Costs and charges
VAT (value added tax)
A consumption tax charged on imported goods at the border, calculated on the customs value plus duty.
In four languages
Import VAT is charged on the CIF value plus customs duty and any excise. The UAE and Oman charge 5%, and Saudi Arabia 15%. In the UAE, a VAT-registered importer whose customs code is linked to its tax registration number can usually account for import VAT through the reverse charge in its VAT return instead of paying it at the border; otherwise customs collects it before release. Oman has a similar deferment scheme for approved importers. Import VAT is normally recoverable only by the party that is the importer of record, which is one reason DDP can be costly for VAT-registered buyers. Example: CIF value USD 22,000 plus 5% duty of USD 1,100 gives a VAT base of USD 23,100, so 5% UAE import VAT is USD 1,155.
Questions
What is the import VAT rate in the UAE and Oman?
Both charge 5% on the CIF value plus duty. Saudi Arabia charges 15%.
Do I have to pay VAT at customs in the UAE?
Not if you are VAT-registered and your customs code is linked to your TRN, in which case you normally use the reverse charge. Ask your tax advisor about your situation.