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Can you claim VAT on freight and moving servicesin the UAE?

Last reviewed

Can you recover the VAT?
Recoverable
VAT charged
5% or 0%
Corporate tax
Deductible

Recoverable on domestic courier and moving. International freight is zero-rated.

For the wider rules, see Shipping.

When you can claim the VATand when it's blocked

You can claim

  • Domestic courier and moving services carry 5%, recoverable.
  • International freight and directly related services are zero-rated.
  • Import VAT on goods is paid at customs or accounted for through the return.

You can't claim

  • Moving household goods for an employee is a personal benefit unless required by contract or documented policy.

Worked examplesand why they land that way

  1. Recoverable

    Aramex domestic delivery

    5%, recoverable.

    Domestic courier services are standard-rated, so the 5% on the invoice is recoverable for business deliveries.

  2. Depends

    Sea freight from China

    Zero-rated freight, import VAT on goods.

    International freight is zero-rated, so the shipping invoice carries no VAT. The goods themselves attract 5% import VAT, which a registered importer accounts for in the VAT return and normally recovers in the same return.

  3. Recoverable

    Relocation of a new hire under the employment contract

    Moving an employee's household goods is normally a personal benefit, but here the employment contract requires it. That makes the 5% recoverable.

What to keepand what to watch

Documents you need

Tax invoice; customs declaration for import VAT.

Corporate tax

Deductible. Freight on assets may be capitalized with the asset.

GL account: Freight in / Courier / Relocation

Common mistakes

Missing import VAT in the return. Claiming VAT on personal relocations without a policy.

Reverse charge and imports

Import VAT on goods is self-accounted by registered importers.

How reverse charge works

Questions peopleask about this

Which freight services are zero-rated?

International freight and the services directly related to it.

How does import VAT work?

Import VAT on goods is paid at customs or, for registered importers, accounted for through the VAT return, where it's normally recovered.

Can I claim VAT on moving an employee's household goods?

Only if a contract or documented policy requires it. Otherwise it's a personal benefit and blocked.

Relatedexpenses

Rules thisanswer relies on

Legal basis: VAT Law Art. 45; Exec. Reg. Art. 33; VAT Law Art. 50

Sources

General treatment for VAT-registered UAE mainland businesses making fully taxable supplies. Free zones, partial exemption, government entities, and the facts of a specific purchase can change the answer. This guide isn't tax advice.