How to Sell Used Phones Online in the UAE in 2026: VAT Margin Scheme, noon Renewed Rules, TDRA Approval and Fees

To sell used phones online in the UAE you need a license that covers electronics trading, proof of where each phone came from, and, if you are VAT-registered, a decision on whether to use the FTA's profit margin scheme. Under that scheme a reseller accounts for VAT on the margin instead of the full price, as long as it can show the phone was previously subject to VAT. On noon you also need to qualify for its Renewed or Refurbished programme. This page is current as of October 2026.

How does VAT work when you resell used phones?

The FTA's guide VATGPM1 (January 2026) describes an optional scheme where a registered reseller calculates VAT on the profit margin instead of the full value of eligible goods. VAT is the margin multiplied by 5/105. The guide gives a worked example of a purchase at AED 100,000 and a sale at AED 200,000: the margin is AED 100,000 and VAT is AED 4,761.90.

Applied to a phone, illustrative only: you buy a used phone from a private seller for AED 1,200 and sell it for AED 1,800. The margin is AED 600. VAT under the scheme is 600 x 5/105, which is AED 28.57. Without the scheme, VAT on a AED 1,800 sale would be higher, because it is charged on the full price.

The guide includes a close example: a company buys second-hand mobile phones from non-registrants and sells them on under the scheme.

Conditions that matter for phone sellers, all from the same guide:

• Proof. The onus is on the reseller to obtain and keep evidence that the goods were previously subject to VAT, such as the tax invoice from the original purchase. Without it, VAT applies on the full value.
• Imports. The scheme does not apply to goods you import yourself, unless the import VAT was not recoverable under Article 53 of the VAT Executive Regulation.
• Invoices. A taxable person cannot elect the scheme for a supply if its tax invoice showed VAT on that supply.
• Goods bought before 1 January 2018, or never subject to VAT, are not eligible.

VAT registration itself is mandatory above AED 375,000 of taxable supplies and imports in 12 months and voluntary above AED 187,500. See UAE VAT registration for sellers.

Which license do you need?

You need a UAE trade license with an activity that covers trading in phones or electronics, and a second-hand or refurbishment activity if you repair devices. Marketplaces compare the license with the category. The choice between mainland and free zone is in what license you need to sell online in the UAE. Ask your authority to confirm in writing that second-hand goods are covered by the activity on the license.

What are noon's rules for used phones?

noon sorts used devices into Renewed and Refurbished, and the difference decides the warranty and the fee.

Source for the table:. noon says listing a refurbished device as Renewed may result in penalties or account suspension.

To join, noon requires a legally registered business entity with at least 12 months of operating history, plus stock invoices, supplier and sourcing details and your trade license; noon says submission is not a guarantee of approval. noon says businesses operating for less than 12 months may not qualify, so build history with other stock first.

For fulfilled-by-noon orders, noon's UAE FBN fee page for this programme lists a referral fee of 10% of the sale price for Renewed and Refurbished mobiles and tablets, and 5% for unopened or certified pre-owned ones, excluding VAT; fulfilment fees are charged on top. The wider FBN fee structure is in noon FBN fees.

What about Amazon.ae and used phones?

Amazon.ae lists Mobile Phones at a 5% referral fee, with a minimum of AED 1, before VAT, as of October 2026. Electronics Accessories are 15% on the portion of the price up to AED 250 and 8% on any portion above. We did not find a published Amazon.ae policy page for used or renewed phones, so open the category in Seller Central and read the condition rules and approval requirements there. See Amazon.ae category approval.

Illustrative example: a phone sold at AED 1,800 pays AED 90 at 5%, before fulfilment and advertising.

Do phones need TDRA approval?

TDRA type approval applies to telecommunications equipment sold in the UAE. TDRA's published fees are AED 500 for review and AED 200 for the certificate; the service page does not state how long a certificate stays valid. TDRA does not say on that page how it treats resold handsets of an already-approved model, so ask TDRA or your supplier whether a model you plan to resell is approved before you buy, especially for stock bought outside the UAE. The full process is in TDRA type approval for sellers and the wider electronics rules in selling electronics online in the UAE.

What goes wrong with used phone listings?

• Wrong grade. Calling a repaired phone Renewed risks a penalty or suspension on noon.
• No sourcing proof. Without invoices you cannot join noon's programme, and you cannot use the VAT margin scheme.
• Locked or blacklisted devices. Check each IMEI before you buy; noon says it may prefer sellers experienced in IMEI and serial tracking.
• Battery below 85% sold as Renewed. It fails noon's standard.
• Stock with no warranty path. noon requires a 12-month seller warranty on Renewed and 6 months on Refurbished, so arrange repair capacity before you list.

FAQ

Can I sell used phones on noon? Yes, through its Renewed or Refurbished programme. You need a registered business with at least 12 months of operating history, sourcing documents and a trade license, and noon can decline an application. Renewed devices carry a 12-month seller warranty and need battery health of 85% or more.

Do I charge 5% VAT on a used phone? If you are VAT-registered, you charge VAT on the sale. Under the FTA's profit margin scheme, the VAT is calculated on the margin using the 5/105 fraction, provided the conditions in the guide are met. If you do not use the scheme, VAT applies on the full price.

Can I use the margin scheme on imported used phones? Generally no. The FTA guide says the scheme does not apply to goods the reseller imported, unless the import VAT was not recoverable under Article 53 of the VAT Executive Regulation. Those sellers recover import VAT under the normal rules and charge VAT on the full value. Ask a registered tax agent about your case.

What is the difference between Renewed and Refurbished? On noon, Renewed means lightly used or open-box with original OEM parts and battery health of 85% or more. Refurbished means repaired with OEM-grade parts and a new battery. Renewed carries a 12-month warranty and Refurbished 6 months.

How much does Amazon.ae charge on mobile phones? Amazon.ae publishes a 5% referral fee for Mobile Phones, with a AED 1 minimum, before VAT, as of October 2026. Fulfilment, storage and advertising are charged separately. We did not find a separate published fee for used phones, so check Seller Central.

Do I need TDRA approval to resell phones? TDRA type approval covers telecom equipment. TDRA publishes AED 500 for review and AED 200 for the certificate. Ask TDRA or your supplier whether your model is approved before buying stock, especially stock from outside the UAE.

What to do next

Keep a purchase invoice or proof of ownership for every handset, confirm your license activity covers second-hand goods, and ask a registered tax agent whether the margin scheme suits your stock. When you are ready to list, Blooprint, an Amazon SPN verified partner and Amazon Ads Advanced Partner, can run your noon account management and Amazon.ae account management.