Whether it is Value Added Tax (VAT) or Corporate Tax, the logistic service industry needs to pay special attention to the scope of tax concessions.
As per global practices, international transportation is generally zero-rated under the UAE VAT laws.
An interesting ambiguity exists for international transportation originating from a place outside the UAE. If the place of supply is outside UAE, then such transportation services should be outside the scope of UAE’s VAT.
- Zero-rated?
- International jurisprudence
- Penalties and tax arrears
Source: Gulf News
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