The UAE VAT Law distinguishes between: Understanding the VAT rules for each is essential to avoid FTA penalties. In 2025, VAT audits focus heavily on free zone transactions. What Is
The tax point rules are outlined in accordance with Art. 23 of the Agreement, as set out in the main chapter, notes with additional clarification below in relation to goods
The Agreement requires tax UAE invoices to be issued in relation to the supply of taxable goods or services, including a deemed supply, and in cases where there is either
Deemed supplies can be goods and services and are subject to VAT UAE. The VAT Law in Art. 11 considers a supply to be a deemed supply and subject to
In commercial transactions, a person may incur expenses and then recover these expenses from another party. The VAT UAE treatment of the amount recovered depends on whether the recovery is
Residential Real Estate The sale or lease of residential buildings is exempt in Art. 43 of the Regulations as per the dispositions of Art. 46 (2) of the VAT Law. A residential building
The supply of local passenger transport services is exempt when the service takes place within the UAE by way of a qualifying vehicle operating by land, air or sea, for
The VAT zero-rated treatment of new residential buildings is established in Arts. 45(9). The VAT treatment of these categories falls amongst the categories left at the discretion of the MEMBER STATES. [10) and
Metal bought as an investment is amongst the categories for mandatory zero-rated treatment in the Agreement. Metal bought other than as an investment will always be standard rated. Art. 36
The transport of goods and passengers outside the UAE is one of the mandatory categories subject to VAT zero rating as per the dispositions of the Agreement. The international transport
