VAT (Value Added Tax) is a consumption tax collected at every stage of the supply chain. Whether you are a freelancer in Dubai issuing a VAT invoice, a shopper in Bahrain working out how much VAT is buried in a price, or an accountant reconciling Saudi VAT returns — you need a quick, reliable calculator.
This guide explains how VAT works across GCC and major global markets, when to add vs remove VAT, and how to use the calculator for common real-world scenarios.
VAT rates at a glance: GCC + major markets (2026)
| Country | Rate | Currency | Notes |
|---|---|---|---|
| 🇦🇪 UAE | 5% | AED | Introduced Jan 2018, Federal Decree-Law No. 8/2017 |
| 🇸🇦 Saudi Arabia | 15% | SAR | Tripled from 5% in Jul 2020 as COVID fiscal measure |
| 🇧🇭 Bahrain | 10% | BHD | Doubled from 5% in Jan 2022 |
| 🇴🇲 Oman | 5% | OMR | Effective Apr 2021, newest GCC VAT country |
| 🇶🇦 Qatar | 0% | QAR | No VAT as of 2026 |
| 🇰🇼 Kuwait | 0% | KWD | No VAT as of 2026 |
| 🇬🇧 UK | 20% | GBP | Standard rate; reduced 5% for energy/hospitality |
| 🇩🇪 Germany | 19% | EUR | Reduced 7% for food, books, public transport |
| 🇫🇷 France | 20% | EUR | Reduced 5.5% for food, 10% for restaurants |
| 🇦🇺 Australia | 10% | AUD | GST; food, health, education exempt |
| 🇸🇬 Singapore | 9% | SGD | GST, raised from 8% in Jan 2024 |
| 🇮🇳 India | 18% | INR | GST standard slab; 5%, 12%, 28% also apply |
Add VAT vs Remove VAT — what is the difference?
The two most common VAT questions are opposite sides of the same coin:
- Add VAT (net → gross): You have a net price and need to know the customer-facing price including VAT. Example: product costs AED 100 net → gross = 100 × 1.05 = AED 105.
- Remove VAT (gross → net): You have a VAT-inclusive price and need to extract the net amount. Example: Bahrain bill shows BHD 33 — net = 33 ÷ 1.10 = BHD 30, VAT = BHD 3.
The most common mistake is subtracting the percentage directly: 100 − 10% = 90. That is wrong. The correct reverse-VAT formula is: net = gross ÷ (1 + rate/100).
Step-by-step examples
Example 1 — Adding 5% UAE VAT to a consultancy invoice
A UAE consultancy raises an invoice for AED 8,500 (net). The client will pay:
Net amount: AED 8,500.00
VAT at 5%: AED 425.00
Gross total: AED 8,925.00In the calculator: enter 8500, direction Add VAT, country UAE → done.
Example 2 — Removing 15% Saudi VAT from a supermarket receipt
A Saudi supermarket receipt shows SAR 230. What is the net price?
Gross amount: SAR 230.00
VAT at 15%: SAR 30.00 (= 230 ÷ 1.15 × 0.15)
Net amount: SAR 200.00 (= 230 ÷ 1.15)In the calculator: enter 230, direction Remove VAT, country Saudi Arabia → net = SAR 200.
Example 3 — Bahrain 10% VAT on a restaurant bill
Dinner bill in Manama: BHD 44. How much is VAT?
Gross: BHD 44.000
Net: BHD 40.000 (44 ÷ 1.10)
VAT (10%): BHD 4.000Example 4 — Custom rate (Singapore GST check)
Singapore raised GST from 8% to 9% in January 2024. If you are calculating a 2023 receipt at 8%, use the custom rate field in the calculator instead of the preset.
GCC VAT: key facts for businesses
GCC countries implemented VAT as part of a 2016 framework agreement. While Qatar and Kuwait have not yet enacted VAT legislation, the remaining four countries (UAE, Saudi Arabia, Bahrain, Oman) all have active VAT regimes with registration thresholds, invoice requirements, and quarterly/annual filing obligations.
- UAE: Registration threshold AED 375,000 annual turnover. Filing: quarterly or monthly.
- Saudi Arabia: Registration threshold SAR 375,000. VAT group filing allowed for related entities.
- Bahrain: Registration threshold BHD 37,500 (≈ USD 100,000). Monthly filing.
- Oman: Registration threshold OMR 38,500. Quarterly filing; VAT exemptions for financial services.
VAT is charged on most goods and services. Notable zero-rated or exempt categories across GCC include: basic foodstuffs, international transport, new residential property, and healthcare/education.
How to use the VAT Calculator
- Enter the amount — net or gross, the calculator handles both directions.
- Choose Add or Remove VAT — adds VAT to a net price, or strips VAT from a gross price.
- Select your country — the calculator preloads the correct rate and currency.
- Override with a custom rate — use the custom rate field if your goods are zero-rated, reduced-rate, or you need a historical rate.
- Copy or export — hit Copy to copy the result as text, or Export CSV for a spreadsheet-ready breakdown.
Frequently asked questions
Is there VAT in Dubai? Yes. Dubai follows UAE federal VAT at 5%, introduced on 1 January 2018. It applies to most goods and services, with zero-rating for healthcare, education, and exports.
Does Qatar have VAT? Not as of 2026. Qatar has repeatedly delayed VAT implementation. Use a custom rate of 0% in the calculator if you need a placeholder.
How is Bahrain VAT different from Saudi VAT? Bahrain is at 10%, Saudi Arabia at 15%. Bahrain applies VAT to most services including financial services (at a reduced rate), while Saudi Arabia has broader exemptions for financial services.
Can I use this for UK VAT returns? The calculator shows the correct gross/net/VAT split. For formal VAT return filing you will still need HMRC-compatible accounting software, but this calculator is useful for checking individual transactions.
What is the reverse VAT formula? Net = Gross ÷ (1 + rate/100). For 20% UK VAT: Net = Gross ÷ 1.20. For 15% Saudi: Net = Gross ÷ 1.15. The calculator does this automatically.
Calculate VAT instantly — free →Related tools: GST Calculator India · Salary Calculator · Currency Converter · Percentage Calculator