List of Zero-rated VAT goods and services in UAE

Zero-rated supplies in UAE VAT refers to the taxable supply on which VAT is charged at a zero rate. Here, tax is charged at zero rate either based on the nature of supply, regardless of the goods or services supplied or the specified goods or services which are listed under a zero-rated list.

Generally, all exports of goods and services in UAE will be considered as zero-rated supplies. However, to qualify a supply as zero-rated, there are a set of conditions laid out in UAE executive regulations that need to be met for charging zero-rate tax

The following is the list of zero-rated VAT goods and services in the UAE. However, as mentioned earlier, to consider the following supplies as zero-rated supplies, the conditions mentioned in UAE executive regulations need to be met.

1. All direct and indirect exports of goods and services outside the implementing States

2. Exported Telecommunications Services

3. International transportation services for Passengers and Goods including all other transportation-related services

4. Supply or import of investment precious metals such as gold, silver and platinum where the metal purity is 99 percent or more and the metal is in a form which is tradable in global bullion markets

5. Residential buildings intended and designed for human occupation which includes Residential accommodation for students or school pupils, armed forces and police, orphanages, nursing homes, and rest homes

6. Buildings specifically designed to be used by charities

7. Education services

8. Healthcare services

Written By CA Adarsh Janardhanan ACA

Expandx Tax Consultants