FR-MKT · UAE · 21 Oct 2026
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UAE car import duty: how the 5% duty and import VAT are worked out
Sources checked 21 October 2026. Rates and fees change; confirm locally.
UAE customs duty on a car is a percentage, so it rises with the value Customs puts on the car. This guide explains the rate, how the customs value is set, how import VAT is added, which Dubai Customs fees apply to the declaration, and when duty is suspended for re-export. For every other line of the cost, see Landed cost in Dubai; for shipping, Shipping a car from the USA to the UAE.
The rate: 5% of CIF
- The GCC common customs tariff is 5% on foreign goods imported from outside the GCC (ICP, checked 21 Oct 2026 · estimate — confirm locally).
- In Dubai it's 5% of the CIF value (cost, insurance and freight) (u.ae; Dubai Customs Customer Guide §7, checked 21 Oct 2026 · estimate — confirm locally). The u.ae portal gives 5% for Sharjah too.
- Duty is collected at the first GCC point of entry. If the car lands in Dubai and goes on to another GCC state, it's cleared in Dubai (Customer Guide §7.1, checked 21 Oct 2026).
The customs value
Duty is worked out on the customs value. If Customs doubts the declared value, it can ask for documents proving what was actually paid, or adjust the value under Article 7 of GATT 1994 (Customer Guide §8, checked 21 Oct 2026). We found no published reference-price list for used cars. Keep the auction invoice, the buyer-fee receipt and proof of payment, and ask your agent what goes into the value for your car.
Import VAT as well
The Federal Tax Authority says imported cars carry 5% import VAT on the customs value, including insurance, freight and any customs fees paid on import (FTA VAT Guide, Automotive §6.1, checked 21 Oct 2026 · estimate — confirm locally). In practice: 5% of (CIF + duty + customs fees). How a VAT-registered importer accounts for it is in the same guide.
Dubai Customs declaration fees
| Item (checked 21 Oct 2026) | AED |
|---|---|
| Declaration: Import to Local from ROW (dutiable) | 70 |
| Declaration: Import for Re-Export to Local from ROW | 100 |
| Innovation Fee (every transaction with a fee over AED 50) | 10 |
Source: Dubai Customs Customer Guide, Appendix A and §10. The guide is version 3.03 and undated, so check the amounts on the day. estimate — confirm locally. The same guide lists other charges (for example an AED 150 inspection charge) without saying when they apply to a car; ask your agent.
Worked example: CIF AED 30,000
Illustrative CIF value; rates and fees from the sources above. Arithmetic, not an official quote. estimate — confirm locally.
| Line | How | AED | USD at 3.6725 |
|---|---|---|---|
| CIF value | Illustrative input | 30,000 | $8,169 |
| Customs duty | 5% × CIF | 1,500 | $408 |
| Declaration + Innovation Fee | AED 70 + AED 10 | 80 | $22 |
| Import VAT | 5% × (CIF + duty + fees) = 5% × 31,580 | 1,579 | $430 |
| Duty, VAT and declaration fees | 3,159 | $860 |
USD at the fixed peg of 3.6725 AED per USD (CBUAE). MOIAT, VCC and registration fees aren't in this table; see Can a US salvage car get UAE plates? and Landed cost in Dubai.
When duty is suspended (re-export, free zones, transit)
- Dubai Customs suspends duty while goods are in transit, in a customs warehouse, in a free zone, under temporary admission, or imported for re-export. It may ask for a deposit or guarantee, released on proof of exit (Customer Guide §9, checked 21 Oct 2026).
- The FTA says goods under temporary admission, in a customs warehouse, in transit, or imported to be re-exported by the same person aren't treated as imported for VAT (FTA §6.4, checked 21 Oct 2026).
- Goods leaving a free zone into the UAE become dutiable (ICP, checked 21 Oct 2026).
- Plates are a separate question: the damage rules for local registration are in Can a US salvage car get UAE plates?, and the Abu Dhabi steps in Registering an imported US car in Abu Dhabi.
Put it into the free calculator
The live max bid calculator is a free USD worksheet with no account: max bid = resale − repair − buyer fee − transport − title and registration − target profit. It has no customs fields and doesn't know the UAE. Convert duty, VAT and fees to USD and put them in Title and registration. Because duty is a percentage of CIF, and CIF includes the hammer, re-check it at the hammer you plan to bid (see Landed cost in Dubai).
