Exports and Imports under VAT in UAE

VAT

So many different products get exported by UAE to different parts of the world. It is gaining much success because of that as well because it is becoming a huge exporting state.

So many goods are exported as well as imported from and to UAE respectively.

Exports: electronics, precious metals and stones

Imports: gold, diamonds, jewelry and cars

What actually export goods are?

If some sort of goods or services is supplied to someone who is present outside the presumes of UAE, it would be referred to as export goods.

Do we need to pay tax on the exported goods?

People do consider tax as a taxable supply but a tax of zero percent is applicable to the exports in UAE.

Here are some of the conditions in which exports are treated;

  • Exporting goods to those recipients who are not registered in a VAT implementing state
  • Exporting goods to those recipients who are registered in a VAT implementing state
  • Exporting of goods to a state that doesn’t come in the range of GCC VAT
  • Exporting goods which require installation outside the range of the state

Can we recover input tax particularly on the exports?

Yes, we can recover the input ta on the supplies because the reports come under the range of taxable supplies. This is the major reason why we can recover the input tax on exports.

Do we need to maintain the record of the exports?

Just like the record of everything else in business is important, the record of the exports in business is important as well. the people need to maintain their record of exports for almost 5 years

If you have been issued an invoice today in the year of 2018, you must keep its record until the year of 2023.

What actually export goods are?

Receiving goods and services from outside of UAE are referred to as imported goods.

Do we need to pay tax on the exported goods?

According to the VAT in UAE, the imported goods are taxable. If someone has registered for VAT he will be subjected to the tax on all the goods he imports from other countries or places of the world.

Situations on imports;

  • A person who has registered for VAT
  • A person who has NOT registered for VAT
  • Goods imported to UAE
  • Goods imported via UAE

Can we recover input tax particularly on the imports?

Yes, the input tax on the imports can be recovered

Vat rate on imports?

5 percent VAT rate is applied to all the goods that are imported from other countries of the world to UAE.

EXCEPTION:

The VAT rate on imports of precious metal is 0 percent. So, if someone imports them, he will not be subjected to any sort of VAT.

Do we need to maintain the record of the exports?

yes, the records of imports are to be maintained for almost 5 years. if the invoice has been issued today, the records must be maintained 5 years right from the date.

For more inquiries, you can take the help of VAT agents in UAE.

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