The purpose of this is to outline the specific rules that apply to goods imported into the UAE, including goods which enter designated zones and the rules which apply when such goods leave those zones.

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Chapter 7 - Import of Goods
Chapter 7
Import of Goods
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Import of Goods
Chapter Summary
The purpose of this is to outline the specific rules that apply to goods
imported into the UAE, including goods which enter designated zones and
the rules which apply when such goods leave those zones.
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Chapter 7 - Import of Goods

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Chapter 7 - Import of Goods
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It should be noted that where an unregistered person
imports goods using a VAT registered agent, such as a
courier company, the agent will be responsible for
paying import VAT to the FTA on behalf of the
unregistered person. This agent needs to account for
the relevant import VAT on their own tax return, and is
not able to recover the VAT accounted for as input tax.
The agent will also be required to issue a statement to
the unregistered importer with details of the import
and the VAT paid.
Import of Concerned Goods
A person not registered for Tax shall pay Due Tax on
Import of Concerned Goods from outside the
Implementing States on the date of Import pursuant
to the payment mechanism.
Imports made by VAT Registered Persons
Where the import is made by a VAT registered person,
the import VAT should be accounted for on the
person’s tax return using the reverse charge
mechanism. As a consequence, a VAT registered person
may clear the goods through customs and be able to
use the goods in the UAE even before the import VAT is
accounted for to the FTA.
Accounting Import VAT
VAT is due on the import of goods into the UAE where
those goods, if otherwise supplied in the UAE, would
be taxable at the standard rate. This means that no
import VAT will be due in respect of goods which
would ordinarily be zero-rated or exempt from VAT.
The manner in which this import VAT should be paid,
and the timing of payment, is dependent on the
status of the importer.
Imports made by Non-Registered Persons
Where the import is made by an individual or a
business which is not registered for VAT in the UAE,
VAT is due to be paid in respect of the import at the
point of importation. As such, VAT must be paid prior
to the goods being released to the importer.
Import VAT is calculated on the value of the goods
inclusive of any customs duty and excise tax that may
also be due. Payment of VAT will need to be made
directly to the FTA, separately from any payments
which are due to the Customs authorities (for
example, customs duties). VAT payment will be made
to the FTA using the FTA’s payment portal. Once the
VAT is paid, the importer will be able to proceed with
the customs clearing process in respect of the goods.

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Chapter 7 - Import of Goods
In order to benefit from the ability to defer the
payment of VAT in this way, the importer must:
● Be able to demonstrate that they are
registered for VAT at the time of import of the
goods;
● Provide the FTA with their own Customs
registration number issued by the competent
Customs authority for that import; and
● Co-operate with the FTA and comply with any
other rules which may be imposed by the FTA
in respect of the import.
Where the payment of the import VAT is accounted for
on the tax return, the VAT registered importer must
declare the import VAT as output tax in the tax return
covering the period of importation.
Relief from Import VAT
Certain categories of goods are relieved from import
VAT. In some cases, these categories mirror reliefs
which are available in respect of customs duties,
therefore allowing certain goods not to be subject to
both VAT and customs duties.
Import VAT relief will be available in the cases
outlined below.
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Customs Suspension
Where goods are under customs duty suspension
arrangements in accordance with the GCC Common Customs
Law, the imposition of import VAT will also be suspended in
the following cases:
1. Goods enter the UAE under temporary admission;
2. Goods are placed in a customs warehouse;
3. Goods are in transit; and
4. Goods are intended to be re-exported by the same
person who imported them.
The FTA may require the importer to provide a financial
guarantee or a cash deposit equal to the value of the VAT
which would be due on import before allowing the goods
not to be treated as imported in the UAE in respect of above
categories.
In addition to the above, goods will not be treated as
imported into the UAE if they are imported from outside the
UAE to a UAE designated zone.
It should be noted that where any of above rules apply, the
movement of goods into the UAE is not treated as an import,
and therefore not subject to import VAT. If any conditions for
the VAT suspension are subsequently broken, the goods may
be treated as having been imported into the UAE and the VAT
will become due on the import on the date the goods were
originally imported.

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Chapter 7 - Import of Goods
VAT-Free Imports
The second type of goods which are relieved from
import VAT are goods which are exempt from customs
duties in accordance with the GCC Common Customs
Law.
These are:
1. Goods imported by the military forces and
internal security forces;
2. Personal effects and gifts accompanied by
travelers;
3. Used personal effects and household items
transported by UAE nationals living abroad on
return or by expats moving to live in the UAE
for the first time; and
4. Returned goods.
Goods falling under any of these categories are
treated as having been imported into the UAE but are
exempt from the imposition of VAT.
The Import value of Goods consists of:
1. The customs value pursuant to Customs
Legislation, including the value of insurance,
freight and any customs fees and Excise Tax paid
on the Import of the Goods. Tax shall not be
included in the Value of the Supply.
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2. If it is not possible to determine the value pursuant to
Clause (1) of this Article, the value shall be determined
based on alternate valuation rules stated in the applicable
Customs Legislation.
Value of Supply for Related Parties
The value of the supply or Import of Goods or Services
between Related Parties shall be considered equal to the
market value if the following conditions are met:
1. The value of the supply is less than the market
value.
2. If the supply is a Taxable Supply and the Recipient
of Goods or Recipient of Services does not have
the right to recover the full Tax that would have
been charged to such supply as Input Tax.

