GCC Import Landed Cost and VAT Worksheet
Quoted prices for imported machinery and materials rarely include everything due at the border. This worksheet builds up CIF, customs duty, import VAT and local charges per line so buyers can compare true landed cost.
| Item or shipment | Destination | FOB value | Freight | Insurance | CIF value | Duty rate % | Customs duty | VAT rate % | Import VAT | Clearing and local charges | Landed cost excl. recoverable VAT | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AED 56,060 | AED 2,803 | AED 2,943 | AED 60,313 | |||||||||
AED 90,620 | AED 4,531 | AED 14,273 | AED 98,051 | |||||||||
AED 42,790 | AED 2,140 | AED 2,246 | AED 46,030 | |||||||||
AED 31,650 | AED 1,583 | AED 3,323 | AED 34,133 | |||||||||
AED 12,210 | AED 611 | AED 641 | AED 13,301 |
Enter all amounts in one currency, converted at the rate customs uses. The GCC common external tariff is often 5% but varies by product, with exemptions, higher rates and free zone treatment. Rates shown are examples; confirm duty and VAT per HS code and country with your customs broker. Landed cost excludes VAT on the assumption it is recoverable.
Compare estimated and actual landed cost
Optional: an outline for pulling actual landed cost from your ERP into this layout.
Optional. The tool and every export work without this. No spam.
How to use the worksheet
Add one row per shipment line or item group. Enter FOB value, freight and insurance, then the duty rate and VAT rate for the destination and tariff code. The sheet calculates CIF, customs duty on CIF, VAT on CIF plus duty, and a landed cost that leaves out recoverable VAT. Export to Excel for approval, or paste into a costing file. Change currency symbol by converting values first.
The method behind it
Gulf customs duty is generally assessed on the CIF value. Import VAT is then charged on CIF plus duty, plus other applicable taxes. Standard VAT rates differ across the region: 5% in the UAE and Oman, 15% in Saudi Arabia and 10% in Bahrain, while Qatar and Kuwait did not have VAT at the time of writing. Check current rules before use, since rates and reliefs change. Free zones and designated zones can alter when VAT is due.
Common mistakes
Typical mistakes are applying duty to FOB instead of CIF, forgetting freight when the supplier quotes ex-works, using a default rate where the HS code has a different one, and treating recoverable VAT as cost. Another is ignoring demurrage and storage when clearance is slow. Capture actual clearing charges after each shipment and compare them to the plan.
- Use the correct HS code for each line
- Confirm any duty exemption certificate is on file
- Separate recoverable VAT from cost in your ERP
- Reconcile estimates against the actual customs declaration
Frequently Asked Questions
Is customs duty charged on CIF or FOB?
In the GCC the customs value for duty is typically the CIF value, so freight and insurance are included. Confirm with the customs authority of the destination country for special cases.
Is the 5% duty rate fixed?
No. The common external tariff is often 5%, but some goods have higher rates, exemptions or reliefs, and national rules differ. Look up the HS code with your broker.
Why is VAT excluded from landed cost?
For VAT registered businesses making taxable supplies, import VAT is usually recoverable, so it is not a cost. If your business cannot recover it, add it to the cost manually.
Can I use it for free zone imports?
Partly. Goods entering a free zone often have duty and VAT suspended until they move into the mainland, so set rates to zero for the stage in the free zone and apply them at release.
If you want planned landed cost compared with actual cost in your ERP automatically, we can help design that. The worksheet works on its own.
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