CUSTOMS · UK AND UAE

UK and UAE import rules for parcels from India: the £135 and AED 1,000 lines

The UK and the UAE are the two destinations where a parcel's value decides not just how much is paid but who pays it and when. Both have a clear line: £135 of goods value in the UK, AED 1,000 in Dubai. On one side of it the seller charges tax at checkout; on the other the courier collects it at the door.

By Ravi Shrivastav, founder, ExpressBox · Updated 27 Oct 2026

United Kingdom: duty above £135, VAT on everything

Customs duty applies only when the goods are worth more than £135 (excluding shipping and insurance). At or below that, no duty is charged, a relief the UK government has announced it will abolish by October 2028. Import VAT at 20%, on the other hand, applies at any value; what changes at £135 is who collects it.

Sale of £135 or less to a UK consumer: the seller must be registered for UK VAT, charge 20% at the point of sale, and show the VAT number on the invoice. The parcel then clears without a VAT charge at the border. An Indian seller without a UK VAT registration cannot lawfully sell at this value band to UK consumers direct; selling through a marketplace that collects VAT, or shipping DDP through a carrier's import-VAT scheme, are the workarounds.
Sale above £135: the carrier collects import VAT and duty from the receiver before delivery (or from the seller under DDP), plus a handling fee of around £8 to £12.
Gift from one private individual to another: VAT-free up to £39, taxed on arrival above it. The sender must be a person, not a business, and the parcel must be marked as a gift on the declaration.

Duty rates above £135 follow the UK Global Tariff: 0% on most books and many electronics, 8% to 12% on most garments, 2% to 4% on silver jewellery. Goods of Indian origin may qualify for a reduced rate under the UK's Developing Countries Trading Scheme when the invoice carries an origin statement.

United Arab Emirates: AED 1,000 duty-free, 5% VAT regardless

Dubai Customs Notice 16/2026, in force from 3 Aug 2026, sets the threshold for e-commerce and courier consignments at AED 1,000: parcels at or below that value enter Dubai free of customs duty. Above it, duty is 5% of the CIF value under the GCC Common Customs Tariff. Abu Dhabi publishes the same AED 1,000 figure. VAT at 5% applies to every import whatever its value, and for a receiver who is not VAT-registered the courier collects it before delivery along with the duty.

There is no separate gift allowance for courier parcels in the notices we have checked, so a gift to the UAE is treated like any other parcel: no duty up to AED 1,000, 5% VAT either way.

Side by side

	United Kingdom	UAE (Dubai)
Duty-free up to	£135 goods value (to be abolished by Oct 2028)	AED 1,000
Duty above that	UK Global Tariff rate by HS code	5% of CIF
VAT	20%, at any value	5%, at any value
Who collects VAT on a low-value sale	The seller, at checkout (UK VAT registration needed)	The courier, on arrival
Gift allowance	£39 between individuals	None published
Typical carrier handling fee	£8 to £12	AED 25 to AED 50

What to put on the invoice for each

For the UK, the invoice must state the goods value separately from shipping (duty is on goods value alone), carry the seller's UK VAT number for sales up to £135, and show the HS code and origin. For the UAE, state the CIF value clearly and the receiver's full name, mobile number and Emirate; Dubai Customs matches the consignee to a national ID or a company trade licence, and a parcel addressed to a PO box alone is held. A receiver's Emirates ID number on the airway bill speeds clearance for personal imports.

Restricted on these lanes in particular

Both destinations restrict medicines beyond a personal quantity, and the UAE requires a Ministry of Health permit for many medicines that are over-the-counter elsewhere, including some painkillers and sleep aids. The UK requires a UKCA or CE mark on electrical goods sold commercially and bans knives of certain kinds outright. Food into the UAE needs the importer to be registered with the municipality for commercial quantities. The prohibited items page lists what we never carry; for the borderline cases, ask before you book.

Questions we are asked

Can an Indian seller ship a £60 order to a UK customer?

Only if the seller is UK VAT-registered and charges the 20% at checkout, or sells through a marketplace or a DDP arrangement that handles the VAT. Shipping it DAP and letting the carrier collect VAT is not how the £135 rule works for consumer sales.

Does the UAE charge duty on a parcel worth exactly AED 1,000?

No. Dubai's notice exempts consignments of AED 1,000 or less from customs duty. VAT at 5% is still charged.

Are shipping costs counted towards the UK £135 limit?

No. The £135 is the intrinsic value of the goods, excluding transport and insurance. For duty and VAT calculation above the limit, shipping is added back into the taxable value.

Customs figures are those in force on the date above and are the same as on our lane pages; rates change, so confirm against your quote before paying duty.