Import Tax UAE Guide for 2026

The minimal tax rates, swift customs procedures, robust infrastructure, and numerous trade agreements have made the United Arab Emirates the gateway to the Middle East. Customs duties, VAT, and regulations directly impact businesses operating in the UAE, affecting their operational costs and compliance obligations. The UAE has one of the highest levels of re-exports as % of total exports across GCC countries, currently hovering around 30%.

The only catch, if you can even call it that, is that you must prepare the right documentation and pay duties on time. Businesses registered with relevant authorities, such as the Ministry of Industry and Advanced Technology (MoIAT), must comply with import procedures to ensure legal operations and eligibility for import duty refunds.

In this article, we will provide a detailed outline of the UAE’s customs framework and guides for calculating import duties and navigating customs clearance. Changes in duty thresholds and classification can result in increased costs for importers and buyers. Read on to know more!

What are the key import duty rates in the UAE?

In the United Arab Emirates, importers face three kinds of import taxes, which are:

1. Customs duty

Customs duty is calculated based on the CIF (cost, insurance, and freight) value of an import. The customs duty rate applicable to different product categories is:

1. Exempt goods: 0%
2. Alcoholic beverages: 50%
3. Tobacco products: 100%
4. Most goods: 5%

General cargo, such as electronics, clothing, and household goods, is typically subject to the standard 5% customs duty rate. The value of exported goods is based on the customs declaration plus transportation costs up to the port of destination within GCC States. Goods exported for repairs or finishing have a specific customs duty and valuation treatment when re-imported.

Certain imported goods in the United Arab Emirates qualify for duty exemption, i.e., 0% customs duty rate, particularly essential items that support basic consumption, public health, education, and industrial production. These exemptions are granted to ensure a steady supply of essential goods across the UAE. Common examples include:

• Livestock, meat, and seafood
• Fresh fruits, vegetables, and edible roots
• Gold and platinum
• Cereals
• Flour
• Books, newspapers, and other printed materials
• Mobility aids for people with disabilities

2. Excise tax

Excise tax is meant to discourage the consumption of products harmful to public health or the environment. Tobacco and tobacco products, liquids used in e-smoking devices/tools, electronic smoking devices and tools, energy drinks, and sweetened drinks are the five types of excise goods. Except for sweetened drinks, all excise goods attract a 100% excise tax.

Effective 1 January 2026, the UAE implemented a ‘Tiered Volumetric Model’ for excise tax on sweetened drinks, replacing the previous flat 50% rate with rates based on sugar content per 100ml. Please note, that if the importer doesn’t provide a lab report for sugar content, the FTA can apply the highest category until the report is submitted.

The excise tax rates effective as of 1st January 2026 are as follows:

Product	Excise tax
Tobacco and tobacco products	100%
Liquids used in e-smoking devices/tools	100%
Electronic smoking devices and tools	100%
Energy drinks	100%
Sweetened drinks (5-8g sugar or other sweeteners per 100 ml)	AED 0.97 per litre
Sweetened drinks (More than 8g sugar or other sweeteners per 100ml)	AED 1.09 per litre
Sweetened drinks (Less than 5g sugar or other sweeteners per 100ml)	AED 0 per litre
Sweetened drinks (Only artificial sweeteners or artificial sweeteners and less than 5g sugar per 100ml)	AED 0 per litre

Under excise rules, relief/refund mechanisms may apply in specific cases (e.g., exports or other qualifying scenarios), subject to FTA conditions.

Excise tax is calculated on the Excise Price, which is the higher of:

1. FTA standard price list (if available)
2. Designated Retail Sales Price (DRSP) less the excise tax included.

The DRSP is higher of your declared recommended retail price or the market average price, both excluding VAT.

Please note: from 1 Jan 2026, sweetened drinks excise is not DRSP-based. It is charged as AED per litre based on sugar/sweetener content.

Example

Suppose you import a product with 100% excise tax. This import’s DRSP (AED 100,000) is higher than its FTA standard price (AED 80,000).

