Import duty and VAT on a used car from Korea to the UAE
A used passenger car shipped from Korea to the UAE pays 5% customs duty on its customs value (car price + freight + insurance) and then 5% VAT on that value plus the duty. On a ₩80,000,000 car (about $59,130) landed at Jebel Ali, the two taxes come to roughly AED 22,935 (about $6,245) before fees and registration.
The 5% customs duty and what it applies to
The rate comes from the GCC Customs Union, not from Dubai or Abu Dhabi. The Federal Authority for Identity, Citizenship, Customs and Port Security publishes that "the common customs tariff of the GCC Customs Union shall be 5 % on all foreign goods imported from outside of the Customs Union with effect from 1/1/2003". A used car from Korea is foreign goods, so 5% applies; the car's age does not change the rate.
Base of the duty: the Dubai Customs Service Guide sets duty at 5% of the value including cost, freight and insurance, with alcohol and tobacco the only exceptions. In plain terms, customs value = price paid for the car + ocean freight to the UAE port + marine insurance. The Dubai Customs Customer Guide describes the same base for ad valorem duty.
For a Korean purchase: the dealer invoice in won is only the first component; what is paid to the shipping line and insurer to reach Jebel Ali or Khalifa Port is added before the 5% is applied.
VAT at import: 5%, paid before release
The Ministry of Finance records that "Value Added Tax (VAT) was introduced across the UAE on 1st January 2018 at a standard rate of 5%" and that "VAT is also imposed on imports of goods and services".
Who pays and when: the Federal Tax Authority FAQ is explicit: "In case the recipient in the State is a non-registered person for VAT purposes, VAT would need to be paid before the goods are released to the person." For a VAT-registered company, "VAT would be due on that import using a reverse charge mechanism", i.e. through its VAT return rather than at the port.
Base of the VAT: the FTA's VAT Import Declaration User Guide states that "Import VAT is calculated on the value of the goods inclusive of any customs duty and excise tax that may also be due." The two taxes together therefore come to 10.25% of the customs value (5% + 5.25%).
Customs service fees in Dubai and Abu Dhabi
Dubai: the Dubai Customs declaration service page (updated 15/09/2026) lists "Import: AED 15.00 – AED 100.00" depending on declaration type; the Customer Guide tariff table lists "Import to Local from ROW" at AED 70 for dutiable goods and AED 80 for non-dutiable goods, so a used car pays AED 70. On top, "AED 20 Knowledge and Innovation fees will be added on top of any service costs AED 50 and above". The Vehicle Clearance Certificate needed for registration is "AED 30.00 per Vehicle". Amending invoice-level data after submission carries "a fine of AED 500".
Abu Dhabi: the Abu Dhabi Customs Services Fees Guide lists "Import declaration for non-exempt (dutiable) goods" at AED 70, a "Vehicle Clearing Certificate (VCC)" at AED 30, and a "Clearance services fee at land border centers" of AED 150 (road entry only).
Registration: the RTA page for registering a new vehicle (updated 03-September-2026) requires an "Electronic Customs Certificate" and a "Sale and Purchase Agreement", and, where the customs card does not already confirm GCC conformity, a "Document proving that the vehicle is compliant with the Gulf Specifications (Ministry of Industry and Advanced Technology - Conformity Sector)". The registration fee for light vehicles is AED 400; conformity testing and inspection costs are not covered here.
Does GCC origin matter?
Only for GCC-made goods: "national products shall be allowed to move freely among the member States accompanied by their local invoices and statistical declaration" (ICP). A car built in Korea and shipped from Incheon or Pyeongtaek is foreign goods wherever the buyer lives, so the 5% is due at the first GCC port of entry.
Cars that already paid duty in another GCC state: the Dubai Customer Guide covers this case for HS headings 8702 and 8703: "the Due number shall be granted only if the vehicles are moved between GCC states within the period of 2 years." A car cleared in Oman and moved to Dubai within two years can avoid a second 5% if proof of the first payment (the Makasa mechanism) is in order. This does not apply to a car sailing directly from Korea.
Worked example: a ₩80,000,000 car into Dubai
Rates used: 1 USD = 1,353 KRW (Trading Economics, 15 September 2026) and 1 USD = 3.6725 AED, midpoint of the Central Bank of the UAE intervention band of "3.672 when buying US dollars" and "3.673 when selling US dollars". Freight and insurance are assumptions, not quotes.
Car price: ₩80,000,000 = about $59,130 = AED 217,147.
Freight to Jebel Ali (assumed): $1,500 = AED 5,509. Insurance (assumed): $300 = AED 1,102.
Customs value: 217,147 + 5,509 + 1,102 = AED 223,758 (about $60,930).
Customs duty at 5%: AED 11,188 (about $3,046).
VAT base: 223,758 + 11,188 = AED 234,946. VAT at 5%: AED 11,747 (about $3,199).
Duty and VAT together: AED 22,935, about $6,245, or 10.25% of the customs value.
Dubai Customs fees: declaration AED 70, AED 20 knowledge and innovation fee and AED 30 for the Vehicle Clearance Certificate, AED 120. RTA registration adds AED 400 for a light vehicle. The government side of landing this car is therefore about AED 23,500 (about $6,400), excluding conformity testing, inspection, plates and broker charges.
For a Mercedes-Benz E-Class or Genesis G80 from the catalogue at a different price, the method is identical: convert the won price, add freight and insurance, apply 5%, add the duty back, apply 5% again.
Exemptions: free zones and transit
Free zones: the Dubai Customer Guide lists goods "Admitted into Free zones and Duty-Free Shops" among the cases where duty is suspended. A car held in Jebel Ali Free Zone for storage or onward sale pays no duty while it stays there; duty and VAT fall due when it enters the local market. This suits a dealer, not a private owner who wants to drive the car in Dubai.
Transit and re-export: "the goods in-Transit from one country of ROW to another country of ROW can be transported through Dubai Customs territory under Customs control." A car bound for Oman, Iraq or Central Asia can pass through Jebel Ali under a transit declaration ("Transit: AED 15.00 – AED 80.00") without UAE duty, but cannot be registered or driven locally. Cancelling an import declaration to reissue it as import-for-re-export costs "a fine of AED 300", so the regime should be decided before filing.
What KingStone checks before you pay
Insurance-history report: before a car is bought out for a client, the Korean insurance-history record is pulled to see whether accident payouts were made, how large, and whether repairs involved bolt-on panels (bumper, fender, door) or structural members (pillars, sills, cross-members). Frame-level repairs mean the car is declined regardless of price.
Lien and encumbrance check: the Korean registration record is checked for loans, seizures or unpaid fines attached to the vehicle. A car with a lien cannot be deregistered for export until it is cleared, so this is confirmed before money moves.
Official-import status and mileage plausibility: for foreign brands, the record shows whether the car came through the official Korean importer or a grey importer, which affects parts and warranty history. The odometer is compared with inspection and insurance record dates; mileage that does not fit the timeline is a reason to reject the car.
Open questions
Freight and insurance from Korea to Jebel Ali were not verified against a shipping line's published tariff, so the $1,500 and $300 inputs are placeholders. No primary source was found on whether Dubai Customs applies its own valuation database rather than the invoice for used cars; treat the calculation as the method, not the outcome. MoIAT conformity fees and Abu Dhabi registration fees were not researched.
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