Moving goods into the UAE comes with certain costs. You need to understand these charges before you start importing.
Import tax in the UAE is not as complicated as you might think. The country has one of the most business-friendly tax systems in the region.
This guide covers everything you need to know about customs duty, VAT, and other charges when bringing goods into Dubai or any other emirate.
Whether you run a business or import goods personally, you’ll find practical information that helps you calculate costs and complete the process smoothly.
What is Import Tax in the UAE?
Import tax refers to the charges you pay when bringing goods into the UAE from other countries.
The UAE government collects these fees at the point of entry. This could be a seaport, airport, or land border.
These charges serve multiple purposes. They generate revenue for the government. They also protect local industries and regulate what comes into the country.
The good news? The UAE has some of the lowest import tax rates globally.
Most goods attract just 5% customs duty. Some items are completely exempt. Others face higher rates.
Understanding which category your goods fall into helps you budget accurately.
Who Needs to Pay Import Tax in UAE?
Businesses Importing Goods
Any company bringing products into the UAE must pay applicable import taxes.
This applies whether you’re importing raw materials, finished products, or machinery.
Your business needs to register with UAE Customs first. Without registration, you cannot clear goods.
Companies in mainland Dubai follow the same rules as those in other emirates.
Individuals and Personal Imports
Regular people importing goods also pay these charges in certain situations.
If you’re moving to the UAE and bringing household items, different rules apply.
Shopping online from international websites? You might face import charges when the package arrives.
Passengers carrying goods beyond duty-free limits must declare and pay taxes.
Types of Taxes Applicable to Imports in UAE
Customs Duties
This is the primary tax on imported goods.
The rate varies based on what you’re importing. Most items fall under the standard 5% rate.
Customs duty is calculated on the CIF value. CIF means Cost, Insurance, and Freight.
So if your product costs AED 10,000 and shipping plus insurance is AED 1,000, the total CIF value is AED 11,000.
Your customs duty would be 5% of AED 11,000, which equals AED 550.
VAT (Value Added Tax)
UAE introduced VAT in 2018 at a rate of 5%.
This applies to most imported goods on top of customs duty.
The calculation works like this: VAT is charged on the CIF value plus customs duty.
Using the previous example, you’d calculate VAT on AED 11,550 (CIF value + customs duty).
That gives you an additional AED 577.50 in VAT.
Some goods are zero-rated for VAT. Others are exempt completely.
Excise Tax
This special tax targets specific products considered harmful or luxury items.
Tobacco products carry 100% excise tax. Energy drinks face a 100% tax, too.
Carbonated drinks have a 50% excise tax. Sweetened beverages carry 50% as well.
Electronic smoking devices and their liquids face 100% excise tax.
This tax is calculated before customs duty and VAT.
General Import Duty Rate in the UAE
The standard customs duty rate in the UAE is 5%.
This applies to most commercial goods entering the country.
Compared to other countries, this rate is extremely competitive.
The GCC (Gulf Cooperation Council) maintains a unified customs tariff. This means similar rates apply across member states.
Saudi Arabia, Kuwait, Bahrain, Oman, and Qatar follow the same basic structure.
However, the 5% rate is not universal. Many exceptions exist based on product type.
How are Import Duties Calculated in the UAE?
Customs Duty Calculation Method
The calculation follows a straightforward formula.
Customs Duty = CIF Value × Customs Duty Rate
The CIF value includes three components:
- Cost of goods (invoice value)
- Insurance charges
- Freight charges to the UAE port
Let’s say you import electronics worth AED 50,000. Insurance costs AED 500. Shipping is AED 2,000.
Your CIF value = AED 50,000 + AED 500 + AED 2,000 = AED 52,500
Customs duty at 5% = AED 52,500 × 0.05 = AED 2,625
Still stuck in calculating? Try this Corporate Tax Calculator
VAT Calculation for Imports
After calculating customs duty, you add VAT.
