UAE VAT Taxable and Exempt Supplies

VAT Taxable and Exempt Goods and Services Explained

Taxable supplies include:

Standard rated supplies – 5% VAT unless zero rated, exempt or out of scope.

Zero-rated supplies – not subject to VAT, right to an input tax deduction on the corresponding expenses. Examples:

  • Export of goods and services to outside of GCC
  • International air transport
  • First sale of newly constructed residential property within 3 years
  • Government funded education
  • Preventive and basic healthcare
  • Supply of crude oil or natural gas

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