Customs Duties and Taxes for Japanese Cars in the UAE
Look, you found a great Japanese car. The price is right. You are ready to make a move. But then you pause. What’s the final number? The real, on-the-road-in-Dubai number? It’s a smart question—a brilliant one.
The price of the car is just one line on the final invoice. You have to account for the official charges to get a vehicle from a port in Japan to your garage here in Dubai. The duties. The taxes. The fees. Think of this as your guide to the full bill. We’ll walk through it line by line. No surprises. No bill shock. Just a clear look at the customs duty on cars in the UAE.
Why Understand Customs Duties Before Importing?
Let’s be direct. Nobody likes unexpected costs—massive ones. When you import a car, the duties and taxes are a substantial part of the total expense. A very considerable part. Understanding these costs upfront is the difference between a smart, budgeted purchase and a stressful, expensive mistake.
Knowing the numbers allows you to calculate your actual budget. You can then bid on cars in Japan with complete clarity. It’s the foundation of a good import strategy.
Overview of Car Import Regulations in the UAE
Before we talk numbers, here is a quick recap of the main UAE car import rules. As of September 2025, the regulations are unambiguous here in Dubai.
First, the car must be left-hand drive (LHD) and registered for everyday road use. Second, there are age restrictions, typically for vehicles older than four years. Third, you must be a UAE resident with a valid visa and Emirates ID. These rules are the gatekeepers. Your car must meet these criteria before considering the tax bill.
Customs Duty on Imported Japanese Cars
The first major line item on your invoice is customs duty. The import duty for cars in Dubai is a flat 5%.
But 5% of what, you ask? A good question. Dubai Customs calculates this on the car’s CIF value. CIF stands for Cost, Insurance, and Freight. So, the 5% duty is on the total of:
- The car’s purchase price.
- The marine insurance cost.
- The shipping cost from Japan to Dubai.
It’s a standard formula used worldwide. Predictable. Manageable.
VAT and Additional Taxes for Imported Cars
Next up is the Value Added Tax, or VAT. The VAT on car imports in the UAE is also 5%.
Now, this is the part people often get wrong. The 5% VAT is calculated on the CIF value plus the 5% customs duty you paid. It’s a tax on the total value after applying the first tax. Let’s do the math. If a car’s CIF value is AED 100,000, the duty is AED 5,000. The new total is AED 105,000. The 5% VAT applies to that number. It’s a small detail, but essential for an accurate budget.
Registration Fees and RTA Requirements in Dubai
Your car has cleared customs. Great. You are not done yet. Register it with the Roads and Transport Authority (RTA). This comes with its own set of fees.
The big one is the RTA inspection. Before a car gets Dubai plates, it must pass a safety and roadworthiness test. There are also fees for opening a traffic file, for the registration itself, and for the license plates. While these car registration fees in the UAE are smaller than the customs bill, you still have to account for them.
How Customs Clearance Works for Imported Cars
The customs clearance for cars in Dubai is a formal procedure. It happens at the port of entry, usually Jebel Ali. Your clearing agent—that’s us—submits all the required documents to Dubai Customs. The officials review the paperwork, verify the car’s value, and issue a payment order for the duty and VAT.
Once we settle the payment, they give us the Vehicle Clearance Certificate (VCC). The VCC is the document that proves your car is now legally in the UAE. It’s the key you need to begin the RTA registration process.
Exemptions and Special Cases (Classic, EV, GCC-Spec Cars)
The 5% + 5% rule is standard. But are there exceptions? A few.
Classic cars, usually over 30 years old, sometimes have different duty calculations or rules. Electric vehicles (EVs) might be eligible for government incentives, though this changes. And then there are GCC-spec cars. A car already registered in a GCC country like Saudi Arabia or Oman follows different GCC car import regulations and may have lower or no duties. These are exceptional cases. We can advise you if your car falls into one of these categories.
Common Mistakes Importers Make with Duties & Taxes
We’ve seen importers make a few common errors. The biggest is to undervalue a car on the invoice to pay less tax—a bad idea. Dubai Customs has a sophisticated system that values vehicles. If they find a discrepancy, you face fines and long delays.
Another mistake is forgetting VAT. People budget for the 5% duty but forget the extra 5% VAT. The last error is that the budget for the local RTA fees is not being budgeted. A smart importer accounts for every single charge from start to finish.
How Skyery Auto Simplifies the Import & Customs Process
So how do we help? We give you the full invoice upfront—a complete, itemized breakdown. Before bidding on a car, you will see a pro forma invoice from us. It will show the car’s estimated price, the shipping cost, the customs duty, the VAT, and all the port and service fees.
No hidden charges. No surprises. We are a Japanese car import UAE specialist with offices in Japan and Dubai. Our team in Japan handles the export. Our team in Dubai handles the customs clearance. It’s a single, clear channel. We manage the paperwork. We process the payments. We make the whole procedure a known quantity.
Final Tips for Cost-Effective Car Import
Want to be smart with your money? Here are three final tips.
First, budget for the total landed cost, not just the car’s price. Use a car duty calculator for the UAE or ask us to do it for you. Second, all your documents must be ready and accurate. This prevents costly delays at the port. Third, work with a partner who believes in transparency. When it comes to taxes and duties, clarity is everything.
