VAT On Services Provided Outside UAE

Posted by Shuraa Tax
12
Jul 7, 2025
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Since VAT (Value Added Tax) was introduced in the UAE in 2018, most businesses have been charging a standard 5% on goods and services sold within the country. But what happens when your business provides services to clients who are outside the UAE? Do you still need to charge VAT?

The answer isn’t always straightforward. It depends on something called the “place of supply”, a key rule that helps determine whether your service is taxed in the UAE or not. In many cases, if you’re dealing with customers located outside the UAE, your services might be zero-rated (charged at 0% VAT) or completely outside the VAT scope, meaning no VAT applies.

That’s why understanding how VAT on services provided outside UAE works is really important for staying compliant and avoiding unnecessary taxes or fines.

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