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Buying from international stores: shipping, customs and VAT in Saudi Arabia and the UAE

When is your parcel exempt from customs duty, and why does VAT still apply to small orders? A practical guide to the real cost of shopping abroad.

Updated: 9 November 20264 min readBy the Kobon team

The short version

  • Saudi Arabia: personal online purchases are exempt from customs duty when the total value (goods + shipping + insurance) is under SAR 1,000. VAT at 15% still applies, plus a SAR 15 customs declaration fee.
  • UAE: Dubai Customs exempts cross-border e-commerce goods worth up to AED 1,000 from customs duty from 3 August 2026 (Customs Notice 16/2026), for shipments handled by e-commerce companies registered on its platform, with exclusions. Import VAT at 5% still applies.
  • The common GCC customs duty is 5% of the value including shipping and insurance, for most goods.
  • Work out the landed cost before you pay, not just the item price.

Why the final price isn’t the sticker price

Order from a store abroad and several costs can land on top of the item price: international shipping, import VAT, customs duty above the exemption threshold, and sometimes a clearance fee from the courier. Some stores calculate all of this at checkout. Others leave it for you to pay on delivery. The question to ask every time is simple: is this price “duties and taxes included” or not?

Saudi Arabia: the SAR 1,000 line

The Zakat, Tax and Customs Authority (ZATCA) says personal purchases from overseas online stores are exempt from customs duty when two conditions are met:

  1. The total value is below SAR 1,000, counting the goods, shipping and insurance.
  2. The shipment doesn’t need clearance approval from another authority.

That exemption covers duty only. VAT is collected regardless of the shipment’s value, except where the VAT rules say otherwise, and it’s calculated on the goods, shipping, insurance, customs duty and declaration fees. ZATCA’s customs fee rules also set a SAR 15 declaration processing fee for individuals’ e-store shipments worth up to SAR 1,000.

Worked example: an SAR 800 item with SAR 150 shipping comes to SAR 950, under the line, so no duty. You’ll still pay 15% VAT on the taxable amount, including the declaration fee: roughly SAR 145, for a total of about SAR 1,110. If shipping were SAR 250, the total would cross SAR 1,000 and customs duty would apply too.

Some products need approval from another regulator whatever their value, including cosmetics, supplements, medicines and some wireless devices. These can be delayed or refused if the paperwork isn’t in order.

UAE: the AED 1,000 line

Customs duty in the UAE, as across the GCC, is 5% of the goods’ value including shipping and insurance, with higher rates for items such as tobacco and alcohol. In 2026, Dubai Customs issued a notice exempting cross-border e-commerce goods worth no more than AED 1,000 from customs duty, effective 3 August 2026 (Customs Notice 16/2026). It applies to shipments handled by e-commerce companies registered on Dubai Customs’ platform, not to every parcel entering the UAE, so check with the store or courier. The exemption doesn’t cover tobacco, e-cigarettes and accessories, nicotine liquids or alcoholic drinks.

The UAE’s VAT rate is 5% and it applies to imported goods. A duty-free parcel isn’t a cost-free parcel.

The rest of the Gulf

GCC states share a common external tariff of 5% on most goods imported from outside the customs union, but low-value exemptions and clearance procedures differ by country. VAT differs too: 10% in Bahrain and 5% in Oman, while Kuwait and Qatar haven’t introduced it. Before ordering, check your national customs website or ask the courier what to expect.

Practical tips

  • Look for a “duties included” option at checkout to avoid surprises on the doorstep.
  • Don’t split an order to stay under a threshold. Split shipments can be treated as one.
  • Keep the invoice and the VAT receipt the courier gives you.
  • Read the international return policy. Sending something back abroad can be expensive, and taxes already paid aren’t always easy to recover.
  • Compare with local retailers. A local distributor sometimes sells the same item for a similar price, with a local warranty and easier returns.

This guide is general information, not customs or tax advice. Rules and thresholds change, and the official authority in your country has the final word.

Common questions

Who pays the tax and fees, me or the store?

It depends on the store. Some collect them at checkout and handle clearance; others leave the courier to collect on delivery. Check the shipping page and look for “duties included”.

Sources

We may earn a commission when you buy through partner links, at no extra cost to you. It doesn’t influence our guides.

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