VAT = (CIF Value + Customs Duty) × 5%
Continuing the example above:
Base for VAT = AED 52,500 + AED 2,625 = AED 55,125
VAT at 5% = AED 55,125 × 0.05 = AED 2,756.25
Total Landed Cost Breakdown
Your total import cost includes:
- Product cost
- Shipping and insurance
- Customs duty
- VAT
- Any other applicable taxes
In our example:
- Goods value: AED 50,000
- Shipping and insurance: AED 2,500
- Customs duty: AED 2,625
- VAT: AED 2,756.25
- Total: AED 57,881.25
This is your true landed cost. Factor this into your pricing if you’re reselling.
Customs Duty Rates by Product Category
Different products attract different rates.
Zero Duty Items:
- Books and educational materials
- Most medicines and medical equipment
- Basic food items
- Certain agricultural products
5% Standard Rate:
- Electronics and appliances
- Textiles and clothing
- Furniture and home goods
- Most consumer products
Higher Rates:
- Tobacco: 100% (excise) + 5% (customs)
- Alcohol: Variable rates depending on type
- Certain luxury vehicles may attract higher rates
The HS Code (Harmonized System Code) determines which rate applies.
This is an international classification system. Every product has a specific code.
Your customs broker or clearing agent helps identify the correct code.
Dubai Import Tax Payment Process
Step 1: Register with UAE Customs
Before importing anything, register with UAE Customs.
You need a valid trade license. Your business must be legally established in the UAE.
The registration process happens online through the UAE Customs portal.
You’ll receive a customs code after approval. This code is essential for all future transactions.
Step 2: Prepare Import Documentation
Gather all required documents before your shipment arrives.
Missing documents cause delays. Delays mean storage charges at the port.
We’ll cover specific documents in detail later in this guide.
Step 3: Submit Import Declaration
Your clearing agent submits a customs declaration electronically.
This declaration includes details about your shipment: what it contains, its value, origin, and more.
The system automatically calculates duties and taxes based on the information provided.
Step 4: Customs Inspection and Assessment
UAE Customs may physically inspect your shipment.
Not every shipment gets inspected. The system selects some randomly.
High-risk items face more frequent inspections.
If everything matches your declaration, the process moves forward.
Discrepancies between your declaration and actual goods cause problems. You might face penalties.
Step 5: Pay Import Taxes and Duties
Once assessed, you receive a payment demand.
Payment can be made online through the customs portal.
Most businesses use their clearing agent to handle this.
Payment must be completed before goods are released.
Step 6: Receive Clearance and Collect Goods
After payment, customs issues a release order.
You can now collect your goods from the port or have them delivered.
The entire process typically takes 1-3 days if all documents are correct.
Exceptions to the General Import Duty Rate
Excise Goods
Products under excise tax regulations face additional charges.
The excise tax is applied first, then customs duty, then VAT.
This layered taxation significantly increases the final cost.
Specific Goods with Different Duty Rates
Some items don’t follow the standard 5% rate.
Agricultural products often have reduced rates or zero duty to encourage food security.
Certain industrial machinery might qualify for reduced rates to support local manufacturing.
Luxury items sometimes face higher rates.
Free Trade Agreements (FTAs)
The UAE has free trade agreements with several countries.
These agreements reduce or eliminate customs duties on qualifying goods.
Current FTAs include agreements with:
- GCC member states
- European Free Trade Association (EFTA)
- Singapore
- India (partial)
To benefit from FTA rates, you need a proper Certificate of Origin from the exporting country.
GCC Countries Import Benefits
Goods originating from GCC countries often enjoy preferential treatment.
In many cases, products from Saudi Arabia, Kuwait, Bahrain, Oman, or Qatar face zero customs duty.
The goods must meet origin requirements. Simply shipping from a GCC country doesn’t qualify if the product was made elsewhere.
Import Tax Exemptions in UAE
Several categories qualify for complete exemption from import duties.
Personal effects and household items when you’re relocating to the UAE.
Goods imported temporarily for exhibitions or trade shows.
Re-exported goods that enter the UAE but don’t stay permanently.
Items for diplomatic missions and international organizations.
Certain humanitarian and charitable goods are approved by the authorities.
Goods entering free zones for storage or re-export.
Goods Exempt from Dubai Import Tax or VAT
Basic Food Items
Essential food products are zero-rated for VAT.
