UAE customs duty and import VAT explained
How UAE customs duty and import VAT are calculated, the standard 5% rate on CIF value, common exemptions, higher rated goods and a worked example.
Last reviewed 28 September 2026 by the UAE Customs Clearance team
Key points
- Most goods imported into the UAE pay 5% customs duty on the CIF value (cost, insurance and freight).
- Import VAT is 5%, charged on the CIF value plus the customs duty.
- Tobacco carries 100% duty and alcohol 50%. Some goods are duty exempt, including goods of GCC origin with a valid certificate of origin.
- VAT registered businesses can usually account for import VAT through their VAT return instead of paying it at the border.
What is the customs duty rate in the UAE?
The UAE applies the GCC Common Customs Tariff. For most goods the duty rate is 5%, calculated on the CIF value: the price of the goods plus the cost of insurance and freight to bring them to the UAE. If the insurance cost is not stated, customs normally adds 1% of the goods value.
How is import VAT calculated?
Import VAT is 5%. It is charged on the CIF value plus the customs duty, and plus any excise tax that applies. For a business registered for VAT with its customs code linked to its tax registration number, import VAT can usually be declared in the VAT return under the reverse charge mechanism, which avoids paying it upfront at clearance.
Worked example
| Item | Amount (AED) | How it is worked out |
|---|---|---|
| Goods value | 36,725.00 | USD 10,000 at 3.6725 |
| Freight | 2,938.00 | USD 800 |
| Insurance | 367.25 | 1% of goods value, as none was stated |
| CIF value | 40,030.25 | Goods + freight + insurance |
| Customs duty | 2,001.51 | 5% of CIF |
| Import VAT | 2,101.59 | 5% of (CIF + duty) |
| Total duty and VAT | 4,103.10 |
Port handling, delivery order, inspection and clearance fees are separate and are not part of the duty calculation.
Goods with different rates
- Tobacco and tobacco products: 100% duty, plus excise tax
- Alcoholic drinks: 50% duty
- Goods of GCC national origin with a valid certificate of origin: exempt
- Some basic foods, medicines and medical equipment: exempt or reduced
- Excise goods such as tobacco and certain drinks: excise tax on top of duty
The exact rate depends on the HS code of each item, so the same shipment can contain lines with different rates. We confirm the rate for every line before filing.
