VAT in the GCC: rates by country and how to calculate it
Quick answer
UAE and Oman charge 5% VAT, Bahrain charges 10%, and Saudi Arabia charges 15%. Qatar and Kuwait have not introduced VAT. To add VAT, multiply by 1 plus the rate; to remove it from a VAT-inclusive total, divide by 1 plus the rate - never just subtract the percentage.
- 1Confirm the country's current rate.
- 2To add VAT: price x (1 + rate).
- 3To remove VAT from an inclusive total: total / (1 + rate).
- 4Use a calculator preset to the right country to avoid mixing up rates.
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Four GCC countries currently levy VAT, each at a different rate: the UAE and Oman at 5%, Bahrain at 10%, and Saudi Arabia at 15%. Qatar and Kuwait have both signed the GCC VAT framework agreement but had not introduced a live VAT as of this review.
The two formulas that matter are the same everywhere, only the rate changes: multiply by 1 plus the rate to add VAT, divide by 1 plus the rate to remove it from a price that already includes VAT. Subtracting the percentage directly from an inclusive total is the single most common mistake - it overstates how much VAT was actually charged.
VAT rates by GCC country
| Country | VAT rate |
|---|---|
| United Arab Emirates | 5% |
| Saudi Arabia | 15% |
| Bahrain | 10% |
| Oman | 5% |
| Qatar | No VAT in force |
| Kuwait | No VAT in force |
Step by step
Confirm the country and its current rate
UAE and Oman 5%, Bahrain 10%, Saudi Arabia 15% - rates can change, so check before anything important.
Remove VAT from an inclusive total
Divide the total by 1 plus the rate - do not subtract the percentage directly.
GCC VAT Calculator
Tips
- Check whether a quoted price is VAT-inclusive or exclusive. Retail prices in the GCC are usually inclusive.
- Some supplies are zero-rated or exempt, such as certain exports or financial services. The rules differ by country.
- Keep your tax invoices. VAT-registered businesses need them to reclaim input VAT.
- Registration thresholds differ by country, so check the tax authority's current figures.
- This article is general information, not tax advice. Confirm current rules with the relevant tax authority or a qualified adviser.
Common problems
Subtracting the VAT percentage directly from an inclusive total.
Dividing 2,100 by 1.05 = 2,000 is correct; subtracting 5% of 2,100 gives 1,995, which is wrong - VAT is calculated on the pre-VAT amount, not the inclusive total.
Examples
Adding VAT in three countries
UAE: AED 1,000 x 1.05 = AED 1,050 (VAT AED 50). Saudi Arabia: SAR 1,000 x 1.15 = SAR 1,150 (VAT SAR 150). Bahrain: BHD 100 x 1.10 = BHD 110 (VAT BHD 10).
Removing VAT from an inclusive total
UAE: AED 2,100 / 1.05 = AED 2,000, so VAT was AED 100. Saudi Arabia: SAR 2,300 / 1.15 = SAR 2,000, so VAT was SAR 300.
Frequently asked questions
- What is the VAT rate in the UAE?
- 5 percent.
- What is the VAT rate in Saudi Arabia?
- 15 percent.
- Do Qatar and Kuwait charge VAT?
- As of this writing, neither has introduced VAT. Check the official tax authority for current status.
- How do I remove VAT from a VAT-inclusive price?
- Divide the total by 1 plus the VAT rate. For 5 percent, divide by 1.05.
Related related tools
- GCC VAT CalculatorPick a GCC country and add or remove VAT at its current standard rate - UAE, Saudi Arabia, Bahrain and Oman, all in one place.
- UAE VAT CalculatorAdd or remove UAE VAT - 5% standard rate pre-filled, in AED.
- VAT / GST CalculatorAdd tax to a price, or pull it back out of a price that already includes it - using the right tax name and currency for your country.
Related articles
- Money & Calculators
How to calculate VAT in the UAE
The UAE's standard VAT rate is 5%. To add it: multiply the amount by 1.05. To remove it from a VAT-inclusive total: divide by 1.05, do not simply subtract 5% - that overstates the pre-VAT amount and understates the VAT.
- Money & Calculators
VAT-inclusive vs VAT-exclusive price
A VAT-inclusive price already has tax built into the total shown. A VAT-exclusive price does not - tax is added on top at checkout or on the invoice. Converting from inclusive to exclusive means dividing by (1 + rate), not subtracting the tax percentage directly.
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