Waj

VAT Calculator

Add VAT to a price, or take it out of a total that already includes it.

The math

How we got your number

  1. VAT addedUSD 1,000 × 5%= USD 50
  2. Price with VAT addedUSD 1,000 + USD 50= USD 1,050
  3. Price before VAT, if the amount includes itUSD 1,000 ÷ (1 + 5%)= USD 952.38
  4. VAT included in the amountUSD 1,000 − USD 952.38= USD 47.62

What this number means

Adding VAT multiplies the price by the rate. Taking VAT out divides by one plus the rate, which is why 5% of a VAT-inclusive total is not the VAT inside it.

Getting tax right on every invoice matters for compliance and for customers trusting your pricing.

How to improve it

  1. 01Always show tax separately on receipts, not bundled into the price.
  2. 02Confirm your exact local rate — it can vary by product and country.

Frequently asked questions

How is VAT calculated?

To add VAT, multiply the price by the rate and add the result. At 5%, AED 1,000 becomes AED 1,050.

What are common VAT rates in the Gulf and Jordan?

The UAE and Oman charge 5% VAT, Bahrain 10% and Saudi Arabia 15%. Jordan applies a 16% general sales tax. Qatar and Kuwait have no VAT yet. Rates can change, so confirm the current one for your business.

How do I remove VAT from a price?

Divide the VAT-inclusive amount by one plus the rate. At 5%, AED 1,050 ÷ 1.05 = AED 1,000, so the VAT inside is AED 50.

Does this replace certified e-invoicing?

No — this is a quick estimate. Compliant invoicing requires a certified system for your country.

How does WAJ handle tax compliance?

WAJ supports JoFotara e-invoicing in Jordan and UAE compliance natively, and ZATCA compliance in Saudi Arabia through a certified partner.

See tax-ready invoicing in action.

WAJ supports JoFotara e-invoicing in Jordan and UAE tax compliance natively, plus ZATCA compliance in Saudi Arabia through a certified partner.