All about it
Imports under UAE VAT often confuse taxpayers not because the rules are complex, but because multiple boxes talk to each other. Once the flow is understood, VAT Returns become mechanical and error-free.
This guide explains What goes into Box 3, 6, 7 and 10, and Why, for both imports of goods and imports of services.
Every import has two VAT angles:
The UAE VAT Return captures both sides within the same tax period—but in different boxes.
Box 6 captures import VAT on goods where:
This amount is system-driven and flows automatically from customs records to be checked against your Import Declaration (Form VAT 201)
Think of Box 6 as a raw feed, not a conclusion.
Box 7 is the adjustment and ownership box. It ensures VAT ends up with the right person.
You should use this box only if the information that is prepopulated in Box 6 regarding goods imported into the UAE is incomplete or incorrect.
For example, if you have imported goods worth 1 million AED plus VAT, and this import does not appear to be included within Box 6, you can manually include this within Box 7 (i.e. 1 million) and the respective VAT amount (incomplete). Furthermore, if you have imported any goods which are not subject to the standard rate of VAT of 5% (for example goods subject to the 0% VAT rate), please use Box 7 to adjust the VAT amount accordingly, as by default all of your imports have been assumed to be subject to a 5% VAT rate (incorrect).
If Box 6 is correct and ownership is undisputed, Box 7 becomes a pass-through confirmation, not an active intervention.
Where the owner and the importing agent do not wish to make the adjustments stated in section B above, the importing agent may issue a statement to the owner which contains, at the minimum, all of the following details:
a. The name, address, and Tax Registration Number of the importing agent.
b. The date upon which the statement is issued.
c. The date of Import of the relevant Goods.
d. A description of the imported Goods.
e. The amount of Tax paid by the importing agent to the Authority in respect of the imported Goods.
This statement issued by the importing agent to the owner of the goods shall be treated as a ‘Tax Invoice’ for the purposes of the documentation requirements for Recovery of Recoverable Input Tax in the Tax Period and can be recovered via Box 9 of the Tax Return. Important to remember that Box 10 recovery by the owner presumes Box 7 declaration unless the alternative statement route is used.
Box 7 therefore ensures:
Last but not the least, Difference on account of Exchange Rate valuation and Time Lag, not to be considered for ‘Adjustments’ in Box 7. Let these be part of your Reconciliation document.
Treat the Box 7 as sacrosanct box to be touched only by incompleteness or incorrectness based on one’s Import Declaration. Any other activity in Box 7 and too often may invite FTA’s attention and a probable Tax Audit Notification.
Box 3 deals with services imported from outside the UAE, such as:
While Box 3 is primarily import-driven, it also captures specified domestic reverse charge supplies [‘Local Supplies’]*.
No customs, no Box 6 involvement—services move directly into Box 3.
The only circumstance where a purchase of imported goods should be reported in this box would be where the movement was not declared via UAE Customs for some reason.
*Plus, report Local supplies [‘domestic reverse charge supplies’] subject to the reverse charge provisions (specific supplies within the oil and gas industry where Recipient need to account for VAT subject to specific constraints of ‘declaration’) and as per Cabinet Decisions (as of now, these include Precious Metals and Precious Stones, Electronic Devices, Metal Scrap)
Box 10 is where VAT relief actually happens.
If an import is for fully taxable supplies, the same VAT amount often appears:
Any element of the VAT incurred on expenses which were subject to the reverse charge mechanism, and which is not recoverable, should not be reported in ‘recoverable VAT amount’ column.
Result: Cash-neutral, but fully compliant.
For example, if you previously declared supplies of 1 million AED which were subject to VAT under the reverse charge mechanism in Box 3 of the VAT return, you should also have declared 50,000 AED of output tax due on that supply. If you are entitled to recover all of the VAT incurred under the reverse charge mechanism, you should declare the same value of supplies in Box 10 and recover the same value of VAT.
If, however, you are only entitled to recover half of the VAT incurred under the reverse charge mechanism then in Box 10 you should declare 1 million AED in the “amount” column and 25,000 AED in the “recoverable VAT amount” column. Even where you can’t recover all of the VAT incurred on the supply, it is important that the full value of the supply and the output tax due to the FTA has been included within Box 3 above.
