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UAE VAT Fundamentals/Module 3: Zero-Rated Supplies
5 min

Exports, Transport, and International Services

Detailed rules for zero-rating exports of goods and services, international transport, and related services.

Zero-Rated Exports

Export of Goods

Goods exported outside the GCC implementing states are zero-rated, provided:

  • The goods are transported from the UAE to a destination outside the GCC
  • The exporter maintains evidence of export (customs declarations, bills of lading, transport receipts)

Export of Services

Services supplied to a recipient outside the GCC implementing states are zero-rated, provided they are not caught by the special place of supply rules.

International Transport

International transport of goods and passengers is zero-rated, including:

  • Transport from the UAE to outside the GCC
  • Transport from outside the GCC to the UAE
  • Transport through the UAE (transit)

Related services that are directly connected to international transport are also zero-rated:

  • Freight forwarding
  • Customs clearance
  • Warehousing for transit goods
  • Container handling

Supply of Transport Means

The supply, rental, and repair of qualifying sea, air, and land transport means is zero-rated. Qualifying transport means include:

  • Vessels used for commercial transport of goods or passengers
  • Aircraft used for commercial transport
  • Vehicles used for commercial transport of 10+ passengers

Crude Oil and Refined Products

The supply of crude oil and refined petroleum products at the first point of sale within the UAE is zero-rated. Subsequent sales within the domestic market may be standard-rated.

Conditions for Zero-Rating

All zero-rated supplies require the supplier to maintain proper documentation proving eligibility for the 0% rate. Without evidence, the FTA may reclassify the supply as standard-rated.

Practical UAE example

**Dubai Logistics Company**: A logistics company provides international freight forwarding from Jebel Ali to Rotterdam. The freight forwarding service is zero-rated because it relates to international transport of goods. The company also provides warehousing for goods in transit — this is also zero-rated. However, if the company provides domestic trucking from Dubai to Abu Dhabi, that service is standard-rated at 5%.

Key takeaways

  • Exports of goods and services outside the GCC are zero-rated with documentation.
  • International transport and related services are zero-rated.
  • Supply of qualifying transport means (ships, aircraft) is zero-rated.
  • Crude oil at first point of sale is zero-rated.

Authoritative sources

Federal Decree-Law No. 8 of 2017 on Value Added Tax

United Arab Emirates — Federal Tax Authority · The VAT Law — Articles 1 to 82 (as amended by Federal Decree-Law No. 18 of 2022)

Effective: 1 Jan 2018Verified: 5 Oct 2026View source

Cabinet Decision No. 52 of 2017 on the Executive Regulations of the Federal Decree-Law No. 8 of 2017 on VAT

United Arab Emirates — Cabinet / Federal Tax Authority · Executive Regulations (as amended by Cabinet Decisions No. 46/2020, 24/2021, 88/2021, 99/2022, 100/2024, and 100/2025)

Effective: 1 Jan 2018Verified: 5 Oct 2026View source

FTA — VAT Guides, References & Public Clarifications

UAE Federal Tax Authority · Taxable person guides, tax invoice guides, input tax guides, designated zones, real estate

Effective: 1 Jan 2018Verified: 5 Oct 2026View source
Knowledge check

1. Which of the following is zero-rated under UAE VAT?

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This lesson is general educational content, not individualized tax or legal advice. Always consult a qualified professional for your specific situation.