Want this inside the browser? The FlipRadar Chrome extension version with Market Profiles adds dirham amounts, landed cost at your port, a walk-away line, and flags for flood, fire and beyond-repair lots when you choose local plates. It's in private beta and not in the Chrome Web Store. The private beta is free. To try it, email hello@theflipradar.com and ask for the private-beta extension.
FlipRadar is not affiliated with, endorsed by, or sponsored by any auction company, Dubai Customs, the FTA or ICP. FlipRadar isn't a broker or customs agent, and this isn't tax advice.
Related guides: Landed cost in Dubai · Shipping a car from the USA to the UAE · Can a US salvage car get UAE plates? · Registering an imported US car in Abu Dhabi · UAE import rules · all guides.
FAQ
What is the customs duty on importing a car to the UAE?
5% of the CIF value (cost, insurance and freight) for cars from outside the GCC, under the GCC common customs tariff (ICP and Dubai Customs Customer Guide, checked 21 Oct 2026). The u.ae government portal gives the same 5% of CIF for Dubai and 5% for Sharjah. Estimate — confirm locally.
How does UAE customs decide the value of an imported used car?
Duty is charged on the customs value. Dubai Customs' Customer Guide says that if Customs doubts the declared value, it can ask for documents proving the amount actually paid, or adjust the value under Article 7 of the WTO's GATT 1994 (checked 21 Oct 2026). We found no published reference-price list for used cars. Keep the auction invoice and proof of payment.
Do you pay VAT as well as customs duty on a car in the UAE?
Yes. The Federal Tax Authority's automotive VAT guide says imported cars are subject to 5% import VAT on the customs value, including insurance, freight and any customs fees paid on import (checked 21 Oct 2026). In practice that's 5% of the CIF value plus duty plus fees. Estimate — confirm locally.
What fees does Dubai Customs charge on a car import declaration?
Dubai Customs' Customer Guide lists AED 70 for a dutiable 'Import to Local from ROW' declaration and AED 100 for an 'Import for Re-Export' declaration, plus an AED 10 Innovation Fee on every transaction with a fee over AED 50 (checked 21 Oct 2026). The guide is version 3.03 and isn't dated, so check the amounts on the day. Estimate — confirm locally.
Is customs duty charged on a car imported for re-export from Dubai?
Duty is suspended, not charged, while goods are in transit, in a customs warehouse, in a free zone, under temporary admission, or imported for re-export; Customs may ask for a deposit or guarantee (Dubai Customs Customer Guide, checked 21 Oct 2026). The FTA guide says goods under those arrangements aren't treated as imported for VAT. Goods leaving a free zone into the UAE become dutiable (ICP).
How much duty and VAT on a car with a CIF value of AED 30,000?
About AED 3,159, or about $860: duty AED 1,500 (5%), declaration and innovation fees AED 80, and import VAT AED 1,579 (5% of AED 31,580). That's our arithmetic from the published rates and fees (checked 21 Oct 2026), not an official quote. Estimate — confirm locally.
Is the duty different in Abu Dhabi or Sharjah?
The 5% GCC common tariff applies across the UAE (ICP). The u.ae portal lists 5% of CIF in Dubai and 5% in Sharjah (checked 21 Oct 2026). Declaration fees differ by emirate; the fees on this page are Dubai Customs'. Confirm locally.
Where does UAE duty go in the FlipRadar calculator?
In Title and registration. The free max bid calculator is a USD worksheet with no customs fields: convert duty, VAT and customs fees to USD (3.6725 AED per USD) and add them there, with registration.
Sources
- ICP, Customs Union for GCC States: https://icp.gov.ae/en/customs-union-for-gcc/ (checked 21 Oct 2026)
- u.ae, Customs duty and tariff: https://u.ae/en/information-and-services/finance-and-investment/taxation/clearing-the-customs-and-paying-customs-duty (checked 21 Oct 2026)
- Dubai Customs, Customer Guide (v3.03): https://www.dubaicustoms.gov.ae/en/OpenData/Publications/Customer_Guide_Booklet_EN.pdf (checked 21 Oct 2026)
- FTA, VAT Guide, Automotive Sector: https://tax.gov.ae/DownloadOpenTextFile?fileUrl=en%2FVAT_VAT_Guides%2FAutomotive_Sector%2FAutomotive_Sector_EN_29_06_2021_EN.pdf (checked 21 Oct 2026)
- CBUAE, fixed peg: https://centralbank.ae/en/news-and-publications/news-and-insights/press-release/the-policy-of-the-fixed-peg-of-the-uae-dirham-to-the-us-dollar