Federal Tax Authority of the UAE updated the Executive Regulation of the Federal Decree-Law №8 on Value Added Tax.
Cabinet Decision №46 of 4 June 2020 includes the amendment of Article 31 “Zero-rating the Export of Services”.
Therefore, the export of services is now zero-rated, among other things, when the following two conditions are met:
1. The Services are supplied to a Recipient of Services, who:
✅ does not have a Place of Residence in an Implementing State and
✅ is outside the State at the time the Services are performed
2. The Services are not supplied directly in connection with:
✅ real estate situated in the State or
✅ any improvement to the real estate or
✅ moveable personal assets located in the State at the time the Services are performed.
The amendment is aimed to clarify “outside the State” status of a person
✔ who stays in the State less than a month
✔ whose presence is not effectively connected with the supply of services.