How is VAT calculated for imported goods?
VAT is calculated on the value of imported goods as follows:
- For low-value shipments (less than or equal to custom declared value of AED 1000):
Customs value, Insurance, Freight (CIF) x 5%
- For high-value consignments (customs declared value exceeds AED 1000):
(Freight (CIF)+ Excise tax + Customs Duty + Customs Fees) x 5%