In the UAE, exports of goods can be zero-rated for VAT purposes. This means that although these transactions are taxable, the VAT rate applied is 0%, allowing businesses to claim input tax recovery without charging VAT to the customer. However, to benefit from this, businesses must meet specific documentary requirements under Article 30 of the Executive Regulations. With recent amendments effective from the Federal Tax Authority (FTA) has the acceptable documentation has been updated and expanded.

What documents are needed for zero rating VAT on exports?

The following are acceptable documentation

1. Customs declaration + Commercial Evidence proving goods were exported
2. Shipping Certificate + Official Evidence proving the export
3. If goods are placed under a customs suspension regime (per GCC Customs Law) the customs declaration showing such status.

What Counts as “Commercial Evidence”?

Documents from transport agents proving transport of goods from UAE to a place outside UAE, such as:

1. Air Waybill or air manifest
2. Sea Waybill or sea manifest
3. Land Waybill or land manifest

Note: These must be from registered logistics companies or transport agents.

What Counts as “Shipping Certificate”?

Documents from transport agents proving transport of goods from UAE to a place outside UAE. This can be used instead of commercial evidence when such evidence is not available.

What Counts as “Official Evidence”?

Any of the following qualify:

1. Exit Certificate from the local customs authority confirming departure from the UAE.
2. Clearance Certificate from local emirate customs or competent authority confirming departure.
3. Any document or Clearance Certificate by the competent authority from the destination country confirming entry, with:

1. Official stamp or seal.
2. Document in Arabic or English, or with certified translation.

Critical Points to Ensure Compliance

1. Evidence must clearly include required export details

2. If documents are incomplete, illegible, or missing details, the FTA may reject the zero-rating claim.

3. The right combination matters.

The amended regulations offers more flexibility in the type of documents that can support a zero-rated export, but also places greater responsibility on businesses to maintain and present complete, clear, and compliant documentation.

Failure to do so could result in VAT reassessments, penalties, and loss of input tax recovery.

Disclaimer: This blog is intended for educational and informational purposes only and does not constitute professional or legal advice. For specific guidance related to your business, please consult a qualified tax advisor or contact our team directly.