This includes items like rice, bread, milk, eggs, fresh vegetables, and fresh fruits.
Customs duty may still apply at 5%, but VAT doesn’t add to the cost.
This policy keeps basic nutrition affordable.
Medicines and Medical Equipment
Most pharmaceutical products are exempt from customs duty.
Medical equipment and devices also qualify for exemption in many cases.
You need proper documentation proving the medical nature of the goods.
Import permits from the Ministry of Health may be required.
Books, Educational Materials, and Publications
Printed books face zero customs duty.
Educational materials for schools and universities are also exempt.
This supports literacy and education across the country.
E-books and digital publications follow different VAT rules.
Relief Supplies and Donations
Goods imported for disaster relief are exempt.
Charitable donations to approved organizations don’t attract duties.
You need proper authorization from the UAE authorities.
The recipient organization must be registered and recognized.
How to Claim Import Tax Exemption in UAE
Exemption for Personal Effects
When relocating to the UAE, you can import household items duty-free.
The process requires:
- Valid residence visa
- Declaration that goods are used personal belongings
- List of items being imported
- Proof of previous residence abroad
New items or commercial quantities don’t qualify.
The exemption covers reasonable household goods for personal use.
Exemption for Industrial Machinery and Raw Materials
Manufacturing companies can apply for duty exemptions on production equipment.
Raw materials for local manufacturing may also qualify.
The Ministry of Economy evaluates applications.
You must prove the goods will be used for manufacturing, not resale.
Application Process for Tax Exemption
Start by identifying which exemption category applies to you.
Prepare supporting documents that prove eligibility.
Submit your application through the relevant authority. This could be UAE Customs or the ministry overseeing your industry.
Wait for approval before shipping goods. Importing first and applying later causes complications.
Documents Required for Importing Goods to UAE
Commercial Invoice
This document comes from your supplier.
It shows what you bought, how much you paid, and payment terms.
The invoice must be original and signed.
It should clearly state the seller’s and buyer’s details.
Product descriptions must be accurate and detailed.
Packing List
This document details how your shipment is packed.
It shows the number of boxes, the weight of each, and the contents.
Customs uses this to verify that what arrives matches what was declared.
It helps during physical inspection.
Bill of Lading or Airway Bill
This is your shipping document.
For sea freight, you get a Bill of Lading. For air shipments, an Airway Bill.
It proves ownership of the goods and provides shipping details.
You need the original copy to claim your shipment.
Certificate of Origin
This document states where your goods were manufactured.
Many countries require it for all exports.
The certificate must be issued by an authorized chamber of commerce.
It’s essential if you’re claiming FTA benefits.
Customs Code (HS Code)
Every product has a Harmonized System code.
This 6-10-digit number classifies your product internationally.
The correct HS code determines your duty rate.
Your supplier usually provides this. Your clearing agent verifies it.
Insurance Certificate
If your goods are insured during shipping, you need this certificate.
It shows the insured value of your shipment.
This value is included in your CIF calculation.
Purchase Order or Sales Agreement
Some shipments require the original purchase order.
This proves the commercial relationship between buyer and seller.
It supports the accuracy of your invoice.
VAT Registration Certificate
If your business is VAT-registered in the UAE, provide this certificate.
It allows you to claim back the import VAT you pay.
Without it, the VAT becomes a cost rather than a recoverable tax.
Import Permit (if applicable)
Certain products need special permission to import.
Medicines, medical devices, plants, animals, and some food items require permits.
The relevant UAE ministry issues these permits.
Apply for permits before shipping your goods.
Customs Valuation in UAE
What is Customs Value?
Customs value is the baseline for calculating import duties and taxes.
It represents the transaction value of your goods.
UAE follows the WTO Customs Valuation Agreement.
The primary method is the transaction value, which is the price actually paid or payable.
Transaction Value Method
This is the preferred method for determining customs value.
It uses the actual price you paid for the goods.
The price must be for sale and export to the UAE.
Certain additions may be required, like royalties or commissions.
Certain deductions are not allowed, even if shown separately on the invoice.
