VAT Calculator – How to Calculate VAT

Updated on July 20, 2022

Concerned about how much VAT you’ll have to pay? Is the VAT included in the purchase, but I’m not sure how much it is?

Using the online VAT calculator, you can figure out your total tax obligation, both with and without VAT. You only have to fill in the amount to get an accurate VAT calculation.





Compliance solutions right from invoicing to filing returns are just a click away

How Vat Calculator works

Use the VAT calculator to calculate the taxable value and the amount of VAT that will be charged. The price and the VAT rate are all you need to know to compute VAT. The VAT calculator allows you to determine whether or not a tax is exclusive or included.

Exclusive of VAT

It’s important to note that the price you input here does not include any applicable sales taxes, so what you see is what you get. Selecting exclusive of VAT results in VAT being imposed according to the calculation shown below when the option is selected.

Taxable Value = Rate of VAT÷100

Inclusive of VAT

In this case, the quantity or price is shown with VAT already included. Product cost and VAT amount are included in this figure. The following formula can be used to calculate the VAT included in the stated price:

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VAT amount = Value inclusive of tax X tax rate ÷ (100 + tax rate)

Taxable Value/Price = Value inclusive of tax X 100 ÷ (100 + tax rate)

What is input Vat and output VAT?

Input VAT and output VAT are essential concepts in the VAT system. Let’s look at some examples to have a better grasp on it.

Output VAT

Output Tax is the name given to the tax levied on the sale of products and services. A-One Traders, for example, sold goods for $1,00,000 plus 5% tax. A-One Traders collects a tax of 5,000 as an output vat.

Input VAT

It is referred to as “Input Tax” since it is levied on the acquisition of both products and services. A-One Traders, for instance, bought items from Jumbo Distributors valued $50,000 plus 5% tax. A-One Traders paid an Input Tax of $2,500.

How to calculate VAT payment?

A firm must pay VAT, however this does not mean that the entire amount of VAT collected on sales must be paid. Here is the formula for calculating or determining how to pay the government’s VAT.

VAT Payment = Output VAT – (minus) Input VAT

Calculate your total output VAT collected throughout the tax period and your total input VAT that is eligible for reimbursement. That’s all there is to it. Apply the calculation above once you’ve figured out your output VAT and your input VAT.

If your output VAT exceeds your input VAT, you will be responsible for the difference in VAT. If the output VAT is lower than the input VAT, a refund will be issued, and no VAT will be due as a result.

The VAT payable can be generated automatically if you so desire. TallyPrime is the best solution for automating your VAT reporting needs. VAT compliance for the United Arab Emirates, Saudi Arabia, Bahrain, and Oman is completely supported by TallyPrime’s comprehensive business management software.

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For VAT compliance, TallyPrime provides the ability to generate precise invoices, automate calculations on a variety of supply types, and more. Request a free demonstration today!

VAT Registration Criteria

There are three tax brackets in the United Arab Emirates based on the company’s annual revenue. The three slabs are :

VAT registration is required for enterprises with a revenue of more than AED 375,000/year.
VAT registration is optional for firms with yearly sales between AED 187,500/- and AED 375,000/-.
VAT registration is not required for enterprises with yearly turnover of less than AED 187,500/-.


How is the VAT calculation in UAE?

In the United Arab Emirates, there are three tax bands based on the company’s annual revenues. These are the three slabs:

More than AED 375,000 in annual revenue necessitates VAT registration.
Businesses with annual sales of between AED 187,500/- and AED 375,000/- are not required to register for VAT.
For businesses with annual turnover of less than AED 187,500/-, VAT registration is not necessary.

How do you add 5% VAT on a calculator?

In order to calculate the gross VAT amount, multiply the net amount by 1 + the percentage of VAT that is applicable to it.

How do you take VAT off a price?

To estimate VAT gross amount, divide the gross amount by 1+ VAT %, then subtract the gross amount, multiply by -1, then round it off to the nearest value.

What is VAT Calculation Formula to calculate VAT in UAE and Other Gulf Countries?

VAT amount = Value inclusive of tax X tax rate ÷ (100 + tax rate)

What is the VAT on 100?

To put it another way, for example, if the cost price of the goods or services equals AED 100, the Input VAT will be 100×5 percent = AED 5.00.

Read more on UAE VAT

UAE VAT ReturnVAT in UAEHow Does VAT System Works, Frequently Used Terms in VAT, VAT Exempt Supplies in UAEVAT Return Form 201Tax Audit under VAT in UAE, Supply under UAE VATSupply of Goods and Services in UAE VATInput Tax Recovery under VAT in UAEVAT Return Filing in UAEVAT Return Filing Period in UAETax Agent under UAE VAT

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VAT Calculator

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Input & Output VAT

Checklist for Input VAT Recovery under VAT in UAEInput VAT Adjustments in VAT Return Form 201Apportionment of Input TaxList of business expenses on which input VAT is blockedInput VAT Adjustments under Capital Assets SchemeInput VAT Recovery for Reverse Charge Supplies in VAT Form 201Output VAT adjustments

VAT Payment

VAT Payment in UAEHow to Make VAT Payment using GIBANHow to make VAT Payment to FTA in UAEVAT Payment on Import of Goods in UAEVAT Payment through e-guarantee in UAEVAT payment on commercial property in FTA Portal, VAT payment on import in FTA portal

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