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Can you claim VAT on shipping and courier costsin the UAE?

Last reviewed

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

Recoverable on domestic parcels. Import VAT needs your TRN on the customs declaration.

For the wider rules, see Freight, Moving and Delivery Services.

Still being confirmed. When a courier clears a parcel under its own account rather than your TRN, you may not be able to recover the import VAT. Ask the courier to clear imports under your TRN where you can.

When you can claim the VATand when it's blocked

You can claim

  • Domestic parcels and courier deliveries carry 5%, recoverable with a tax invoice.
  • Sending goods out of the UAE is zero-rated.
  • On parcels coming in, couriers often pay import VAT and customs duty at the border and bill you for it.
  • To claim that import VAT, the customs declaration must show your TRN.

You can't claim

  • Shipping personal parcels for employees is a personal benefit.
  • Import VAT cleared under the courier's account rather than your TRN is hard to claim.

Worked examplesand why they land that way

  1. Recoverable

    Courier samples to a client in Dubai

    5%, recoverable.

    Domestic courier services are standard-rated, so the 5% is recoverable.

  2. Recoverable

    Spare parts imported from Germany by express courier

    Import VAT claimable through the return if cleared under your TRN; the duty is a cost.

    Import VAT on the parts is recoverable through your return, but only if the customs declaration shows your TRN. Customs duty isn't VAT, so it stays part of the cost.

  3. No VAT to recover

    Documents couriered to Riyadh

    Zero-rated.

    Sending items out of the UAE is zero-rated, so there's no VAT on the courier charge.

What to keepand what to watch

Documents you need

Courier tax invoice; customs declaration showing your TRN for imports.

Corporate tax

Deductible. Customs duty is a cost of the goods, not VAT.

GL account: Postage and courier / Freight in / Customs duty

Common mistakes

Paying a courier's import VAT recharge without getting the shipment cleared under your TRN, then being unable to claim it. Recording customs duty as VAT.

Reverse charge and imports

Import VAT on goods is accounted for through the return by registered importers whose TRN is on the declaration.

How reverse charge works

Questions peopleask about this

Why does my TRN need to be on the customs declaration?

Import VAT is accounted for through the return by registered importers whose TRN is on the declaration. If a courier clears the parcel under its own account, the import VAT is hard to claim.

Is customs duty recoverable?

No. Duty isn't VAT, so it stays part of the cost.

Can I claim VAT on shipping personal parcels for staff?

No. That's a personal benefit, so the VAT is blocked.

Relatedexpenses

Rules thisanswer relies on