If you are a VAT registered importer to UAE, then you are liable to pay tax while:
- Importing taxable goods into the UAE (through reverse charge mechanism)
- Importing goods into the UAE and exporting it to another country
There won’t be any tax applicable if:
- Import of goods is made to a VAT designated zone
- Transfer of goods takes place from one VAT designated zone to another.
If you are a non-registered importer to UAE, then tax must be paid to the FTA on import and export of taxable goods. If the import of goods is made to a VAT designated zone, tax is not applicable.
Import VAT relaxations:
Certain goods under customs duty are exempted from import VAT:
- Goods entering under temporary admission to UAE
- Customs warehouse placed goods
- Transit goods
- Goods re-exported by the same person who imported.
Imports that are VAT free:
- Imported goods by internal security and military forces
- Used household items and personal effects transported from abroad by UAE nationals for the first time on moving to live in UAE
- Traveller brought gifts and personal effects
- Exports that came back to the UAE, i.e. Returned goods.
If you have any doubt regarding import of goods, call us on 00971-4-331-2332
Download VAT guide