Export of Service – Impact on Tax Treatment by Changing OR to AND

The major change noticed in the new document is related to Article 31 – Zero-rating the export of services. Article 31 gives the guidelines on when a supply of service can be considered as zero-rated as per UAE VAT Law. One of the cases where a service will become zero-rated under UAE VAT Law is that, the Services are supplied to a non-resident (who does not have a Place of Residence) in the UAE and who is outside the State at the time the Services are performed. So, it is to be understood that the tax treatment may change if the recipient of the service is inside UAE or outside UAE.


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