Key points
- Duty = 5% × CIF in AED; VAT = 5% × (CIF + duty + excise).
- A standard 5% line costs 10.25% of CIF in duty and VAT combined.
- VAT-registered importers with a linked customs code reverse-charge the VAT in their return.
- Exempt lines pay 0% duty; tobacco pays 100%; free zones, transit and re-export suspend duty.
- Fees (declaration, MOFA attestation) and port charges come on top.
The formula in one line
The UAE applies the GCC common external tariff. Duty is charged once, at the first GCC point of entry, on the customs value, which in practice is the CIF value converted to dirhams at the customs exchange rate. Import VAT is then charged on that value plus the duty plus any excise tax. Your 12-digit HS code decides whether the line is 5%, exempt or higher, so the broker confirms it before you rely on any figure.
- Build the CIF valueAdd the invoice value, the freight and the insurance to the first UAE port. On FOB or EXW purchases, use the real freight and insurance invoices; if they are missing, customs may add a standard amount.
- Convert to dirhamsCustoms uses its own exchange rate; the dirham is pegged at about 3.6725 to the US dollar.
- Find the rateCheck the 12-digit HS line: 5% for most goods, 0% for exempt lines, 100% for tobacco.
- Calculate dutyMultiply the CIF value in AED by the duty rate.
- Add excise if anyTobacco, e-cigarettes, energy drinks and sweetened drinks carry excise, which enters the VAT base.
- Calculate VATMultiply CIF plus duty plus excise by 5%. Pay it at customs, or reverse-charge it if you qualify.
- Add feesAdd the declaration fee and MOFA attestation (AED 150 per invoice of AED 10,000 or more, and per certificate of origin).
Most goods from China pay 5% GCC duty on CIF, once, at the first GCC entry. VAT is on CIF + duty. Estimate only.
Worked examples in AED
| Scenario | CIF (AED) | Duty 5% (AED) | VAT 5% (AED) | Paid to customs (AED) |
|---|---|---|---|---|
| FOB USD 20,000 plus USD 2,000 freight and insurance; importer not VAT-linked | 80,795.00 | 4,039.75 | 4,241.74 | 8,281.49 plus fees |
| Same goods; VAT-registered importer with code linked to TRN | 80,795.00 | 4,039.75 | 4,241.74, reverse-charged | 4,039.75 plus fees |
| CIF Jebel Ali invoice of USD 10,000 | 36,725.00 | 1,836.25 | 1,928.06 | 3,764.31 plus fees |
| Duty-exempt HS line, CIF AED 50,000 | 50,000.00 | 0.00 | 2,500.00 | 2,500.00 plus fees |
The examples use 3.6725 AED per USD. The freight and insurance figures are assumptions for the arithmetic, not rates; our team quotes real freight within one working day. VAT in the first row is 5% of 84,834.75, the CIF plus duty. In the last row the goods pay no duty but VAT still applies, unless a specific VAT relief or zero rate covers them, which your tax advisor confirms. Fees on top typically include the Dubai declaration fee, reported at about AED 70 for dutiable goods plus a AED 20 Knowledge and Innovation fee, and MOFA attestation.
Reverse charge: when VAT is not paid at the border
- Your company is VAT-registered and its customs code is linked to its TRN in EmaraTax.
- Customs releases the goods without collecting the 5% VAT.
- You declare the import VAT in your VAT return and normally recover it there, so the net cash effect is usually zero.
- You still pay duty and fees at the border.
- Customs collects the 5% VAT before release.
- A registered importer that forgot the link pays VAT upfront and recovers it later, which ties up cash.
- A non-registered importer cannot recover it, so VAT becomes a real cost.
- Fix the link before the next shipment arrives.
- Some free zones are VAT designated zones, where imports into the zone can carry no VAT.
- Duty is suspended while goods stay in a free zone.
- Duty and VAT apply when goods move into the mainland.
- The rules are technical, so confirm with your tax advisor.
Exemptions and duty suspensions
- Exempt tariff lines: the GCC union schedule lists 417 exempt items, including many basic foods, medicines and medical equipment, some agricultural inputs, and books and printed matter. Confirm by HS code.
- Exemptions under the customs law for diplomatic, military and charity goods, personal effects and returned goods, subject to conditions.
