The UAE Ministry of Finance (MoF) has announced the introduction of the Value Added Tax (VAT) across the country, effective January 1, 2018.
VAT is a form of indirect tax on the consumption or use of goods and services, applied at the point of sale, and charged on applicable transactions.
A registered business collects the VAT charged to customers on the supply of goods and services, and pays VAT on goods and services purchased from its suppliers. The difference between the VAT collected from customers and the VAT paid to suppliers is then remitted to the Federal Tax Authority (FTA).
VAT has been introduced across the UAE at a standard rate of 5%. Certain supplies of goods and services are subject to a 0% VAT charge, while some are exempt (Refer Federal Decree-law No (8) of 2017 and the Executive Regulations for more details click here.
VAT is a general consumption tax, and applies to the majority of transactions of goods and services, unless specifically exempt by law. TNT will apply and collect VAT, where applicable on its services, from January 1, 2018. Rates and charges on all existing TNT contracts are VAT exclusive.
A business must register for VAT if their taxable supplies and imports exceed the prescribed “mandatory registration threshold.” Additional information for businesses can be found at
VAT-registered businesses generally:
In order to share your Tax Registration details with TNT, please download the template available at tnt.com/ae/vat/, fill in the details, attach the completed template and send it to tnt.uae.vat@tnt.com along with the supporting documents. Additional information including Frequently Asked Questions can also be found in the link. General information about VAT in the UAE can also be found here.
In order for us to continue serving you following the implementation of VAT on January 1, 2018, the following tax registration details are required:
The Tax Registration Number is important for 2 reasons:
TNT requires a copy of the tax registration certificate to verify the information provided, and avoid any administrative errors in invoicing.
To ensure your tax registration details are entered correctly into our systems, it is important to update your tax registration information in the TNT template available at www.tnt.com/ae/vat. Once updated, it should be emailed to tnt.uae.vat@tnt.com along with a copy of your Tax registration certificate (if available).
If you have submitted incorrect information, you can re-submit the correct details along with the supporting documents to tnt.uae.vat@tnt.com.
Yes. You can submit your Tax Registration Number with the supporting documents to tnt.uae.vat@tnt.com when you receive them.
Name of the entity: TNT (UAE) (L.L.C.)
Registered Address: Business Avenue Building 4th Floor, Port Saeed, Deira, PO Box 15321, UAE
Tax Registration Number: 100009354000003
For a copy of TNT Tax Registration certificate please contact your TNT Territory Manager or write to tnt.uae.vat@tnt.com
No. Additional contracts will not be needed. Rates and charges on all existing TNT contracts are VAT exclusive. TNT will apply and collect VAT, where applicable on its services from January 1, 2018.
Yes, VAT applies on goods imported into the UAE (subject to certain exemptions), irrespective of where you are located. VAT charges on goods imported are primarily the liability of the importer or consignee. Depending on the arrangement between you and the importer or consignee, you may be liable to pay the applicable VAT charges in the UAE.
You can claim credit on VAT paid in the UAE only if you are registered with the FTA with a Tax Registration Number.
As per the Cabinet Decision No. (59) of 2017, the import of goods in any of the listed Designated Zones will not be subject to VAT on the value of goods imported. A Designated Zone refers to a free zone specified by a decision of the Cabinet upon the recommendation of the Minister, for the purpose of the VAT Law.
If you are located in a free zone that is not listed as a Designated Zone, the import of goods will be subject to VAT (on the value of the goods imported).
TNT will not charge VAT on value of goods imported in Designated Zones from January 11, 2018, after the decision of the Cabinet was released.
However, please note TNT services provided to you in a Designated Zone are not exempt, and may be eligible for VAT, depending on the nature of services.
If you do not pay VAT on the import of goods, the goods are unlikely to be released by the Customs Authorities. There may also be penalties for non-compliance, as per the VAT regulations.
Your operations in the UAE will be required to pay VAT at the time of filing their VAT return. You are not required to pay VAT at the time of import, even though the shipment is DDP
For shipments with customs declared value above AED 1,000:
For shipments with customs declared value of AED 1,000 and below:
TNT will pay the VAT liability at the time of clearing the imported goods on your behalf, irrespective if you are registered with a TRN with the FTA.
TNT will issue a Tax Invoice for import VAT paid on your behalf. TNT is in the process of adapting its IT systems to account for this change. In the interim, you will receive a separate “request for payment” for VAT on the value of goods imported, in addition to the “request for payment” for other clearance charges.
Please note that due to the implementation of a new law, there may be potential clearance delays.
The VAT on the value of imported goods is calculated as follows:
| Low Value consignments (equal to or less than custom declared value of AED 1,000): | Customs Value, Insurance & Freight (CIF) x 5 % |
| High Value consignments (custom declared value of more than AED 1,000): | (CIF + Excise Tax + Customs Duty + Customs Fees) x 5 % |
For non-document shipments without a declared value, a standard VAT charge of AED 50 will apply.
Documents will not attract VAT on import in the UAE.
You may link your importer code with your TRN by:
For further assistance on linking your TRN with your importer code, please contact Dubai Trade Customer Service.
If your importer code is not linked to your TRN, you will have to complete the VAT declaration form using your TRN directly on the FTA e-services portal https://eservices.tax.gov.ae/ "data-tnt-tracking="name:pagesection_91a1 - link,to://eservices.tax.gov.ae/. The process is as follows:
