English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

Import VAT is suspended while Goods remain under a customs-duty suspension regime, subject to customs rules and a financial guarantee covering the VAT. Suspension is temporary and is not an exemption.

Who should read this?

Importers, warehouses, free zones and customs-suspension regimes.

Why does it matter?

Customs suspension is conditional and temporary; leaving the arrangement can trigger VAT.

Suspension, not exemptionCustoms regimeFinancial guarantee

Current text

Tax on import shall be suspended if the Goods are placed under one of the customs duty suspension regimes, in accordance with the conditions and controls stipulated in the Unified Customs Law. An Importer who is subject to Tax shall, in this case, provide a financial guarantee which covers the value of Tax calculated in accordance with the rules and controls specified in the Regulations.

Application steps

  1. 1

    Identify the applicable customs suspension regime.

  2. 2

    Check that the guarantee covers the VAT.

  3. 3

    Track movements and evidence closing or ending suspension.

Connected provisions

Thematic link

Law — Article (19)

Place of Import

Helps locate the Import before applying suspension.

Open connected Article
Direct legislative link

Regulations — Article (65)

Payment of VAT on Import

Paragraph (b) makes suspended VAT due on the date the Goods are released and payable to Customs.

Open connected Article

Official guides and tools

Official text

Value Added Tax Law

Article (52)

Official guide

VAT General Guide

Practical guidance relevant to the Article

Illustrative example by Madar

Goods in a customs warehouse

Placing Goods under a customs suspension regime postpones VAT under the guarantee; it does not eliminate VAT when the Goods leave the regime.

Questions to help you apply it

  • Which suspension regime applies?
  • Is the guarantee valid and when does suspension end?