UAE VAT online shopping

Online shopping not VAT exempt

The FTA has clarified that online purchases are not VAT exempt and 5% VAT rate is applicable on all purchases made through online shopping portals just like any other purchase made through traditional outlets if the products purchased online are received within the UAE. Continue reading →

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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