A trading company can calculate Value Added Tax (VAT) on its taxable supplies of goods and services using the standard VAT rate of 5%.

Here is a general guide to calculating VAT in the UAE:

1. Determine the taxable supplies: The first step is to determine which goods and services are subject to VAT. In general, all goods and services that are not exempt or zero-rated are subject to VAT.
2. Determine the VAT-inclusive price: Once the taxable supplies have been identified, the next step is to determine the VAT-inclusive price. This can be done by adding the VAT rate of 5% to the net price of the goods or services.
3. Determine the VAT-exclusive price: To calculate the VAT component, the VAT-exclusive price needs to be determined. This can be done by dividing the VAT-inclusive price by 1.05 (i.e., 1 + 5% VAT rate).
4. Determine the VAT amount: The VAT amount is the difference between the VAT-inclusive price and the VAT-exclusive price.
5. Prepare VAT invoices and returns: A trading company must issue VAT invoices for all taxable supplies and maintain accurate records of all VAT transactions. The company must also file VAT returns on a regular basis and pay the VAT due to the Federal Tax Authority (FTA).

It is important for trading companies to ensure that they are properly calculating and paying VAT to avoid penalties and legal consequences. It is also advisable to seek the guidance of a tax professional or an accounting firm to ensure compliance with VAT regulations in the UAE.