Importing goods into the UAE is a structured and well-regulated process. While the system is business-friendly, it leaves you little room for error. You need a clear understanding of UAE import tax, customs duty, and VAT in UAE to avoid delays or compliance issues with the Federal Tax Authority.
This guide explains how import and export in UAE works in 2026, what taxes apply, and how businesses can stay compliant.
Overview of UAE Import Tax
The UAE follows a transparent tax framework for imports. Compared to many global markets, you’ll find the rates are stable and predictable. However, getting the classification, valuation, and documentation right is essential.
In most cases, UAE import tax consists of:
- Customs duty
- VAT
Certain product categories may also be subject to excise tax, but this applies only to specific goods like tobacco and sugary drinks. These rules apply across all emirates, including Dubai import tax, with consistent federal regulations governing customs and VAT.
As of 2026, UAE import tax regulations continue to be governed at the federal level, ensuring uniform customs duty and VAT treatment across all emirates under UAE Customs and the FTA.
UAE Import Tax Rates 2026
Tax type | Standard rate | Applies to |
Customs duty | 5% | Most UAE imports |
VAT on Imports | 5% | CIF value + customs duty |
Excise tax | Up to 100% | Tobacco, energy drinks, sugary beverages |
Free zone imports | Suspended | Until goods enter mainland |
Understanding UAE tax is a key part of starting a business in the country and keeping your operations compliant. Working with a local tax expert can help you in this.
Customs Duty in the UAE
Customs duty in the UAE is governed by the GCC Unified Customs Law and administered through UAE Customs authorities across all emirates.
What is the Standard Customs Duty Rate in the UAE?
The standard customs duty rate in the UAE is 5% of the CIF value. CIF includes:
- Cost of the goods
- Insurance
- Freight up to the UAE port of entry
For example, if the CIF value of your shipment is AED 100,000, the customs duty would typically be AED 5,000. This rate applies to most UAE imports, regardless of whether goods enter through Dubai, Abu Dhabi, or another emirate.
Products with Special Duty Treatment in the UAE
Some goods are treated differently under UAE customs regulations:
- Alcohol and tobacco products are subject to higher duty rates
- Certain essential goods may qualify for reduced or zero customs duty
- Goods imported for re-export may be exempt, subject to conditions
Correct HS code classification is essential. A minor classification error can result in higher duty, penalties, or shipment delays.
Products Exempt From UAE Customs Duty
Certain UAE imports may qualify for reduced or zero customs duty, including:
- Essential food items
- Medical equipment and pharmaceuticals
- Educational materials
- Goods imported for re-export
- Machinery for approved industrial projects
Eligibility depends on correct HS code classification and supporting documentation.
VAT on Imports in the UAE
Import VAT is regulated by the Federal Decree Law on VAT and administered by the FTA.
How Import VAT Is Calculated
Imports into the UAE are subject to 5% VAT. It is calculated on:
- CIF value
- Plus customs duty
So if we use the earlier example:
- CIF value: AED 100,000
- Customs duty: AED 5,000
- VAT base: AED 105,000
- VAT payable: AED 5,250
If your business is VAT registered, this VAT is generally recoverable through your VAT return. If not, it becomes an additional cost. For growing import–export companies in Dubai, VAT registration is often a strategic move, not just a formality.
Import VAT is regulated by the Federal Decree Law on VAT and administered by the FTA.
How Import VAT Is Calculated
Imports into the UAE are subject to 5% VAT. It is calculated on:
- CIF value
- Plus customs duty
So if we use the earlier example:
- CIF value: AED 100,000
- Customs duty: AED 5,000
- VAT base: AED 105,000
- VAT payable: AED 5,250
If your business is VAT registered, this VAT is generally recoverable through your VAT return. If not, it becomes an additional cost. For growing import–export companies in Dubai, VAT registration is often a strategic move, not just a formality.
Is Dubai Import Tax the Same as Other Emirates?
Dubai import tax follows the same federal customs duty and VAT framework as other emirates. However, Dubai stands out due to:
- Advanced Dubai Customs clearance systems
- Faster processing at Jebel Ali Port
- Efficient digital documentation workflows
- Strong support for import-export companies in Dubai
This adds to the list of reasons that Dubai business setup is a popular option for entrepreneurs.
Import and Export in UAE: What Businesses Need to Know
Import and export in the UAE involves more than paying taxes. It requires proper licensing, registrations, and ongoing compliance.
What are the Requirements for Importing Goods to the UAE?
To legally handle import and export activities in the UAE, you typically need:
- A valid trade license with import/export activity
- Registration with UAE Customs
- A customs importer code
- VAT registration, where applicable
- Proper HS code classification
Without these, goods cannot be cleared, regardless of whether duties and taxes are paid.
What are the Requirements for Exporting Goods from the UAE?
Exports are generally:
- Free from customs duty
- Zero-rated for VAT (subject to documentation)
UAE Import Tax for Import Export Companies in Dubai
Import export companies in Dubai must consider:
- Mainland vs free zone structure
- VAT recovery eligibility
- Customs duty exposure
- Re-export planning
- Cash flow management
Free zone-based import export companies benefit from duty suspension until goods enter the mainland, making Dubai an ideal trading hub.
Free Zones and Import Tax Exemptions
Goods imported into UAE free zones are treated as outside the UAE customs territory until released to the mainland.
Importing into UAE Free Zones
Goods brought into UAE free zones usually enjoy several advantages, including suspended customs duties and VAT, along with flexible options for storage, processing, and re-export. This is why many import–export companies in Dubai choose free zones like JAFZA, DMCC, or DAFZA as their base of operations.
When Taxes Become Payable
Customs duty and VAT become payable when goods move from a free zone to the UAE mainland. This structure allows businesses to manage cash flow efficiently while maintaining compliance.
Documents Required for UAE Imports
Missing or incorrect documentation is a leading cause of clearance delays. To clear UAE imports, the following documents are required:
- Commercial invoice
- Packing list
- Certificate of origin
- Bill of lading or airway bill
- HS code declaration
- Importer code
Who Pays UAE Import Tax and When?
- Customs duty is paid at the port of entry
- VAT is paid at import clearance
- VAT-registered businesses can recover import VAT through returns
- Non-registered businesses treat VAT as a cost
Common Import Tax Errors
- Incorrect HS code classification
- Under-declared shipment values
- Missing certificates of origin
- Misaligned VAT registration
- Incomplete customs documentation
- Incorrect customs valuation
- Misuse of free zone exemptions
- Delayed VAT recovery filings
These issues often result in clearance delays, financial penalties, or increased scrutiny from authorities.
Compliance for Import-Export Companies
Running a compliant import-export company in the UAE requires coordination across customs, tax, and accounting functions.
Key compliance areas include:
- Customs regulations and declarations
- VAT filings and documentation
- Accurate invoicing and record-keeping
- Audit readiness
As regulatory oversight continues to mature, proactive compliance is no longer optional. As UAE regulatory oversight strengthens in 2026, import-export compliance is increasingly subject to audits and cross-departmental checks.
How A&A Associate Supports Import and Export Businesses
At A&A Associate, we work closely with businesses involved in import and export in UAE, supporting them at every stage of their journey.
Our expert team assists with:
- Import/export license setup
- Customs registration and importer codes
- VAT registration and compliance management
- Import tax planning and structuring
- Ongoing accounting and regulatory support