Imported Goods (Direct Import)
Imported Goods (Through Agent)
Imported Services
Final Takeaway
If you remember only this:
When these four boxes are aligned, imports under VAT stop being confusing and start becoming routine.
This structure lets you file confidently—and defend your return comfortably during audits.
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Reading Materials:
[I] From :VAT-Returns-User-Guide
Box 3: Supplies subject to the reverse charge provisions You should declare in Box 3 the value of supplies of goods and services received which are subject to VAT under the reverse charge mechanism. This includes imports of services where the customer is required to account for the VAT. Please disregard any imports of goods that have been declared to UAE customs during this Tax Period which are subject to the reverse charge and for which the import VAT is reported separately in Box 6. As a result, in most cases the values declared within this box will relate only to purchased services which are subject to the reverse charge mechanism. The only circumstance where a purchase of imported goods should be reported in this box would be where the movement was not declared via UAE Customs for some reason. The value to be included in these boxes include only the net value and VAT value of the output tax due on these supplies. If the taxable person is entitled to recover the VAT on the supply as input tax, that will be recovered in Box 10 of the VAT return.
Please refer to the table below for some examples of what to be included and not included into this Box: Please include the f
Please include the following:
· Services received from foreign suppliers which are subject to the standard rate of VAT
· Services received from foreign suppliers which are subject to the zero rate of VAT
· Goods received which are subject to the reverse charge provisions and have not been declared to UAE customs (e.g. through an import declaration)
· Local supplies subject to the reverse charge provisions (e.g. specific supplies within the oil and gas industry) P
Please exclude the following:lude the following:
· Imports of goods into the UAE which are subject to the reverse charge provisions but which have been declared to UAE customs and therefore will be reported in Box 6 of the VAT Return.
Box 6: Goods imported into the UAE Box 6 will include the net value and the output tax (i.e. VAT amount) due on goods which have been imported into the UAE. This will include all imports which have been declared through UAE Customs where payment of the VAT on import is to be made on the VAT return. The value of this box (“Amount (AED)”) should be auto-populated based on imports you have declared under your customs registration number, which should be linked to your TRN. Please note that this amount will also include any customs duties and any Excise Tax that you have paid on the goods imported within this Tax Period. The respective output tax amount (“VAT Amount (AED)”) will also be auto-populated by applying a 5% VAT to the net value amount. You should check that the values which have been included in this box match the values you expected to declare, based on the import declarations you have submitted during the tax period. If you are an agent who imports goods into the UAE on behalf of non-registered persons, it is your responsibility to pay the tax in respect of the import of goods. Therefore, such imports should also appear in this box. Please refer to the table below for some examples of what should be included in this Box:
Please include the following:
You should use this box only if the information that is prepopulated in Box 6 regarding goods imported into the UAE is incomplete or incorrect. If this is the case, you can use this box to make adjustments accordingly. The amounts of adjustments included into this box could be positive or negative, and you should be able to justify them, if asked to by the FTA. Please adjust accordingly, the net amount field and/or the VAT amount field depending on the adjustment to be made.
As noted above, VAT at the point of import is imposed on the Value of the import which comprises of the customs value as defined in the Customs legislation, including the value of insurance, freight and any customs fees and any Excise Tax paid on the import of the goods into the UAE. Therefore, import VAT will be imposed on top of your customs duties and Excise Tax inclusive value.
If any imports appear to have been excluded from Box 6 or appear to be incorrect, when comparing them to the amounts reported in your customs and (if applicable Excise Tax) import declarations, you can use Box 7 to make adjustments accordingly. For example, if you have imported goods worth 1 million AED plus VAT, and this import does not appear to be included within Box 6, you can manually include this within Box 7 (i.e. 1 million) and the respective VAT amount (if any). Furthermore, if you have imported any goods which are not subject to the standard rate of VAT of 5% (for example goods subject to the 0% VAT rate), please use Box 7 to adjust the VAT amount accordingly, as by default all of your imports have been assumed to be subject to a 5% VAT rate. Please note that it is your responsibility to identify such adjustments that are required to be made and adjust them through your VAT Return using Box 7. In order to be able to identify such adjustments which may be required, you may use the “View Details” option available on your screen in order to see how both the net amount of your total imports under “Amount (AED)” and the respective output tax or import VAT under “VAT Amount (AED)” in Box 6 are comprised.
