VAT formulas
To add VAT: multiply the net amount by 1.05. On AED 1,000, VAT is AED 50 and the total is AED 1,050.
To remove VAT from a VAT-inclusive amount: divide the total by 1.05. On AED 1,050, the net amount is AED 1,000 and VAT is AED 50.
When this calculator helps
Use it when checking supplier invoices, quoting a VAT-inclusive price, reviewing a sales receipt, or estimating the VAT component of a transaction before reconciling it.
Educational note: This calculator only handles simple 5% VAT arithmetic. It does not decide whether a transaction is standard-rated, zero-rated, exempt, out of scope, or reverse charge.
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