Components Included in Customs Value
Your customs value includes:
- Cost of goods
- Packaging costs
- Containers and packing materials
- Assists (materials provided free by buyer)
- Royalties and license fees related to the goods
- Commissions (except buying commissions)
It excludes:
- Costs after importation (like installation in the UAE)
- Transport costs within the UAE
- Customs duties and taxes
Currency Conversion for Customs Valuation
If your invoice is in a foreign currency, it must be converted to AED.
UAE Customs uses official exchange rates.
The rate applied is from the date of registration of the customs declaration.
Fluctuating exchange rates can impact your final duty amount.
How License Holders Clear Goods in the UAE
Businesses with valid UAE trade licenses can clear goods themselves.
You need to register with customs first using your trade license.
The license must cover the type of goods you’re importing.
Importing items outside your license scope requires special approval.
Most businesses hire customs clearing agents instead. These professionals handle the entire process.
They understand regulations better and complete clearance faster.
Who Can Clear Cargo Through UAE Customs?
Several parties can legally clear goods:
The importer (if registered with customs).
Licensed customs brokers who represent importers.
Freight forwarding companies with clearing licenses.
Shipping lines for their customers, in some cases.
You must provide authorization if someone else clears goods on your behalf.
This authorization is called a Power of Attorney for customs purposes.
Temporary Admission for Goods in the UAE
Exhibition Goods
Items brought for trade shows or exhibitions can enter temporarily.
You pay a security deposit instead of full duties.
The deposit is refunded when you re-export the goods.
This applies to exhibition items, display materials, and demonstration products.
Sample Products
Product samples for business purposes qualify for temporary admission.
The samples must be of nominal value.
They should be clearly marked or treated to prevent commercial use.
You must re-export samples within the approved period.
Procedure and Requirements
Apply for temporary admission before importing.
Provide details about the event or purpose.
Submit a re-export guarantee or bank guarantee.
Specify the period needed (usually matching event duration plus buffer).
Re-export within the approved timeframe to avoid penalties.
Duty Free Allowances for Passengers in the UAE
Passengers entering the UAE can bring certain items without paying duty.
Cigarettes: 400 cigarettes or 50 cigars or 500 grams of tobacco.
Alcohol: Non-Muslim passengers can bring 4 liters of alcohol or 2 cartons of beer (each consisting of 24 cans, not exceeding 355ml per can).
Personal effects: Used personal items like clothing, jewelry (for personal use).
Gifts: Items up to AED 3,000 in value.
Amounts beyond these limits must be declared and taxed.
Commercial quantities are never allowed under passenger allowances.
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Import Regulations for Specific Items
Books, Music CDs, and Media
Printed books are generally allowed with zero customs duty.
Audio and video media face screening for prohibited content.
Content must comply with UAE cultural and legal standards.
Religious materials require special approval from authorities.
Medicines and Pharmaceuticals
Personal medications for up to three months are usually allowed.
You should carry prescriptions for controlled substances.
Commercial imports of medicines require Ministry of Health approval.
Certain medications banned internationally are also prohibited in UAE.
Jewelry and Diamonds
Gold and diamond imports are allowed for business purposes.
Dubai is a major gold trading hub with established procedures.
You need proper documentation, including certificates of authenticity for diamonds.
VAT applies to gold jewelry. Pure investment gold may be exempt.
Pets and Animals
Pets need import permits from the Ministry of Climate Change and Environment.
Health certificates from the country of origin are mandatory.
Vaccination records must be current.
Some breeds are prohibited. Check the banned list before attempting import.
There’s a quarantine period for certain animals.
Uncut Diamonds
Dubai has special procedures for diamond trading.
Uncut diamonds must be declared upon arrival.
Documentation includes invoices and Kimberley Process certificates.
The Dubai Multi Commodities Centre (DMCC) oversees diamond imports.
Traders should register with DMCC for smoother transactions.
Importing to UAE Free Zones
What are Free Zones?
Free zones are designated areas with special economic regulations.
The UAE has over 45 free zones across different emirates.
Each specializes in certain industries or activities.