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Chapter 7 - Import of Goods
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Cabinet Decision No. 52 of 2017 –
Issued 26 November 2017 Cabinet
Decision No. 46 of 2020 – Issued 4 June
2020 Cabinet Decision No. 24 of 2021 –
Issued 11 March 2021
Article 47 – General rules regarding Import of Goods
1) Without prejudice to the provisions of the Decree-Law
and this Decision, Goods shall not be treated as imported
into the State according to the following:
a) Where they are under customs duty suspension
arrangements in accordance with the GCC Common
Customs Law, and subject to providing a financial
guarantee or a cash deposit equal to the value of the
Due Tax if and when requested by the Authority, in
the following cases:
i) Temporary admission
ii) Goods placed in a customs warehouse.
iii) Goods in transit.
iv) imported Goods intended to be re-exported by
the same Person.
The Executive Regulation of the
Federal Decree-Law No. 8 of 2017
on Value Added Tax
b) Imported into a Designated Zone from a place
outside the State.
2) Tax shall not be due on any Import of Goods where
they are under an exemption from Customs duty
under the following categories in accordance with the
GCC Common Customs Law:
b) Goods imported by the military forces, and
internal security forces.
c) Personal effects and gifts accompanied by
travellers.
d) Used personal effect and household items
transported by UAE nationals living abroad on
return or expats moving to live in the UAE for first
time.
e) Returned Goods.
3) Where a Person imported Goods to the State through
another Implementing State the Tax will not be due on
that Import, if the Authority establishes that Tax is due
on the supply or transfer of Goods in that other
Implementing State.
4) The Authority may specify procedures to be followed
by Importers and Customs Departments in respect of
the Import of Goods.

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Chapter 7 - Import of Goods
Article 48 – Calculation of Tax under the Reverse
Charge Mechanism on import of Concerned Goods or
Concerned Services
1) For the purposes of import of Concerned Goods,
Clause 1 of Article 48 of the Decree-Law shall apply
if the following conditions are met:
a) At the time of Import, the Taxable Person can
demonstrate that they are registered for Tax.
b) The Taxable Person has sufficient details for the
Authority to verify the Import and the Tax which
shall be due on the Import and is able to
provide these as required.
c) The Taxable Person has provided the Authority
with its own Customs registration number
issued by the competent Customs Department
for that Import, such Customs Departments to
verify the Import subject to the rules set by the
Authority.
d) The Taxable Person has cooperated with, and
complied with any rules imposed by, the
Authority in respect of the Import.
2) Where the conditions mentioned in Clause 1 of this
Article are not met, the Taxable Person shall
account for Tax in respect of the Import in
accordance with Clause 1 of Article 50 of this
Decision.
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3) Where a Taxable Person who has a Place of Residence in
the State receives a supply of Goods or Services with a
Place of Supply in the State, from a supplier who does not
have a Place of Residence in the State and does not charge
Tax on that supply, the supply shall be treated as being of
Concerned Goods or Concerned Services subject to Clause
1 of Article 48 of the Decree-Law.
4) Where Clause 1 of Article 48 of the Decree-Law applies,
the Taxable Person must:
a) Account for Tax on the value of the Concerned Goods
or Concerned Services at the rate which would be
applicable if the supply of the Concerned Goods or
Concerned Services was made by a Taxable Person
within the State.
b) Declare and pay the Due Tax in the Tax Return which
relates to the Tax Period in which the Date of Supply
for the Concerned Goods or Concerned Services took
place.
5) Where a Taxable Person accounts for Due Tax in
accordance Clause 1 of Article 48 of the Decree-Law, the
Taxable Person shall keep the following documents
relating to the supply:
a) The supplier’s invoice showing details and the
Consideration paid for the Concerned Goods or
Concerned Services.

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Chapter 7 - Import of Goods
b) In the case of Concerned Goods, a statement
from the relevant Customs Department
showing details and the value of the Concerned
Goods.
Article 49 – Payments for Goods Transferred to
another Implementing States
1. For the purposes of Clause 2 of Article 48 of the
Decree-Law, the Taxable Person must make a
payment of the Due Tax by using the payment
method specified by the Authority.
2. Unless expressly approved by the Authority to defer
the payment of Due Tax, the payment referred to in
Clause 1 of this Article shall be made at the time or
before the Import of the Goods as directed by the
Authority.
Article 50 – Imports by Unregistered Persons
1) Where Concerned Goods are imported by a Person
not registered for Tax or where the Taxable Person
does not meet the conditions in Clause 1 of Article
48 of this Decision, Tax shall be paid to the
Authority by or on behalf of the Person before the
Goods may be released.
2) The Customs Departments shall cooperate with the
Authority to ensure that Payable Tax on Import has
been settled before releasing of Goods.
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3) Tax referred to in Clause 1 of this Article must be settled
using the payment method specified by the Authority.
4) For the purposes of Clause 1 of this Article, where a
Person who is not registered for Tax imports Goods is
using an agent who acts on behalf of the Person for the
purposes of importing the Goods into the State and who is
registered for Tax in the State, the agent shall be
responsible for the payment of the Tax in respect of the
Import of Goods.
5) The obligation on the agent under Clause 4 of this Article
to pay Tax on behalf of another Person shall be met as
part of the agent’s Tax Return and pay Tax as though he
imported the goods himself.
6) An agent who has paid tax in accordance with Clause 4 of
this Article shall not recover as Input Tax any Tax paid on
behalf of another Person in accordance with obligations
set out in this Article.
7) Where an agent has paid Tax on behalf of another Person
is accordance with this Article, it shall issue a statement to
that other Person which contains, at the minimum, all of
the following details:
a) The name, address, and Tax Registration Number of
the agent.
b) The date upon which the statement is issued.

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Chapter 7 - Import of Goods
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c) The date of Import of the relevant Goods.
d) A description of the imported Goods.
e) The amount of Tax paid by the agent to the
Authority in respect of the imported Goods.
8) The statement issued by the agent to a Person
in accordance with this Article shall be treated
as a Tax Invoice for the purposes of the
documentation requirements in paragraph (a)
of Clause 1 of Article 55 of the Decree-Law.