Exporting services outside the UAE? Zero-rating is available for many cross-border services, but the rules are more specific than most businesses assume, and getting the documentation wrong is one of the most common VAT audit findings we see.
Broadly, a service can be zero-rated when the recipient is outside the UAE and does not have a place of residence in the UAE, and the service is not related to UAE real estate or actually performed in the UAE. Each of those conditions needs to be evidenced, not just asserted – contracts, correspondence and proof of the recipient’s location should all support the zero-rating position.
We recommend building a simple checklist into your invoicing process so zero-rating decisions are made consistently and the supporting file is assembled at the time of invoicing, not retrieved months later when the FTA asks for it.