Popular free zones include Jebel Ali (JAFZA), Dubai Airport Free Zone (DAFZA), and Sharjah Airport International Free Zone (SAIF).
Tax Benefits in Free Zones
Goods entering free zones enjoy significant advantages:
Zero customs duty on imports into the free zone.
Zero VAT on goods remaining in the free zone.
No import restrictions for most products.
These benefits apply only while goods stay within the free zone.
Moving goods from the free zone to UAE mainland triggers normal import procedures.
How to Import Through Free Zones
Establish your company in a free zone.
Register with the free zone customs.
Import goods directly to your free zone warehouse.
You can store, repackage, or light-manufacture goods.
Export to international markets without UAE duties.
If selling to UAE market, follow standard import clearance when moving goods to the mainland.
Do All Businesses Need to Register with Customs?
Not every business requires customs registration.
You only need it if you’re directly importing or exporting goods.
Businesses that must register:
- Importers and exporters
- Customs brokers
- Freight forwarders
- Shipping companies
- Warehouse operators handling imported goods
Businesses that don’t need registration:
- Pure service providers
- Retailers buying from local distributors
- Consultancies and professional services
Even if you import occasionally, registration is required before your first shipment.
UAE Customs E-Services and Digital Systems
The UAE has modernized customs operations completely.
Everything happens digitally through integrated systems.
Key platforms include:
Dubai Trade portal for Dubai-based businesses.
FAWRI system for instant customs clearance.
Mirsal platform for trade document exchange.
eCustoms for online payment and tracking.
These systems connect with sea ports, airports, and land borders.
Real-time tracking shows exactly where your shipment is in the clearance process.
Digital systems reduce paperwork, speed up clearance, and minimize human errors.
What Goods Must Passengers Declare at UAE Customs?
Passengers must declare:
Cash exceeding AED 60,000 or equivalent in other currencies.
Goods exceeding duty-free allowances (mentioned earlier).
Commercial quantities of any item, even if individually under limits.
Restricted items like certain medications, wildlife products, or cultural artifacts.
New electronic devices beyond personal use quantities.
Gold and jewelry above personal use amounts.
Failure to declare when required can result in confiscation and fines.
Always declare if uncertain. Officers will confirm whether the duty applies.
Customs Value Verification and Documentation
Evidence Required to Verify Price
Customs may question your declared value.
They can request additional proof:
- Bank transfer documents showing payment
- Purchase orders matching the invoice
- Previous import records for similar goods
- Supplier’s catalog or price list
- Market price data for the product
Keep comprehensive records. Transparent documentation prevents delays.
Related Persons and Transfer Pricing
If the buyer and seller are related companies, customs scrutinize the value more carefully.
Related persons include:
- Parent and subsidiary companies
- Companies under common ownership
- Family members
The transaction value is still acceptable if the relationship didn’t influence the price.
You may need to prove the price matches arm’s-length market rates.
Discounts and Their Treatment
Genuine trade discounts are acceptable if documented properly.
The discount must be reflected in the actual price paid.
Retroactive discounts after import don’t reduce customs value.
Volume discounts, early payment discounts, and promotional discounts are recognized if properly proven.
If you are feeling stuck to get TRN in the United Arab Emirates?
Special Valuation Cases in UAE Customs
Used Machinery Valuation
Used equipment is valued based on actual transaction value.
Age and condition are not automatically deducted unless reflected in the sale price.
Professional valuations may be requested for customs purposes.
Depreciation from accounting records doesn’t apply to customs valuation.
Goods Exported for Repair
Items sent abroad for repair and returned face duty only on the repair cost.
You must prove the goods were originally in the UAE.
Documentation should show what repairs were done and their cost.
The original goods value is not taxed again.
Replacement Goods
Replacement items supplied free due to warranty or defects need special treatment.
If no charge was made, customs determines the value based on identical or similar goods.
Documentation proving the replacement nature helps.
Software and Carrier Media
Software on physical media (CDs, USB drives) has special valuation rules.
Duty applies to the carrier medium value, not the software itself.
The value of the CD or USB is taxed, not the millions of dollars of software it contains.
