Zero-rating Of Export Of Services

The FTA (Federal Tax Authority) has recently issued a Public Clarification under UAE VAT law explaining the taxability of export of services. We have summarized below the gist of the key UAE VAT positions discussed in this clarification below:
 
As per Article 31(1)(a)(1) of the executive regulation, a supply may be zero-rated wherein two conditions are satisfied –

1. Service is supplied to a person who does not have a place of residence in an Implementing state;
2. Recipient of service should be outside UAE at the time service is performed;

The above conditions have been explained in detail in the Public clarification.

Condition 1 - Service is supplied to a person who does not have a place of residence in an Implementing state.