The two charges
Customs duty is charged on the CIF value: the cost of the goods plus insurance and freight to Saudi Arabia. Most goods attract 5%, some are duty-free, and some categories carry higher rates. VAT of 15% is then charged on the CIF value plus the duty.
Worked example
An importer buys goods worth SAR 8,500, pays SAR 1,400 freight and SAR 100 insurance. The product has a 5% duty rate.
| Line | Calculation | Amount (SAR) |
|---|---|---|
| CIF value | 8,500 + 1,400 + 100 | 10,000 |
| Customs duty (5%) | 10,000 × 5% | 500 |
| VAT base | 10,000 + 500 | 10,500 |
| VAT (15%) | 10,500 × 15% | 1,575 |
| Total duty and VAT | 500 + 1,575 | 2,075 |
What else goes into landed cost
- Destination charges: terminal handling, port storage and delivery order fees
- Customs clearance fees
- Inland delivery to your warehouse
- Any SABER, SFDA or inspection costs
- Current war-risk and emergency surcharges on freight
GCC-origin goods
Goods made in a GCC country and shipped with a valid GCC certificate of origin generally move duty-free within the GCC. Goods made elsewhere and re-exported from a GCC hub such as Jebel Ali may still be charged Saudi duty.
Frequently asked questions
What is the customs duty rate in Saudi Arabia?
Most goods pay 5% of the CIF value, but rates range from 0% to over 15% depending on the HS code. VAT of 15% is charged on CIF plus duty.
Can I recover import VAT?
VAT-registered businesses can usually reclaim import VAT through their VAT return, so keep the customs receipts.
Reviewed by Hammad Basravi, Operations Manager, Freight & Customs · Updated October 2026