The UAE Federal Tax Authority (FTA) has issued Public Clarification VATP019 to clarify the conditions for zero-rating of the export of services following recent amendments to the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax by Cabinet Decision No. 46 of 2020. This includes the following as summarized in the publica clarification:
In accordance with Article 31(1)(a)(1) of the Executive Regulation, a supply may only be zero-rated where the recipient of services does not have a place of residence in an Implementing State and is outside the UAE at the time the services are performed.
In determining whether these conditions are met, the supplier must consider all available facts in order to identify the residency status and the location of the recipient. Where the recipient has multiple establishments, the supplier must also determine which establishment of the recipient is most closely related to the supply.
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