VAT is an indirect tax imposed on goods and services at each stage of production and distribution.

What's the difference between add and extract?

Add calculates VAT on top of the amount, while extract separates VAT already included in the amount.

VAT Calculator

Add or extract VAT from any amount

Amount

EGP

VAT Rate

VAT Rates — Arab World

Country	Rate	Since
🇪🇬Egypt	14%	2017
🇸🇦Saudi Arabia	15%	2020
🇦🇪UAE	5%	2018
🇧🇭Bahrain	10%	2022
🇯🇴Jordan	16%	1994
🇲🇦Morocco	20%	1986
🇹🇳Tunisia	19%	1988
🇰🇼Kuwait	0%	—
🇶🇦Qatar	0%	—
🇴🇲Oman	5%	2021

Click any country row to apply its rate

Result

Total Amount

EGP

Original Amount

VAT Amount

VAT Calculator: How to Calculate Value Added Tax

Value Added Tax (VAT) is an indirect tax levied on most goods and services at each stage of production, distribution, and sale. The final consumer ultimately bears the full tax burden through the price they pay.

VAT Rates Across the Region

Rates vary significantly across Arab countries:

**Egypt:** 14% on most taxable goods and services
**Saudi Arabia:** 15% (raised from 5% in 2020)
**UAE:** 5%
**Bahrain:** 10%
**Jordan:** 16% general sales tax
**Lebanon:** 11% (subject to change)

How to Add VAT to a Price

**If you know the pre-tax price:** Final price = Original price × (1 + tax rate)

**Egypt example (14%):** Product price = EGP 1,000 Tax = 1,000 × 14% = EGP 140 **Final price = EGP 1,140**

How to Extract VAT from a Total Price

Sometimes you know the total price (VAT-inclusive) and need to find the embedded tax:

Original price = Total price ÷ (1 + tax rate) Tax = Total price − Original price

**Example:** You paid EGP 1,140 in Egypt Original price = 1,140 ÷ 1.14 = EGP 1,000 **Embedded tax = EGP 140**

Exempt and Zero-Rated Items in Egypt

Not all goods are subject to 14%; some are fully exempt and others receive special treatment.

**Exempt from VAT:** - Bread, flour, and subsidized staple goods - Medicines and certain medical supplies - Government, educational, and religious services - Exported goods and services (zero-rated)

**Subject to VAT:** - Telecommunications and internet services - Most restaurants and hotels - Cars and electronics

Tips for Businesses

VAT registration is mandatory once turnover exceeds the registration threshold
Keep purchase invoices to reclaim input tax paid on your purchases
Issue proper tax invoices to customers to avoid penalties

FAQ

What is the VAT rate in Egypt?▼

Egypt's VAT rate is 14% on most taxable goods and services. Some goods are fully exempt (such as bread and medicines) and certain services receive special tax treatment.

How do I extract the tax amount from a total price I already paid?▼

Divide the total amount by (1 + tax rate). Example: you paid SAR 570 in Saudi Arabia (15%). Original price = 570 ÷ 1.15 = SAR 495.65. Tax = 570 − 495.65 = SAR 74.35.

What items are exempt from VAT in Egypt?▼

Key exemptions include: subsidized staple foods (bread, flour), medicines and many medical supplies, educational, religious, and government services, and exported goods (zero-rated).

Does every business have to register for VAT?▼

No. Registration is mandatory only when turnover exceeds the legally set registration threshold. Below that threshold, voluntary registration is possible to enable input tax recovery. Check the applicable tax law in your country.

Why do VAT rates differ among Gulf countries?▼

Although GCC countries agreed on a unified VAT framework, the agreement allowed each state to set its own rate within a defined range. Saudi Arabia raised its rate to 15% for fiscal reasons, while the UAE maintained 5% to support its competitive business environment.

Results are approximate and for educational purposes only, not financial or legal advice. Consult a certified financial advisor before making financial decisions.