FTA’s latest VAT Public Clarification on Zero-rating of export of services is an answer for a widespread misconception on the Zero-rating VAT treatment on services being classified as “export” by the taxpayer. Under this clarification, the FTA clarifies once again what we have emphasized in our latest Webinar on the place of supply role in accordance with the UAE’s VAT Law and Regulations.
The issue arises when businesses are performing services in the State to a customer that is claimed to be “outside” the State and accordingly charged as an export of service or Zero-rated supply. The FTA has established the roles where the customer/service recipient is not considered as an export-based on a particular place of establishment criteria or presence in the UAE.
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