How do I calculate landed cost for a UAE import?

Landed cost is the total of goods, freight, insurance, customs duty, import VAT and local clearance charges. AED 100,000 of goods with AED 7,000 freight and AED 1,000 insurance gives a CIF of AED 108,000, AED 5,400 duty and AED 5,670 VAT.

What is the difference between CIF value and landed cost?

CIF is goods plus freight plus insurance: the value customs assesses duty on. Landed cost adds the duty, the import VAT and every local charge needed to get the goods to your door.

UAE Import Landed Cost Calculator

Summary Response

"Landed cost is the total of goods, freight, insurance, customs duty, import VAT and local clearance charges. Importing AED 100,000 of goods with AED 7,000 freight and AED 1,000 insurance gives a CIF of AED 108,000, AED 5,400 duty, AED 5,670 VAT and, with AED 1,600 of clearance and inland charges: a landed cost of AED 120,670."

UAE Import Cost Factors

Order of operations: duty is charged on CIF, then VAT is charged on CIF plus duty: VAT applies to the duty itself, which is why adding the two rates together understates the bill.

VAT-registered importers can defer import VAT to their return under the reverse charge mechanism rather than paying it at the border, which is a cash-flow difference, not a saving.

Clearance, port handling, documentation and inland transport sit outside the tax base but routinely add AED 1,000-2,500 per consignment.

Frequently Asked Questions

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