If you are an agent who imports goods into the UAE on behalf of non-registered persons, it is your responsibility to pay the tax in respect of the import of goods. Therefore, if any such imports have been excluded from Box 6 or appear to be incorrect, you can use Box 7 to make adjustments accordingly for such amounts and/or the respective output tax as well.
Box 10: Supplies subject to the reverse charge provisions Box 10 allows you to recover any VAT you have paid as output tax under the reverse charge mechanism which was declared in Boxes 3, 6 and 7 of the VAT return. If you are entitled to recover some or all of the VAT declared under the reverse charge mechanism, you should include the full net value of the expenses and the recoverable VAT applicable on those expenses. Any element of the VAT incurred on expenses which were subject to the reverse charge mechanism and which is not recoverable, should not be reported in any of these boxes.
For example, if you previously declared supplies of 1 million AED which were subject to VAT under the reverse charge mechanism in Box 3 of the VAT return, you should also have declared 50,000 AED of output tax due on that supply. If you are entitled to recover all of the VAT incurred under the reverse charge mechanism, you should declare the same value of supplies in Box 10 and recover the same value of VAT. If, however, you are only entitled to recover half of the VAT incurred under the reverse charge mechanism then in Box 10 you should declare 1 million AED in the “amount” column and 25,000 AED in the “recoverable VAT amount” column. Even where you can’t recover all of the VAT incurred on the supply, it is important that the full value of the supply and the output tax due to the FTA has been included within Box 3 above.
Please refer to the table below for some examples of what to be included and not included into this Box:
Please include the following:
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[II] Extracts of the Laws & Regulations:
“VAT DL” stands for -> Federal Decree-Law No. 8 of 2017 as latest amended by Federal Decree-Law No. 16 of 2025 – Issued 1 Oct 2025 (Effective from 1 Jan 2026)
“ER to VAT” stands for -> Executive Regulation of the VAT DL issued by Cabinet Decision No. 52 of 2017 as latest amended by Cabinet Decision No. 100 of 2025 – Issued 12 Aug 2025 (Effective from 29 Sep 2025)
Article 35 – Value of Import [VAT DL]
The Import value of Goods consists of:
1. The customs value pursuant to Customs Legislation, including the value of insurance, freight and any customs fees and Excise Tax paid on the Import of the Goods. Tax shall not be included in the value of the supply.
2. If it is not possible to determine the value pursuant to Clause 1 of this Article, the value shall be determined based on alternate valuation rules stated in the applicable Customs Legislation.
Article 48 – Reverse Charge [VAT DL]
1. If the Taxable Person imports Concerned Goods or Concerned Services for the purposes of his Business, then he shall be treated as making a Taxable Supply to himself, and shall be responsible for accounting for the Due Tax on that Supply and complying with all other Tax obligations arising, with the exception of issuing a Tax Invoice to himself.
2. As an exception to Clause 1 of this Article, in case the final destination of the Goods when entering the State is another Implementing State, the Taxable Person shall pay the Due Tax on Import of Concerned Goods pursuant to the mechanism specified by the Executive Regulation of this Decree-Law.
7. The Executive Regulation of this Decree-Law shall specify:
Article 49 – Import of Concerned Goods [VAT DL]
A Person not registered for Tax shall settle Due Tax on Import of Concerned Goods from outside the Implementing States on the date of Import pursuant to the settlement mechanism specified by the Executive Regulation of this Decree-Law.
Article 47 – General Rules regarding Import of Goods [ER to VAT]
1. Without prejudice to the provisions of the Decree-Law and this Decision, Goods shall not be treated as imported into the State according to the following:
a. Where they are under customs duty suspension arrangements in accordance with the GCC Common Customs Law, and subject to providing a financial guarantee or a cash deposit equal to the value of the Due Tax if and when requested by the Authority, in the following cases:
1) Temporary admission
2) Goods placed in a customs warehouse.
3) Goods in transit.
4) imported Goods intended to be re-exported by the same Person.
b. Imported into a Designated Zone from a place outside the State.
