Are imports subject to VAT?
Import VAT will be payable in addition to any customs duty due on movements of goods into the GCC. However, if the importer of record is VAT registered, it is likely that there will be a reverse-charge mechanism available in the UAE to allow the importer to ‘pay’ and ‘recover’ the import VAT at the same time, mitigating any cash flow impact. KSA has indicated it may also allow payment of import VAT through the VAT return in some cases, and other GCC countries may have similar mechanisms in their domestic laws to reduce the cash flow burden for importers.
Courtesy: Deloitte Middle East