Get Answers to All Your Questions About Exports Under VAT in the UAE: FAQs

Will VAT be paid on exports?

Export of goods and services outside the GCC and international transportation are zero rated. They must be reported in tax returns, but no VAT will apply.

Under what conditions are exports taxed?

If an export falls under any of the following conditions, it will be taxed:

• Export of goods to a non-GCC member state
• Export of goods to recipients in a GCC VAT implementing state
• Export of goods requiring installation/assembly/completion outside UAE

Does the VAT treatment of exports differ based on the recipient’s VAT registration status?

Yes, the VAT treatment differs based on the recipient’s VAT registration status.

• If you export goods to a VAT-registered recipient, the export will be taxed at 0%.

• If you export goods to a non-registered recipient, and if the value of the goods supplied by you to the destination state is below the mandatory registration threshold in the destination state, then the supply will be taxed at 5%.

• If you export goods to a non-registered recipient, and if the value of the goods sent by you to the destination state exceeds the mandatory registration threshold in the destination state, then the supply will be treated as domestic supply. In this case, VAT will be applicable according to the VAT laws of the destination state and you will have to register for VAT in the destination state in this case.

Can I recover input tax on exports?

Yes, you can recover input tax on supplies used to make exports since they are taxable supplies. If you are involved in local supply within the UAE, you can recover input tax to reduce your tax liability. Also, if you’re involved only in export of goods, then you can get a refund for the VAT paid on the inputs.

What documents are required to prove that my export is genuine?

In order to prove that you export is genuine, you need all of the following documents:

• Export documents issued by the local Emirate Customs Department regarding goods leaving the state
• Airway bill
• Bill of landing 
• Consignment note 
• Certificate of shipment

The above documents should contain the following information: 

• The name of the supplier 
• The name of the consignor 
• A description of the goods 
• The value of the goods 
• The export destination 
• The mode of transport and route that the export will take