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Everything you need to know about Imports under VAT in the UAE: FAQs

Everything you need to know about Imports under VAT in the UAE: FAQs

FAQ6 min read | Posted on April 5, 2024 | By Zoho Books Team

Are imports taxed?

Yes, goods imported into the UAE will be subject to 5% VAT starting on January 1st, 2018.

Note: Import of precious metals is taxed at 0%.

Under what conditions are imports taxed?

All the goods and services imported from abroad are taxed under the VAT regime.

If the recipient in UAE is registered under the VAT regime, they would have to pay VAT under the reverse-charge mechanism.
If the recipient in UAE is not registered under the VAT regime, the VAT due should be paid on the import from outside the GCC. In this case, the tax should be paid before the goods are delivered to the recipient.

When should an importer pay VAT?

The importer is due to pay VAT as soon as they submit the tax return. The returns must be filed within 28 days after the end of the tax period in which the import happened.

How is VAT calculated for imported goods?

VAT is calculated on the value of imported goods as follows:

For low-value shipments (less than or equal to custom declared value of AED 1000):

Customs value, Insurance, Freight (CIF) x 5%

For high-value consignments (customs declared value exceeds AED 1000):

(Freight (CIF)+ Excise tax + Customs Duty + Customs Fees) x 5%

If I re-import goods to the UAE that I had previously returned to their country of origin, should I pay VAT?

No, VAT is not applicable in this case.

I am a UAE national who has been living abroad. If I decide to move back to the UAE and import my used personal and household items, will I pay VAT?

No, VAT is not applicable in this case.

I am a non-UAE national moving to the UAE for the first time. If I import my personal and household items, will I pay VAT?

No, VAT is not applicable in this case.

Do military and internal security forces need to pay VAT when importing taxable goods into the mainland?

No, VAT is not applicable in this case.

Can I recover the input tax paid on imports?

Yes, you can recover the input tax paid on imports if you’re registered with the FTA and have a Tax Registration Number (TRN).

My firm is located in a free zone. Is VAT applicable on goods imported into a free zone in the UAE?

If your firm is located in a free zone that is not listed as a designated zone, then the imports will be taxed based on their value.

Will I be penalized if I fail to pay VAT on the import of goods?

Yes, you will be penalized if you fail to pay VAT on imported goods. Also, those goods would be withheld by the Customs Authorities.

What are some goods exempted from VAT on import?

Goods imported by military and internal security forces
Personal belongings and gifts carried by tourists when they visit the UAE (they should be non-commercial goods)
Personal belongings or household items transported into the UAE by UAE nationals or expats (the goods should already be in use)
Returned goods (When goods exported from the UAE are returned or when goods that were sent for repair or completion are brought back to the UAE)

How do I provide an e-Guarantee?

Submit your customs declaration.
Log in to the FTA e-services portal.
Access the VAT Payment form.
Fill in the Customs Authority, Declaration Number & Declaration Date.
Obtain an e-Guarantee from First Abu Dhabi Bank equal to the VAT due based on the calculation in the portal.
Fill in the e-Guarantee number and submit the form.
After the goods leave UAE, log in to the FTA e-services portal.
Open the e-Guarantee cancellation form.
Fill in the required details (including proof of export, export declaration number and the e-Guarantee number).
Submit the form.

If I import goods from outside the UAE, should I include my TRN in the tax invoice?

It is not mandatory by law to mention your TRN but it is advisable to include it as it helps during tax audits. For example, if you don’t have your organization’s name spelled correctly on the invoice and the TRN is not mentioned either, it might be an issue during tax auditing.

How do I link my TRN to my importer code?

Log in to the Dubai Trade Website using your user name and password. Under the ‘User management’ section, go to the ‘VAT profile’ tab. Follow the steps there to link your M2 importer code to your TRN.

Do travellers pay VAT on items they bring into the UAE?

If the value of the goods is under 3000 AED, VAT is not applicable on the items they bring in to the UAE.

I import taxable goods into the UAE. Do I need to pay VAT?

Yes, you must pay VAT on these goods at the time you submit your tax returns. The taxable goods will also be subjected to customs and other additional duties at the time of import.

This applies only to VAT-registered importers.

I import taxable goods into the UAE and then export them to another country. Do I need to pay VAT?

Yes, you must pay VAT on these goods at the time you submit your tax returns. The taxable goods will also be subjected to customs and other additional duties at the time of import.

This applies only to VAT-registered importers.

I transfer taxable goods from one designated zone into another. Do I need to pay VAT?

No, VAT is not applicable in this case. Designated zones are treated as places outside the UAE.

This applies only to VAT-registered importers.

I import taxable goods into a VAT designated zone. Do I need to pay VAT?

No, VAT is not applicable in this case. Designated zones are treated as places outside the UAE.

This applies only to VAT-registered importers.

I import taxable goods into the UAE mainland. Do I need to pay VAT?

Yes, you must pay VAT on the import. The taxable goods will also be subjected to customs and other additional duties at the time of import.