As the global trade is increasing at a rapid rate, the customs and authorities are making themselves better as well. there are so many people who use imported products from different parts of the country. we like to use the things from across the borders a lot but the ones who bring all the goods to us is the hell of a deal. Yes, it is not easy at all to move the goods from one place to another especially when they are in bulk.
When someone provides you with the goods and services that are from across the borders, the customs duties apply on them, not just the customs duty is applied to the people who give the services from across the border but also, they have to pay the import taxes. Now you know why the goods that are imported costs you more money than your local products. The imported goods are not of their same price when they get imported because of all the taxes and customs involved in them.
The people who run small businesses often try to escape the processes of customs and taxes. This is because of the fact that they do does not want to pay extra money for the goods as their businesses are not so established at the moment.
It’s not their fault!
Sometimes it is not the fault of the sellers when they avoid this aspect of the business. This is because sometimes they are not aware that they are selling their products to the people that believe in other countries. Online business plays a great role in this as well. people are trading goods and services on a global level
VAT in UAE
The FTA authority has announced that the people who are doing online businesses will have to pay 5 percent tax. All the purchases from different online portals will cost you additional tax as well.
The 5 percent tax is implemented on every item that costs more than Dh1000. it is to be noted here that every item that will be imported from any other country and will land in the premises of UAE will be charged with 5 percent VAT tax but the site should cost more than DH1000.
It is really important for all the businesses to go ahead and follow the VAT registration Dubai.
Some time ago, it was really cheaper for the sellers to import the goods from abroad but due to the newly implemented tax, the things are not the same anymore. The impact of VAT (value added tax in Dubai) on the businesses has changed so many things.
How are customs duties calculated?
By cost. Yes, the customs duties are calculated with the help of Cost, Insurance, and Freight (CIF) value at the rate of 5 percent.
What about alcoholic products?
50 percent customs duty is applied on the imported alcoholic products in UAE. in addition to that if any kind of tobacco product is being imported, 100 percent customs duty will be applied.