For VAT purposes, the treatment of exports of goods, i.e. goods being shipped from the UAE to a person residing outside the UAE, depends on whether the consignee is resident in a GCC VAT country. In this article, let’s take a look at the treatment of exporting goods from the UAE to non-GCC VAT implementing countries.
Non-GCC VAT Countries
Non-GCC VAT implementation countries can be countries within the GCC region that do not implement VAT, or they can be countries outside the GCC region. Within the GCC region, only the United Arab Emirates and the Kingdom of Saudi Arabia currently implement VAT. Therefore, this article will discuss the UAE’s exports of goods to GCC countries as well as countries outside the GCC region (excluding Saudi Arabia).
When goods are exported from the UAE to non-GCC VAT countries, there are two types of exports:
Direct export refers to an export where the supplier is responsible for arranging the transportation of the goods or appointing its agent.
Indirect exports are exports where the consignee is responsible for arranging to collect the goods from the UAE supplier and exports the goods themselves or appoints an agent.
Direct export to non-GCC VAT countries
VAT is zero-rated on direct exports to non-GCC countries, provided the following conditions are met:
Goods must be physically exported or detained at customs within 90 days from the date of supply.
Exporters must retain official and commercial evidence of export or customs suspension.
Indirect exports to non-GCC VAT countries
Indirect VAT exports to non-GCC countries are zero-rated supplies as long as the following conditions are met:
Goods may be physically exported or tax suspended within 90 days of the date of supply, subject to arrangements agreed between the supplier and the recipient prior to the date of supply.
The recipient must obtain official and commercial evidence of the export or customs suspension and provide a copy to the supplier.
You must not use or modify the goods between supply and export or customs stop goods, unless required to prepare the goods for export or customs stop.
Cargo leaving the UAE must not be in the possession of passengers or crew of an aircraft or ship.
The recipient must not have a business or fixed place of business in the UAE, be resident in the UAE or have a tax registration number in the UAE.
You can also register for VAT Registration on our website: