Importing a Car to UAE: Taxes, Customs and Inspection Explained

Importing a car into the UAE can be a wise decision, especially if you are relocating, searching for a model not available locally, or aiming for better value. However, while the process itself is straightforward, authorities regulate it strictly. In 2025, UAE regulators are tightening checks on documentation accuracy, vehicle history, emissions standards, and declared value.

Therefore, if you are importing a car into the UAE, you must understand the entire process before the vehicle leaves its country of origin. When buyers prepare properly, they save money, avoid port storage penalties, and significantly reduce the risk of inspection failure.

This guide explains each step clearly, avoids unnecessary jargon, and focuses on what truly affects buyers.

Understanding Car Import Taxes and Customs Duties in the UAE

Customs duty explained

The UAE charges a standard 5 percent customs duty on most imported passenger vehicles. Customs duty is calculated using the CIF value, which includes:

• Vehicle purchase price

• Shipping cost

• Insurance or cargo coverage

For example, when a car’s CIF value reaches AED 100,000, customs duty comes to AED 5,000.

However, while this 5 percent rate applies to most standard vehicles, authorities may require additional permits for special categories, high-value vehicles, or non-standard imports. In rare cases, these vehicles may also face higher duty rates.

VAT you must budget for

After customs duty, authorities apply a 5 percent Value Added Tax (VAT) to the duty-inclusive value. In other words, VAT is calculated on:

As a result, compound taxation pushes the total tax impact to around 10–10.5 %, even before inspection and registration fees are factored in.

Importers must pay VAT during customs clearance. Moreover, buyers must present proof of VAT payment to complete registration.

Are any vehicles exempt?

Although exemptions exist, authorities apply them narrowly and verify them strictly. These exemptions may include:

• GCC-manufactured vehicles with proof of origin

• Diplomatic imports under official agreements

• Returning residents under approved schemes

Nevertheless, electric, luxury, and classic cars generally follow the same tax structure unless authorities grant a formal exemption.

Vehicle Age Rules and Classification You Must Know

The UAE generally restricts used-vehicle imports to cars under 10 years old, calculated from the manufacturing date.

• Vehicles older than 10 years usually require special approval, which authorities do not grant automatically.

• Officials calculate age from the actual production date, not the model year.

Classic cars (30+ years)

Cars over 30 years old may qualify as classic vehicles. However, these vehicles follow a different process:

• Special technical inspections

• Separate registration procedures

• Limited annual mileage in many cases

• Restricted usage, such as weekends or events

Therefore, ignoring age rules remains one of the fastest ways to trigger delays or outright rejection.

Required Documents for Importing a Vehicle

Paperwork errors remain the most common reason cars face delays at UAE ports. To avoid this, importers must ensure all documents remain complete and consistent:

• Original vehicle title and registration

• Purchase invoice showing declared value

• Passport copy and UAE visa or Emirates ID

• Bill of lading from the shipping company

• Export certificate from the country of origin

• Insurance documents

Even minor mistakes in names or VINs can quickly lead to inspections or reassessments.

Vehicle Inspection and Compliance Process

After customs clearance, the vehicle must pass inspection before registration.

What inspectors check?

Inspectors focus on safety, legality, and originality:

• Chassis and engine numbers

• Accident or structural damage

• Emissions compliance

• Left-hand drive requirement

• Signs of odometer tampering

Consequently, vehicles with flood damage, salvage titles, or major structural repairs often fail inspection and cannot proceed to registration.

Right-hand drive vehicles

Although some right-hand drive vehicles clear customs, authorities generally do not approve them for regular road registration. Only a few exceptions exist, and these usually apply to properly classified classic cars.

The Road and Transport Authority (RTA) manages inspection and registration across Dubai.

Step-by-Step Process From Port to Plates

Most successful imports follow this sequence:

1. Vehicle arrives at the UAE port

2. Importer submits a customs declaration and pays duty

3. VAT settlement follows

4. Vehicle undergoes inspection and testing

5. Buyer purchases insurance

6. Authorities issue registration and number plates

Because each step depends on the previous one, missing paperwork can halt the process immediately.

What Importing a Car to the UAE Really Costs You

Importing involves far more than the purchase price. Buyers should also budget for:

• 10–12 % combined customs duty and VAT

• Shipping and port handling charges

• Inspection and registration fees

• Insurance and testing costs

Once all costs are added, total import expenses often exceed the purchase price by 13-18%, depending on vehicle type, condition, and emirate.

If buyers underestimate costs, vehicles may sit in ports as daily storage fees rise.

Why Common Mistakes Are Costly in 2025

Fortunately, many import delays are avoidable. The most common mistakes include:

• Declaring undervalued invoices

• Importing right-hand drive vehicles for daily use

• Shipping cars with unpaid loans or liens

• Ignoring accident history or emissions standards

Authorities cross-check declared values against international pricing databases. As a result, penalties may include fines, reassessment, or even vehicle seizure.

Practical Tips for a Smooth Import

• Get a full vehicle history report before purchase

• Confirm UAE compliance before shipping

• Use a licensed customs clearing agent

• Ensure the vehicle is immediately after clearance

Ultimately, preparation costs far less than correction.

Quick Checklist Before You Ship

• All documents verified and matching

• Vehicle age and history checked

• Compliance confirmed in writing

• Import taxes and fees are budgeted

Frequently Asked Questions

How much tax do I pay to import a car into the UAE?

In most cases, buyers pay around 10 % of the CIF value, including customs duty and VAT.

Can I import a used car?

Yes! However, condition matters more than age, and standards vary by emirate.

How long does the process take?

Typically, the process takes 7 to 14 working days when documents are complete.

Is importing cheaper than buying locally?

Sometimes! However, costs depend on vehicle type, shipping charges, and condition.

Final Thoughts for 2025 Buyers

Importing a car into the UAE can make strong financial and practical sense when planned properly. The system clearly rewards buyers who prepare early and penalizes those who rely on assumptions. By understanding import taxes, respecting age and inspection requirements, and budgeting beyond the purchase price, you keep your vehicle moving forward rather than stuck in customs or in paperwork delays.

As a result, informed buyers in 2025 face fewer surprises and far fewer delays.

Before you make a decision, stay up to date on the latest import rules, cost breakdowns, and buyer guides. Explore more expert insights, car ownership advice, and UAE market updates on the ArabWheels blog.