EU VAT, IOSS & Customs: Zero Hidden Fees for European Importers

B2B Commercial Taxation Framework

When European Union companies import wholesale commercial goods from the United Arab Emirates, specific customs and value-added tax (VAT) rules apply.

1. Zero-Rated UAE Export VAT (0%)

Under UAE Federal Decree-Law No. (8) of 2017 on Value Added Tax, goods exported outside the GCC implementing states are subject to the zero rate (0%), provided: - The goods are physically exported outside the UAE within 90 days of supply. - Official commercial export documentation (Air Waybill, Customs Declaration Bill, and UAE Exit Certificate) is retained on file.

Therefore, your Arabesque Perfumes proforma and commercial invoices carry 0% UAE VAT.

2. EU Import VAT & Reverse-Charge Mechanism

For commercial B2B orders placed by EU companies with a valid EU VAT / EORI number: - Import VAT: Handled through your national tax authority under the Reverse-Charge Mechanism (or standard customs import VAT deferment), allowing full input tax recovery. - Customs Tariffs: Fragrances under HS Code 3303.00 into the EU are subject to standard common customs tariff duties (typically 0% to 6.5%, depending on the exact bilateral documentation and origin verification).

3. Required Customs Documents for Every Consignment

Arabesque Perfumes supplies a complete, notarized clearance package: 1. Commercial Tax Invoice (specifying currency, Incoterms, and EORI). 2. Itemized Packing List (gross/net weight, master carton counts, batch codes). 3. UAE Chamber Certificate of Origin (COO). 4. Air Waybill (AWB) with IATA UN 1266 DGR notation. 5. MSDS Safety Data Sheet (in English and French/German upon request).