Software delivered electronically isn’t subject to customs duty at all.
Royalties and License Fees
Royalties paid as a condition of sale must be added to the customs value.
This includes trademark fees, patent fees, and licensing costs.
The royalty must relate to the specific goods being imported.
General corporate licensing agreements may not need inclusion.
Free Packed Additional Goods
Extra items provided free with a purchase need declaration.
If promotional items are marked “not for resale” and have nominal value, they may be exempt.
Significant value items packaged together are added to the customs value.
What Happens if Customs Doubts Your Declared Value?
Verification Procedure
Customs officers can reject your declared value if they have a reasonable doubt.
They must communicate their concerns to you in writing.
You get an opportunity to provide additional evidence.
If you cannot prove your value, customs will determine value using alternative methods.
These methods include:
- Transaction value of identical goods
- Transaction value of similar goods
- Deductive method (based on selling price in the UAE)
- Computed method (based on production cost)
- Fall-back method
Your Rights as an Importer
You have the right to be informed why your value was rejected.
You can request the basis for the alternative valuation method used.
You’re entitled to explain and provide evidence supporting your declared value.
Appeal Process
If you disagree with the customs valuation decision, you can appeal.
The appeal must be submitted within specific timeframes.
First-level appeals go to the customs department director.
Further appeals can go to the Customs Disputes Committee.
Final recourse is through the UAE courts.
Keep all documentation. The burden of proof typically rests with you.
How to Reduce Import Costs Legally in the UAE
Use Free Trade Agreements: Source from countries with FTA benefits.
Correct HS Code Classification: Ensure accurate coding. Some similar products have different rates.
Leverage Free Zones: Import to free zones first if you’re re-exporting or processing goods.
Claim Applicable Exemptions: Don’t pay for exemptions you qualify for.
Negotiate Terms: Use DDP (Delivered Duty Paid) terms where suppliers handle import costs.
Consolidate Shipments: Larger, less frequent shipments reduce overall logistics costs.
Proper Documentation: Correct papers the first time to avoid penalties and storage fees.
Register for VAT: Reclaim import VAT if you’re running a taxable business.
Common Mistakes to Avoid When Importing to the UAE
Under-declaring value: This seems like saving money, but it leads to heavy penalties.
Wrong HS codes: Incorrect classification can mean wrong duty rates or compliance issues.
Incomplete documentation: Missing papers cause delays and storage charges.
Ignoring import permits: Some goods need pre-approval. Importing first causes seizure.
Poor packaging: Damaged goods still incur duties, but are worthless to you.
Not using professionals: DIY customs clearance without knowledge creates expensive problems.
Missing deadlines: Late collection from ports incurs daily storage fees.
Assuming all items are allowed: Check prohibited and restricted lists first.
Penalties for Non-Compliance with UAE Import Regulations
UAE takes customs violations seriously.
Under-declaration or false information: Fines equal to 1-4 times the duty evaded.
Smuggling: Goods confiscated, plus fines and potential imprisonment.
Importing prohibited items: Confiscation, fines, and legal prosecution.
Late payment: Interest charges on outstanding duties.
Failure to declare: Fines based on the violation severity.
Repeat offenders face harsher penalties.
Customs violations also damage your business reputation and can affect future clearances.
Typical Timeline for Customs Clearance
Standard clearance: 1-3 working days when all documents are correct.
Express clearance: Same day or next day for compliant, low-risk shipments.
Delayed clearance: 5-10 days or more if documents are missing or an inspection is required.
Factors affecting speed:
- Completeness of documentation
- Accuracy of declaration
- Whether physical inspection is required
- Type of goods
- Your compliance history
- Payment speed
Using experienced clearing agents and preparing documentation properly minimizes delays.
Tax Implications for Different Business Types
Mainland Companies: Pay full import duties and VAT. Can reclaim VAT if registered.
Free Zone Companies: Zero duty and VAT while goods stay in the free zone. Normal rates when moving to the mainland.
Designated Zone Entities: Some special zones have unique rates.
Individual/Sole Traders: Same rates as companies, but may face stricter verification.
Government Entities: May qualify for exemptions on official purchases.
