No VAT on Import of these Goods

Tally Solutions | Updated on: February 10, 2020

When goods or services are imported into UAE, the importer is liable to pay VAT on reverse charge basis. However, certain specified goods are exempted from VAT on import. When these goods are imported or brought into UAE, VAT is not liable to be paid by the recipient. Note that these exemptions should not be confused with Customs duty exemptions on certain specified imports. These goods are only exempted from VAT. Customs duty would still be liable to be paid on some of these goods. Let us understand the goods which are exempted from VAT on import.

a. Goods imported by the military forces and internal security forces

Imports for all sectors of the armed forces and internal security forces, such as ammunition, arms, equipment, military means of transport and their spare parts and any other related materials are exempted from VAT on import.

b.Personal effects and gifts accompanied by travellers

When tourists visit UAE, the personal belongings and gifts brought by them are exempted from VAT. These belongings should be non-commercial in nature and should confirm to certain conditions.

c.Used personal effects and household items transported by UAE nationals living abroad on return or expats moving to live in UAE for the first time

Used personal belongings and household items brought into UAE by UAE nationals returning to UAE after living abroad, are exempted from VAT. Similarly, when expatriates from other countries move to UAE for the first time, the used personal belongings and household items brought by them are exempted from VAT.

d.Returned goods

When goods exported from UAE are returned or goods which have been temporarily exported for finishing or repair have been brought back to UAE, VAT is not levied.

Hence, UAE residents and businesses can take note of these goods which are exempted from VAT on import.