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VAT on activities outside the UAE

QuickTax Support avatar
Written by QuickTax Support
Updated over 5 months ago

If a company's activities take place entirely outside the UAE, VAT is not charged in the UAE on exported goods and services.

However, if you have paid VAT to your suppliers within the UAE, it can be reclaimed from the budget.

In some free zones, there are exemptions that may allow companies to avoid VAT registration altogether, but proper justification is required.

Despite the fact that exported goods and services are not subject to VAT, these transactions must still be reported as zero-rated on VAT returns.

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