Then, the excise tax can be calculated as:

Excise tax = DRSP × Excise tax rate ÷ (1 + Excise tax rate)

= AED 100,000 × 100% ÷ (1 + 100%)

= AED 100,000 × 1 ÷ 2

= AED 50,000

3. Value added tax (VAT)

Import VAT is calculated on: CIF (customs value) + customs duty + excise tax (if any). The standard VAT rate is 5%. Import VAT is self-accounted on VAT returns instead of being payable at the border if your business is VAT-registered, whereas non-registered businesses must pay VAT at clearance. VAT-registered businesses can also recover import-related input VAT through the reverse charge mechanism.

How to calculate import duty in the UAE?

Here’s a breakdown of import duty calculation in the United Arab Emirates context:

1. What is your import’s Harmonized System (HS) code?

You can use this HS Code Search by Dubai Customs to find your import’s HS Code based on its product description. This code will help you identify the tax treatment for your imported goods.

Correct classification under the HS code is especially important for general cargo, as it ensures proper duty calculation for a wide range of everyday imports.

For example, if you are importing energy drinks, your HS Code will be “22021024”.

2. What is your import’s customs value?

Your import’s cost, insurance, and freight (CIF) value is its customs value and forms the basis for import duty calculations. An insurance certificate is needed to prove that the shipment is insured during transit.

Let’s continue our example and assume that your CIF value is AED 100,000.

3. What is your customs duty?

You can verify your customs duty based on your HS Code via this PDF. Customs duty in the UAE is calculated based on the CIF value (Cost, Insurance, and Freight) of the imported goods. For energy drinks, the customs duty is 5%. So, we can calculate the customs duty for our example as:

Customs duty = AED 100,000 × 5% = AED 5,000

Additionally, the UAE may impose anti-dumping duties on specific goods to protect local industries. These rates vary by product and country of origin.

4. What is your excise tax?

Excise tax is only applicable to harmful goods and is meant to discourage their consumption. The formula for excise tax is:

Excise tax = Excise price × Excise tax rate ÷ (1 + Excise tax rate)

Excise price is the greater of the FTA standard price list or the Designated Retail Sales Price (DRSP), which itself is the greater of the declared recommended retail price or average market price, both excluding VAT.

So, as an importer, you must declare a recommended retail price such that it comfortably covers the CIF plus customs duty and any applicable excise tax. You can use the following formula to ensure break-even:

Break-even excise price = (CIF value + Customs duty) ÷ [1 – Excise tax rate ÷ (1 + Excise tax rate)]

Let’s continue our example to see the break-even excise price for the shipment of energy drinks.

Break-even excise price = (AED 100,000 + AED 5,000) ÷ [1 – 100% ÷ (1 + 100%)]

= AED 105,000 ÷ [1 – 1 ÷ 2]

= AED 105,000 ÷ [1/2]

= AED 105,000 × 2

= AED 210,000

At this excise price, the excise tax would be:

Excise tax = AED 210,000 × 100% ÷ (1 + 100%)

= AED 105,000, which leaves just enough room to account for CIF value and customs duty.

Ideally, you would want to choose an excise price greater than the break-even excise price so that you earn a profit.

Courier companies are also affected by changes to duty-free thresholds and excise tax regulations, which can impact shipping costs and compliance requirements for importers.

5. What is your import VAT?

An import VAT of 5% is applied on the sum of CIF value, customs duty, and excise tax. Continuing our example, the import VAT liability would be:

Import VAT = (Customs value + Customs duty + Excise tax) × 5% = (AED 100,000 + AED 5,000 + AED 105,000) × 5% = AED 210,000 × 5% = AED 10,500

Here’s a summary of the import duty calculations and the total landed cost (or the total cost of import):

1. Customs value = CIF value = AED 100,000
2. Customs duty = AED 100,000 × 5% = AED 5,000
3. Break-even excise price = (AED 100,000 + AED 5,000) ÷ [1 – 100% ÷ (1 + 100%)] = AED 210,000
4. Excise tax = AED 210,000 × 100% ÷ (1 + 100%) = AED 105,000
5. VAT base = CIF + Customs duty + Excise tax = AED 100,000 + AED 5,000 + AED 105,000 = AED 210,000
6. VAT = AED 210,000 × 5% = AED 10,500
7. Total landed cost = AED 210,000 + AED 10,500 = AED 220,500

Out of all the costs mentioned here, import-related input VAT is recoverable for VAT-registered importers through the VAT returns or the reverse charge mechanism. However, non-registered businesses must pay VAT at clearance and cannot recover it.

