Retail markets · AED 1,000 + 5% VAT
United Arab Emirates
AED 1,000 customs duty-free threshold, but VAT at 5% still applies to imports.
Key facts
| Currency | AED |
|---|---|
| VAT | 5% |
| De minimis | AED 1,000 customs duty-free threshold |
| Duty basis | Customs value; the GCC common tariff applies, with many consumer goods at 5% |
| VAT on imports | Applies regardless of the duty threshold |
| Marketplaces | Amazon.ae, Noon, eBay, Shopify |
| Last verified | 2026-10-17 |
Duty-free below AED 1,000, not tax-free
The UAE waives customs duty on personal imports valued at AED 1,000 or less. VAT is a separate charge: 5% applies to imports from the first dirham, including parcels below the duty threshold. A seller that treats the AED 1,000 line as a tax-free allowance will underprice every small order.
Above the threshold, the GCC common tariff applies. Many consumer goods are at 5%, but the rate is product-specific, and tobacco, alcohol and some other categories carry higher charges or excise.
Free zone or mainland
The UAE's free zones allow goods to be stored and traded with customs suspended while they remain inside the zone. Goods leaving a free zone for the mainland are treated as imports and attract duty and VAT. A seller using a Dubai fulfilment centre needs to know which movement each order triggers, because the fee and tax treatment differ.
Amazon.ae and Noon dominate the general marketplace segment, with eBay serving secondary demand and Shopify supporting direct-to-consumer brands. Arabic-language listings and local returns handling are practical requirements rather than optional polish.
Frequently asked questions
Is a AED 500 parcel VAT-free?
No. The AED 1,000 line is a customs duty threshold. VAT at 5% still applies to imports.
Are free-zone goods duty-free when sold to the mainland?
Goods moving from a free zone into the mainland are treated as imports and attract duty and VAT. The free-zone suspension applies while the goods remain in the zone.
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