Vat Zero Rating for export of services in the UAE & KSA

VAT ZERO-RATING for Export of Services in the UAE & KSA 

Vat Zero Rating for export of services in the UAE & KSA

VAT ZERO-RATING for export of services in the UAE KSA.


Customer has no Place of Residence in the State.


  • Service/ arranging of service is performed outside the State
  • Recipient is outside the UAE when the service is performed
  • Service is not directly related to "movable personal asset"
  • Service is not directly connected to real estate situated in the UAE


  • The supply of service does not fall under special cases for place of supply
  • The benefit of the service is not received by a customer in a member state who does not have the right to fully deduct the input tax
  • Service is not related to any tangible goods or property in the KSA



  • In the July 2019, the rules in have changed on ZR conditions for export of services and became less strict.
  • Many taxpayers in KSA conservatively charge 15% VAT on supply of services to recipients outside KSA (even if ZR conditions are met).


  • In July 2020, the ZR conditions for export of service have changed and became stricter.
  • Interpretation of definitions such as services directly in connection with "Movable Personal Assets" or "Real Estate".
  • Burden of proof for taxpayer to evidence that recipient is outside the UAE when service is performed.

How can Crowe help?

  • Support taxpayers in the UAE and KSA to assess whether the conditions for VAT zero-rating of export of services have been met to ensure correct VAT treatment.
  • Assist taxpayers in obtaining a Clarification or Ruling in case the tax treatment is not clearly specified in the VAT Laws in the UAE or KSA.

Contact Us

Markus Susilo
Markus Susilo
Partner- Payroll and Indirect Tax
Michel Ruitenberg
  Partner DIFC - Indirect Taxes  

Contact us for further assistance