How to navigate import regulations in UAE?

Here’s a step-by-step guide on the United Arab Emirates’ customs procedures:

1. Before importing anything, you must get a valid trade license from the Department of Economic Development (DED) of your emirate.
2. Register for a customs import code in the emirate where you will be importing goods.
3. Document the Harmonized System (HS) code for your goods so authorities can swiftly assess the applicable customs duty treatment and identify if any special permissions are required for clearance.
4. Prepare the following documents needed for customs clearance:
   1. Commercial invoice
   2. Packing list
   3. Bill of lading or airway bill
   4. Certificate of origin
   5. Other documentation, such as an import permit
   It is crucial to have all documentation needed, including required certificates and permits, to avoid shipment delays or impoundment.
5. Prepare a customs declaration that mentions details like HS codes, declared value of goods, description of products, and country of origin, and submit it through the relevant customs e-services platform (e.g., the Dubai Trade Portal). This requires you to create a profile, complete the electronic customs declaration form, and upload all supporting documents mentioned in the previous step.
   The Ministry of Industry and Advanced Technology (MoIAT) e-services platform uses advanced technology to streamline the import process for industrial inputs such as machinery, equipment, and raw materials.
   All documents related to customs declarations should be translated into Arabic if required.
6. Pay duties listed by customs authorities. These fees will include all the import duties and service fees.
7. The customs authority will clear your goods for entry into the UAE or will transfer them to a designated free zone after an inspection. The level of scrutiny will depend on the type of goods and paperwork accuracy.

Which documents do customs authorities expect from importers?

Let’s understand which documents are needed for clearance at customs in the United Arab Emirates. Having the required documentation is essential to avoid shipment delays or impoundment. The following documents are needed for customs clearance and are required for importing various items, including personal effects, household items, and pets.

1. Commercial Invoice

Customs authorities rely on the commercial invoice issued by the exporter to verify the declared value of imported goods and the resulting import tax liabilities. This document contains the following information:

• Exporter and buyer information
• Invoice number
• Date
• Detailed description of imported goods
• Total value and currency
• Terms of sale and payment
• Mode of transport
• Country of origin
• Signature of the exporter

A customs notice may specify requirements for invoice issuance from free zones.

2. Bill of Lading (BOL)

A bill of lading is a contract used in sea freight shipments that outlines shipment details, transportation terms, and responsibilities of the shipper. It confirms that the shipper received the goods in the desired condition. Also, the original bill of lading grants legal ownership of the shipment. So, you cannot claim the shipment unless you hold the original bill of lading.

3. Packing List

A packing list is simply a list of all items inside a particular shipment. In addition to internal inventory checks, this document is also used by customs authorities to confirm that what’s declared matches what’s physically shipped. Typically, it will contain the following details:

• Total shipment volume and weight
• Quantity, weight, and description of individual items
• Detailed contents of each container and/or box
• Dimensions of each package

4. Certificate of Origin

As the name suggests, the Certificate of Origin states where the goods were manufactured. This document is typically issued by a chamber of commerce or another authorized agency. It helps customs authorities determine whether the goods qualify for special treatments under trade agreements or present tariff policies.

5. Other Documents

In some cases, you may need to provide import permits and product-specific certifications (such as health and safety approvals). If a customs brokerage is handling the import on your behalf, you must also prepare a power of attorney document.

Conclusion

The United Arab Emirates offers an extremely simplified and swift customs process. Navigating this framework requires you to simply identify the HS code of your imported goods. Then, identifying the documentation requirements and import duties follows as naturally as dominoes falling in a series.

By handling the bookkeeping and tax reporting side of imports, skrooge.ai adds another layer of audit defensibility. By partnering with us, you can focus on running your business without worrying about tax penalties and undue scrutiny.

FAQs about Dubai import tax