Key VAT Amendments Impacting International Transportation Services in the UAE

• Recent VAT amendments in the UAE affect international transportation services.
• Changes are effective from November 15, 2024, under Cabinet Decision No. 100 of 2024.
• Companies involved in cross-border transportation need to understand these updates.
• International transportation services for passengers and goods are zero-rated, exempt from VAT.
• Domestic transportation within the UAE is zero-rated if part of international services.
• Before the amendment, domestic transportation could be zero-rated if part of an international chain, even with different providers.
• After the amendment, zero-rating applies only if the same supplier provides both international and domestic segments.
• Domestic transportation services will be subject to 5 percent VAT if not provided by the same supplier.
• Providers must reassess service agreements to ensure compliance with updated VAT regulations.

Source: hlbhamt.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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