- Free zones such as JAFZA and KEZAD: duty is suspended while goods are stored or re-exported, and paid only when they enter the mainland.
- Transit and import for re-export: a deposit or guarantee is held instead of duty and released on proof of exit.
- Temporary admission for exhibitions, projects, testing or repair, against a deposit, guarantee or ATA carnet.
- Cross-border e-commerce into Dubai valued at AED 1,000 or less is exempt from customs duty since 3 August 2026 (Customs Notice 16/2026), except tobacco, e-smoking devices, nicotine liquids, alcohol and food containing alcohol. The notice does not mention VAT, so assume VAT still applies; normal sea freight to a trading company follows standard rules.
Excise goods: tobacco, energy drinks and sweetened drinks
| Product | Customs duty | Excise tax | Note |
|---|---|---|---|
| Tobacco and tobacco products | 100% | 100% | Excise registration needed |
| E-cigarettes and nicotine liquids | Per HS code | 100% | Not covered by the e-commerce exemption |
| Energy drinks | Per HS code | 100% | Excise registration needed |
| Sweetened drinks, 8 g sugar or more per 100 ml | Per HS code | AED 1.09 per litre | Sugar-based tiers since 1 January 2026 |
| Sweetened drinks, 5 g to under 8 g per 100 ml | Per HS code | AED 0.79 per litre | Needs MOIAT conformity certificate and lab report |
| Under 5 g sugar, or artificial sweeteners only | Per HS code | Exempt | Without an approved certificate, the top band applies |
From duty to landed cost
Duty and VAT are only part of what a container costs on arrival. Landed cost adds the goods, sea freight and insurance, duty, any VAT you cannot recover, customs and attestation fees, and destination charges such as the delivery order fee, terminal handling, trucking and any storage or demurrage after free time. Duty is paid once in the GCC: if you later truck duty-paid goods from Dubai to Oman, Oman should not charge duty again when you show proof, but VAT is charged in the destination state. Our customs clearance guide explains when each fee is paid.
Most goods from China pay 5% GCC duty on CIF, once, at the first GCC entry. VAT is on CIF + duty. Estimate only.
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Frequently asked questions
How is import duty calculated in the UAE?
Duty is the CIF value in dirhams, meaning goods plus freight and insurance to the first UAE port, multiplied by the tariff rate. For most goods the rate is 5%.
Is VAT charged on top of customs duty?
Yes. Import VAT is 5% of the CIF value plus the duty plus any excise tax, so a standard 5% line carries 10.25% of CIF in duty and VAT combined.
What is the customs duty on goods from China to Dubai?
Usually 5% of CIF under the GCC common tariff, with 0% for exempt lines and 100% for tobacco. We could not confirm a China–GCC free trade agreement in force as of November 2026.
Are shipments under AED 1,000 duty-free in Dubai?
Only cross-border e-commerce goods through registered channels, since 3 August 2026, and not tobacco, vapes or alcohol. VAT may still apply, and normal commercial cargo pays standard duty.
Can I get the import VAT back?
A VAT-registered importer with its customs code linked to its TRN reverse-charges the VAT and normally recovers it in the VAT return. A non-registered importer pays it at customs as a cost.
Do I pay duty again if I send the goods on to Oman or Saudi Arabia?
Under the GCC single entry point, duty paid in the UAE should not be charged again if you show proof. VAT is charged in the destination state, and transit avoids UAE duty altogether.
Sources
- UAE ICP – The Concept of the GCC Customs Union (5% tariff, 417 exempt items, tobacco 100%, single entry point)
- UAE Government portal – FTA guide for importers (VAT on imports, registered and non-registered importers)
- Dubai Customs – Customs Notice 16/2026 (e-commerce duty exemption up to AED 1,000)
- UAE FTA – Conformity certificates required to avoid the high-sugar excise band
- Gulf News – UAE sugar tax from 1 January 2026
- UAE MOFA – Attestation of commercial invoices via eDAS 2.0
- Deloitte – Dubai Customs implements expanded 12-digit tariff code
- UpperSetup – UAE import customs and import VAT in 2026 (secondary: declaration fees, reverse charge, self-invoice change)
General information checked on the date shown. Rules and rates change: our team confirms the details for your shipment.