Dubai has imposed additional customs duties on overseas purchases worth over AED 300.
Abdelhak Attalah, a partner of the marine and international trade practice, Galadari Advocates and Legal Consultants, explained that as per the Unified Customs Tariff for the GCC States of 2022, the tax rate has been set at 5 percent of the items if their value is higher than AED 300 unless there is a rate of zero percent exemption applicable.
This signifies that citizens who purchase items from abroad for more than AED 300 will be required to pay a 5 percent import customs charge and a 5 percent value-added tax (VAT).
Tobacco, tobacco products, e-cigarettes, and vaping liquids are also subject to a 200 percent customs charge in addition to the “sin tax,” which also applies to sugary drinks, revealed Attalah.
This new customs tariff and customs clearance rule took effect on 1 January 2023, according to a notification from Dubai Customs – Notice No.5 of 2022.
Imported products worth less than AED 300, on the other hand, will be free from customs taxes. However, tobacco, tobacco goods, e-cigarettes, nicotine liquid, alcoholic drinks, and alcoholic snacks are not exempt from customs taxes.
The UAE implemented an excise tax on items that are hazardous to human health, such as carbonated beverages, energy drinks, cigarettes, and tobacco products, in 2017. Later, the scope of the excise duty was broadened to include e-cigarette devices and accessories, liquids used for these devices, and sweetened drinks.