# How UAE customs duty and VAT are calculated on an import from China

Duty is charged on the CIF value at the rate of the 12-digit code; VAT is then charged on the CIF value plus duty.


## The order matters

VAT is charged on a base that already includes duty. Calculating them side by side on the CIF value understates the total.

## Currency

The AED is pegged to the US dollar, so a quote in USD converts at a fixed rate. Purserhouse keeps the original amount and currency and shows the conversion.



Canonical: https://purserhouse.com/en/how/uae-duty-and-vat/