UAE Zero-Rated Supplies

Supplies taxed at 0% in UAE — exports international transport certain food items

What are UAE Zero-Rated Supplies?

UAE zero-rated supplies are taxable supplies charged at 0% VAT — allowing the supplier to recover input VAT — listed in Article 45 of the VAT Executive Regulations.

Overview

Zero-rating covers exports of goods and services outside the GCC VAT implementing states, international transport of passengers and goods, supplies of investment-grade precious metals, the first sale of newly constructed residential buildings within three years, and specific healthcare and education services supplied by licensed providers.

Key Points

Exports of goods and services outside GCC
International passenger and goods transport
Investment-grade precious metals (gold, silver 99%+)
First supply of new residential buildings (within 3 years)
Specific qualifying healthcare and education supplies

In Practice

A UAE healthcare provider charges 0% VAT for qualifying medical services and recovers input VAT on equipment and supplies — materially better than exempt treatment where input VAT would be trapped.

Related terms

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Designated Zone UAE VAT

VAT Compliance

A fenced free zone listed in Cabinet Decision No. 59 of 2017 (such as JAFZA or KIZAD) that is treated as outside the UAE for VAT on goods, subject to customs control and the zone’s conditions.

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Oman VAT Return Filing

VAT Compliance

The periodic declaration of output and input VAT a registered person submits to the OTA through the Tax Portal, quarterly for most taxpayers, with return and payment due within 30 days of the period end.

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Reverse Charge KSA

VAT Compliance

The mechanism under the VAT Implementing Regulations by which a Saudi-registered buyer, not the non-resident supplier, accounts for 15% VAT on imported services and specified cross-border supplies.

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Reverse Charge Oman

VAT Compliance

The mechanism in the Oman VAT Law under which a VAT-registered recipient, rather than a non-resident supplier, accounts for 5% VAT on imported services and goods not taxed at customs.

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