VAT on Imports and Exports in the UAE

By Shihabudeen Pattasseri, FTA-Registered Tax Agent (TAAN 20056925) · Updated 2026-11-03

Cross-border trade is where VAT gets more involved. Imports, exports and the evidence behind them each have specific rules, and getting them right protects both your compliance and your margins.

Importing goods

When you import goods into the UAE, import VAT applies. A VAT-registered importer typically accounts for it through the reverse charge on the VAT return, declaring the output VAT and recovering it as input VAT where the goods relate to taxable supplies — often making it cash-neutral.

Importing services

Services bought from suppliers outside the UAE are also subject to the reverse charge. The registered recipient accounts for the VAT, which is a step businesses often forget.

Exporting goods and services

• Exports of goods outside the GCC implementing states are generally zero-rated
• Exported services to overseas recipients can be zero-rated where the conditions are met
• You must keep the commercial and official evidence of export to support zero-rating

Evidence matters

Zero-rating an export without the required documentation is a common reason for FTA adjustments. Keep customs documents, shipping evidence and contracts linking each zero-rated supply to a genuine export.

Frequently asked questions

Is import VAT recoverable?

Generally yes, where the imported goods relate to your taxable supplies. A registered importer accounts for it via the reverse charge and recovers it in the same return.

Are exports zero-rated?

Exports of goods outside the GCC implementing states are generally zero-rated, as are qualifying exported services, provided you hold the required evidence.

Do I pay VAT on services bought from abroad?

You account for them under the reverse charge, declaring the VAT yourself as the registered recipient.

← All insights