Dubai is a re-export hub. Many importers land in Jebel Ali, hold stock in a free zone and only pay duty and VAT when goods enter the mainland. That changes the cash-flow timing, not the underlying cost.
What the border actually charges
Duty is generally 5% of the CIF value under the GCC common tariff. VAT is then charged on the CIF value plus duty, and is usually recoverable for registered businesses.
Port, clearance and inland charges are comparatively low, but free-zone storage, handling and documentation can add up for small shipments.
Where estimates go wrong
Assuming every product is 5%. Tobacco, alcohol and certain regulated goods attract much higher rates.
Ignoring conformity. Electricals, toys, food and cosmetics may need registration or Arabic labelling before release.
How to use this estimate
For a mainland sale, use the full estimate. For a free-zone holding strategy, separate the entry costs from the later mainland transfer.
Confirm whether your buyer will be the importer of record, because VAT recovery and duty liability follow the registration.
Watch-outs before you book freight
- Free-zone goods are not automatically duty-paid for mainland sale.
- Used electronics and audio equipment may be inspected for condition and safety.
- VAT recovery depends on a valid TRN and business use.
Common questions
Is UAE import duty always 5%?
No. Most goods under the GCC common tariff are 5%, but tobacco, alcohol and specific regulated products carry higher rates. Confirm the 8-digit GCC code.
Is VAT charged on duty?
The standard import VAT base is the customs value plus duty. Our estimate applies 5% to that base and labels it as an assumption.
Can I use a free zone to defer duty?
Goods can be held in a free zone without duty and VAT in many cases. Duty and VAT generally become payable when goods enter the mainland market.
Sources & review dates
We keep the source record visible because the underlying rules change. A rate in a report is only useful if you know which rule and which date it came from.
| Source | Reviewed |
|---|---|
| UAE Federal Customs Authority | 2026-11-01 |
| Dubai Customs | 2026-11-01 |
| UAE Federal Tax Authority — VAT | 2026-11-01 |