Page 13 - ICAI UAE TAX UPDATE_October 2024

Implementing States or are put into a customs suspension substantiate a zero-rated
regime in accordance with the GCC Common Customs Law export.
within 90 (ninety) days of the date of the supply.
This provides flexibility in
b. The exporter retains any of the following: proving exports, making it
easier to claim zero-rated
1) a customs declaration, and Commercial Evidence that VAT. It reduces the risk of
proves the Export, proving export claims due
to non-availability of some
2) a Shipping Certificate and Official Evidence that proves relevant documents.
the Export, or
Effective from November 15,
3) a customs declaration that proves the suspension 2024
arrangement of customs duties, in case the Goods are put
into customs suspension.

“Official Evidence” means the export certificate issued
by the customs departments in the State or a clearance
certificate issued by these departments or the competent
authorities in the State

“Commercial Evidence” means the document issued by
sea, air or land transport companies and agents, which
proves the transfer and departure of the Goods from the
State to outside the State, and includes any of the following
documents:

1) Air waybill or air manifest.
2) Sea waybill or sea manifest.
3) Land waybill, or land manifest.

“Shipping Certificate” means a certificate issued
by sea, air or land transport companies and agents as
an equivalent of a commercial evidence where it is not
available.

Article 31 – New condition to Clause 1(a)3 has been added A new condition has been
Zero-rating the Export added for the supply of
of Services services to qualify for zero-
Condition 3. The Services are not treated as being performed rating, where the services
in the State or in a Designated Zone under Clauses 3 to 8 of should not be subject to the
Article 30 and Article 31 of the Decree-Law. (Special place of special place of supply rules
as mentioned in Articles 30
supply rules)
and 31 of the VAT Federal
Decree Law No. 8 of 2017
and its amendments.

Zero-rating does not apply
to services where the
special place of supply
rules apply, including
telecommunications and
electronic services

Effective from November 15,
2024
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