VAT for indirect export

This case study addresses several major issues related to the application of a 0% VAT rate to indirect exports in the UAE. First, it considers the resale of goods that were already sold for subsequent export within the UAE. Second, it explores the interplay between the timing of customs clearance and resale. Third, it examines VAT concequenses for cases where goods have been transferred to a Designated Zone prior to their sale and resale. Finally, it discusses registration issues for foreign customers in cases of the aforementioned resale. Given the scarcity of clarifications from the FTA, we are attempting to bridge the gap with insights provided by the Omani, Saudi, and Bahraini tax authorities regarding similar regulations.

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Maria Nikonova
Head of PGP Tax Consultancy in the UAE, PhD in Law

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