- Amendments to VAT Regulations: The UAE’s Federal Tax Authority announced amendments to the Executive Regulation of Federal Decree-Law No. (8) of 2017 on VAT, effective from 15 November 2024, with key changes focusing on zero-rated goods and services.
- Zero-Rated Goods and Services: The 0% VAT rate applies to specific goods and services, allowing businesses to claim input tax on related purchases, thus maintaining cash flow while encouraging sectors like healthcare, education, and exports.
- Documentation for Exports: The amendments expand acceptable documentation for claiming 0% VAT on exports, including customs declarations and shipping certificates, while defining terms like “Official Evidence” and “Commercial Evidence.”
- Specific Sectors Covered: Zero-rated VAT applies to international transport, healthcare, education, precious metals, residential buildings, charity-related buildings, and telecommunication services provided internationally, promoting growth in these critical areas.
- Compliance and Documentation: Businesses must ensure compliance with eligibility criteria and maintain proper documentation to benefit from the favorable 0% VAT regime, enhancing their operational efficiency and reducing tax burdens.
Source Fintedu
