How is VAT calculated?


The standard 5% VAT is only charged on your transaction fees, not your total payment amount. Here’s an example:

Suppose a customer pays you AED 100 using a UAE card, and you are on the Growth plan with 2.9% + AED 1. The fee charged will be AED 2.9 + AED 1 = AED 3.9.

The 5% VAT is calculated on AED 3.9 (3.9 + 0.20). This brings the total amount charged to AED 4.1.


The above calculation applies to all of Mamo Pay for Business’s payment plans. If you have further questions, please email us at

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