Reverse VAT calculator UAE: split a gross amount

A VAT-inclusive price is 105% of the net price. To find the tax inside it, multiply the gross figure by 5 and divide by 105, which is the same as dividing by 21. To find the net price, divide the gross figure by 1.05.

Taking 5% of the gross gives the wrong answer. On a AED 1,050 receipt, 5% of the total is AED 52.50, but the VAT actually included is AED 50.00. Over a quarter of expense claims, that error inflates input tax and will not survive an FTA audit.

• VAT included = gross amount × 5 ÷ 105
• Net amount = gross amount ÷ 1.05
• Check: net + VAT should equal the gross to the fils

A fit-out contractor in Sharjah collects VAT-inclusive receipts from site staff during the week. The bookkeeper needs the net cost for the job and the VAT for the input tax claim.

• Hardware store receipt, gross AED 8,925: net AED 8,500.00, VAT AED 425.00
• Fuel for two pickups, gross AED 1,386: net AED 1,320.00, VAT AED 66.00
• Site lunch, gross AED 231: net AED 220.00, VAT AED 11.00
• Week total: gross AED 10,542, net AED 10,040.00, input VAT AED 502.00

Splitting the VAT out of a receipt does not by itself make it recoverable. Your business must be VAT registered, the expense must relate to taxable business activity, and you need a valid tax invoice from the supplier showing its TRN. Some costs, such as certain entertainment for people who are not employees, are blocked from recovery under the VAT rules.

If the supplier is not VAT registered, the receipt contains no VAT, even if the price looks like it might. Check for a TRN on the document before you reverse anything out.

Snap a receipt on the HelloBooks mobile app and the AI agent reads it, in Arabic or English, and pulls out the supplier, TRN, date and totals. Where the receipt shows a VAT figure it uses that figure; where it shows only a gross amount it applies the 5/105 split and marks the line for your review.

Nothing is claimed on your behalf. The agent posts the expense with its VAT treatment, flags receipts with no TRN, and you or your accountant approve the batch before it feeds the VAT 201 working. Firms with their own expense rules can have them configured by emailing hello@hellobooks.ai.