Definition

Import VAT is the VAT charged on goods imported into the UAE from abroad. It is declared under the reverse charge mechanism in the VAT return.

Key points

• Paid on import through Customs or self-accounted in EmaraTax.
• Rate is usually 5% of the CIF value.
• Can be reclaimed as input VAT if related to taxable business.
• Requires Customs declarations and import codes.

Practical example

A UAE retailer imports electronics worth AED 200,000. Import VAT of AED 10,000 is reported via reverse charge in its VAT201 return.

Why it matters

Correct handling of import VAT avoids Customs delays and ensures proper recovery of input VAT.