- 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.
Latest Posts in "United Arab Emirates"
- Briefing document & Podcast: UAE E-Invoicing: VAT Compliance, Timelines, and Requirements
- UAE Mandates E-Invoicing for VAT Businesses: Key Deadlines and Compliance Requirements Announced
- Oxinus Named Among UAE’s First Five Pre-Approved eInvoicing Providers; Launches EsalTech with Dhruva
- The Free Zone Mainland Operating Permit: Opening Mainland Market Access for Dubai’s Free Zone Companies
- Declaration of Tax Group Eligibility and Compliance Summary