NGOs and Charities: Possible exemptions with proper authorization.
Each business structure has specific compliance requirements beyond just the tax rates.
UAE Import Regulations: Recent Updates
The UAE continuously modernizes its import system.
Recent changes include:
Enhanced digital integration across all customs points.
Stricter enforcement of under-declaration.
Expanded free trade agreement network.
New regulations on e-commerce imports.
Updated prohibited and restricted items lists.
Advanced data requirements for certain high-risk categories.
Improved fast-track programs for trusted traders.
Stay updated through official UAE Customs announcements and trade portals.
Regulations can change. What was correct last year might not apply now.,
Your Next Steps for Importing to the UAE
Understanding import tax in the UAE puts you ahead of most new importers.
The system is straightforward once you know the rules.
Start by identifying what you want to import. Check if it requires special permits. Determine the correct HS code. This tells you the exact duty rate. Calculate your total landed cost, including all taxes and fees. Price your products accordingly. Choose whether to handle customs yourself or hire a professional clearing agent.
Register with UAE Customs if importing regularly. Prepare complete documentation before goods arrive. Stay compliant. Accurate declarations and timely payment save money and trouble. The UAE’s business-friendly environment makes importing easier than in many countries. Take advantage of low duty rates, efficient digital systems, and excellent infrastructure.
Whether you’re shipping a container of electronics or importing machinery for your factory, this guide gives you the foundation.
For complex situations, consult with DgTx consultants.
Start your import journey with confidence. The UAE welcomes international trade and makes the process as smooth as possible.
Frequently Asked Questions About UAE Import Tax
Yes, in some cases, you can request provisional release. You’ll need to provide a financial guarantee covering potential duties. Once customs makes the final decision, they’ll either return the guarantee or collect from it.
No, the entire registration process is online. You submit documents through the UAE Customs portal. Approval comes electronically. You only visit offices if there’s a problem with your application or for appeals.
Jewelry valuation depends on the material. Gold is valued by weight at current market rates plus craftsmanship charges shown on the invoice. Diamonds need certificates showing quality grades. Precious stones are valued based on invoices and market prices. Costume jewelry follows normal product valuation rules.
A free zone company can issue invoices if it’s properly established and has the authority. You need a written authorization from the parent company. The invoice should clearly state the relationship. Customs may request proof of authorization and that the free zone company is genuinely involved in the transaction.
Late payment triggers interest charges on the outstanding amount. Your goods remain held at the port or warehouse. Daily storage fees accumulate. After a certain period, customs may auction your goods to recover duties. Your customs account may be flagged, causing issues with future imports.
The legal importer is responsible for payment. If you’re the importer of record, you must pay. You can negotiate with your buyer to reimburse you later. DDP (Delivered Duty Paid) terms mean the seller pays all import costs before delivery. But the consignee shown on customs documents is ultimately liable.
UAE Customs applies the official exchange rate on the date you register your customs declaration. You cannot choose favorable historical rates. Currency fluctuation is a business risk in importing. Some importers hedge currency risk separately. Lock in prices with suppliers in AED when possible.
Generally, import duties paid are not refunded if you return goods. However, if you re-export the goods and can prove they’re the same items, you may claim a refund. The process requires documentation showing the re-export and original import payment. Time limits apply for refund claims.
You can show that the price closely matches what unrelated buyers pay for identical goods. Market analysis comparing your price to arm’s length transactions helps. Demonstrate that the pricing follows transfer pricing policies. Show that the price covers costs plus normal profit margins. Professional transfer pricing documentation strengthens your case.
Yes, VAT is calculated on the total of CIF value plus customs duty. This means you’re paying tax on tax. The formula is: VAT = (CIF + Customs Duty) × 5%. This is standard practice following international customs procedures. If you’re VAT registered for business, you can reclaim this VAT.
VAT-registered businesses making taxable supplies can reclaim import VAT. You declare the import VAT on your VAT return. It appears as both output tax and input tax, effectively neutralizing for eligible businesses. Keep all customs payment receipts and clearance documents. Non-registered businesses or those making exempt supplies cannot reclaim.
