Ammonia stands out as a significant breath biomarker for kidney-related diseases. Here we present the fabrication of a gold (Au) decorated V2O5 based sensor designed for detecting ammonia at parts per billion (ppb) level. The V2O5 particles were synthesized by thermal decomposition of ammonium metavanadate (NH4VO3) instead of using tedious and expansive synthesis routes. The product of the thermal decomposition of NH4VO3 was characterized utilizing various analytical techniques. Then this product (V2O5) was used for gas sensing study as original and when decorated with gold. The V2O5 based sensor, decorated with gold (Au) for a duration of 10 s, exhibits favorable characteristics including a linear response range spanning 50–5000 ppb, heightened sensitivity, stability, and remarkable resistance to humidity within the range of 50–90 % relative humidity (RH). Remarkably, the sensor demonstrates insensitivity towards higher concentrations of possible interfering liquid vapors. The sensor exhibits response and recovery times of 36 s and 300 s, respectively, in the presence of 1000 ppb ammonia and has the potential for accurately detecting and quantifying ammonia in an environment resembling human exhaled breath. The sensing device based on this material will be a valuable tool for clinical applications.