and the use of VAT calculator

According to local law, value-added tax (VAT) calculation formula is quite simple. It is as follows: companies whose taxable supply exceeds 375,000 dirhams (USD 102,180) must be registered as VAT payers. One can also register in own will if the amount of exports and imports, exceeds 187,500 dirhams (51,090 USD). These thresholds and the need for registration are applied regardless of the place of company registration in the UAE. The same rules are applied to local companies and companies registered in free zones.

The standard VAT rate of 5% is charged on most goods and services. However, there is a list of products that are considered to be the most important for the economy, and they are exempt from the VAT. They have either a zero tax rate or are exempt from the VAT. The difference between these two options is that suppliers of goods or services that are taxed at a rate of 0% can return the VAT paid on purchases for their business. And suppliers of goods and services exempt from VAT are not required to register for VAT purposes at all, or, if they are registered, they are allowed not to return the VAT which they paid in procurement.

In order not to get confused about what group you belong to and what tax amount your company has to pay, we recommend you to use our convenient free online VAT calculator. The VAT calculation method, which it is based on, takes into account all local tax features, so assessing your taxes will not be a difficult task for you.

Preferential VAT rates in the UAE

Zero VAT rate is applied to a business that exports goods and services outside the GCC countries (to protect this key business area for the UAE), as well as education, medical equipment, health care, and the commercial aircraft, buses, and trains.

Also, the 0% rate is applied to international transport services (passenger and freight), to some investment grade precious metals, newly built residential properties, to crude oil and natural gas.

VAT-free sale of residential buildings, undeveloped land, local public transport services, and some financial services.

It also includes life insurance products such as loans and fixed deposits. However, general insurance and paid financial services are subject to VAT.

Do not waste your time in vain; use our simple free vat calculator. This online tool will allow you to quickly and easily calculate the required amount of taxes.