UAE: New VAT Regulations of Exported Services

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.


July 17, 2020