UAE import duty and VAT calculator
Most goods imported into the UAE pay 5% customs duty on the CIF value (cost, insurance and freight). Import VAT of 5% is then charged on the CIF value plus duty and any excise tax. VAT-registered importers account for import VAT on their VAT return and recover it, so for them only the duty is a real cost.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
Cost of the goods plus insurance and freight to the UAE.
Most goods are 5%. Some are 0% (e.g. many foods) or higher (tobacco, alcohol).
- Customs duty
- AED 2,500.00
- Value for VAT
- AED 52,500.00
- Import VAT (5%)
- AED 2,625.00
- Landed cost incl. duty and VAT
- AED 55,125.00
- Net tax cost after VAT recovery
- AED 2,500.00
Registered importers declare import VAT on their return under the reverse charge and recover it in the same return, so it is usually cash-neutral.
Results are estimates for general information, not tailored advice.
Duty and VAT at the standard 5% duty rate
No excise goods; importer VAT registered.
| CIF value | Customs duty | Import VAT (5%) | Landed cost incl. duty and VAT |
|---|---|---|---|
| AED 10,000 | AED 500.00 | AED 525.00 | AED 11,025.00 |
| AED 50,000 | AED 2,500.00 | AED 2,625.00 | AED 55,125.00 |
| AED 100,000 | AED 5,000.00 | AED 5,250.00 | AED 110,250.00 |
| AED 500,000 | AED 25,000.00 | AED 26,250.00 | AED 551,250.00 |
VAT is charged on the customs value plus duty, so it is slightly more than 5% of the CIF value.
How duty and VAT stack up
Customs duty is set by the GCC Common Customs Tariff. The general rate is 5%, many basic foods and medicines are duty-free, and tobacco and alcohol carry higher rates. Import VAT is charged on the customs value plus duty and excise, so it works out slightly above 5% of the CIF value.
- Duty = CIF value × duty rate
- VAT base = CIF + duty + excise
- Import VAT = VAT base × 5%
Registered vs unregistered importers
A VAT-registered business that links its customs code to its TRN declares import VAT in box 6 of its return and recovers it as input VAT in the same return. Unregistered importers pay VAT to customs before the goods are released and cannot recover it. Goods moving between designated free zones can be outside the scope of UAE VAT altogether.
Legal basis
- Federal Decree-Law No. 8 of 2017 on VAT
- GCC Common Customs Law and Tariff
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
Frequently asked questions
What is the customs duty rate in the UAE?
Generally 5% of the CIF value. Some goods are exempt and some, such as tobacco and alcohol, pay higher rates.
Is VAT charged on top of customs duty?
Yes. Import VAT of 5% is charged on the customs value plus duty and any excise tax.
Can I recover import VAT?
Yes, if you are VAT registered and the goods are for taxable business use. You declare and recover it in the same VAT return.
VAT registration and returns
Our FTA registered accountants register you, file every return on time and fix errors before the FTA finds them, for a fixed monthly fee.