2. Tax shall not be due on any Import of Goods where they are under an exemption from Customs duty under the following categories in accordance with the GCC Common Customs Law:
a. Goods imported by the military forces, and internal security forces.
b. Personal effects and gifts accompanied by travellers.
c. Used personal effect and household items transported by UAE nationals living abroad on return or expats moving to live in the UAE for first time.
d. Returned Goods.
3. Where a Person imported Goods to the State through another Implementing State the Tax will not be due on that Import, if the Authority establishes that Tax is due on the supply or transfer of Goods in that other Implementing State.
4. The Authority may specify procedures to be followed by Importers and Customs Departments in respect of the Import of Goods.
Article 48 – Calculation of Tax under the Reverse Charge Mechanism on import of Concerned Goods or Concerned Services [ER to VAT]
Article 49 – Payments for Goods Transferred to another Implementing States [ER to VAT]
1. For the purposes of Clause 2 of Article 48 of the Decree-Law, the Taxable Person must make a payment of the Due Tax by using the payment method specified by the Authority.
2. Unless expressly approved by the Authority to defer the payment of Due Tax, the payment referred to in Clause 1 of this Article shall be made at the time or before the Import of the Goods as directed by the Authority.
Article 50 – Special Rules of Import [ER to VAT]
1. Where Concerned Goods are imported by a Person not registered for Tax or where the Taxable Person does not meet the conditions in Clause 1 of Article 48 of this Decision, Tax shall be paid to the Authority by or on behalf of the Person before these Goods may be released.
2. The Customs Departments shall cooperate with the Authority to ensure that Payable Tax on Import has been settled before releasing of Goods.
3. Tax referred to in Clause 1 of this Article must be settled using the payment method specified by the Authority.
4. For the purposes of Clause 1 of this Article, where a Person who is not registered for Tax imports Goods is using an agent who acts on behalf of the Person for the purposes of importing the Goods into the State and who is registered for Tax in the State, the agent shall be responsible for the payment of the Tax in respect of such imported Goods.
5. For the purposes of Clause 4 of this Article, the Tax shall be reported and paid through the agent’s Tax Return as though the agent himself was the importer of the Goods.
6. An agent who has paid Tax in accordance with Clause 4 of this Article shall not recover as Input Tax any Tax paid on behalf of another Person in accordance with obligations set out in this Article.
7. Where an agent has paid Tax on behalf of another Person is accordance with this Article, it shall issue a statement to that other Person which contains, at the minimum, all of the following details:
a. The name, address, and Tax Registration Number of the agent.
b. The date upon which the statement is issued.
c. The date of Import of the relevant Goods.
d. A description of the imported Goods.
e. The amount of Tax paid by the agent to the Authority in respect of the imported Goods.
8. The statement issued by the agent to a Person in accordance with this Article shall be treated as a Tax Invoice for the purposes of the documentation requirements in paragraph (a) of Clause 1 of Article 55 of the Decree-Law.
[III] VAT Public Clarification and Cabinet Decisions
With over 25 years in Dubai and nearly 30 years as a Chartered and Management Accountant, Hemant has extensive experience across manufacturing, services and technology sectors. He has worked with major corporate groups including Al Tayer, Saif Al Ghurair, Dhabi, and Aditya Birla. Hemant specializes in profitability and cost management, debt restructuring, contract management, and regulatory compliance, having generated approximately USD 47.5 million in savings and profit growth. A confident public speaker and Distinguished Communicator, he lives by the quote: “You get what you reward for. If you want ants to come, you put sugar on the floor” (Charlie Munger), embodying his belief that “Profit has its own intelligence.”
Archana Mundhra is a qualified Chartered Accountant with over 15 years of experience in multinational corporations. Her proficiency lies in financial planning and business intelligence. Her deep financial understanding and profound analytical skills empower her to assist management in realizing their objectives effectively.
Rinkle Jain is a qualified Chartered Accountant and Fellow Member of the Institute of Chartered Accountant of India. A results-driven Chartered Accountant with a distinguished career marked by proficiency in management, financial planning, and catalyzing overall company development.Demonstrates a unique blend of financial acumen, strategic insight, and leadership prowess, contributing significantly to organizational success.
