UAE customs will determine fee, but method of payment not yet explained
VAT to be paid on all goods sent by popular Shop & Ship service
The Shop & Ship import service operated by Aramex has said that five per cent VAT will be added to the price of all goods sent to the UAE.
In an email to customers, the company said that from January 1, "Goods imported into United Arab Emirates (UAE) will be subject to 5 per cent VAT as applicable and determined by local VAT Law and its Regulations."
Shop & Ship gives its customers a personalised accommodation address in 80 overseas destinations, including most of Europe, North America and the Far East. It lets UAE customers buy from retailers who do not ship overseas by sending the goods to their address in that country.
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Goods are then forwarded to the UAE by Aramex with a delivery charge based on weight.
A customer service representative at Shop & Ship said the extra VAT charge for each shipment would be determined by UAE customs based on the invoice for the goods. This would apply to all items regardless of value. The VAT charges will also apply in Saudi Arabia.
However, she said the company had not been told how customers would pay the extra tax, but hoped to have clarification within the next week.