3. Oil and Gas
List of Supplies under 5% VAT rate
- Products of gas and oil (including petrol at the pump)
List of Supplies under 0% VAT rate
- Natural gas and crude oil
4. Transportation Sector
List of Supplies under 0% VAT rate
- International transportation of passengers and goods (including intra-GCC flights)
- Supply of means of transport (sea, land, and air) for commercial purposes of goods and passengers (more than ten people) transportation
- Supply of services and goods related to those particular means of transport and transportation of passengers and goods
List of Supplies Exempt from VAT
- Transportation of domestic passengers (including the flights within the UAE)
Know about the basic requirements of VAT registration in the UAE.
5. Real Estate Sector
List of Services under 5% VAT rate
- Sale and rent of commercial properties (not used for the residential purpose)
- Serviced accommodations like motels, hotels, etc.,
- Personal home owned by a UAE citizen (recoverable tax)
List of Services under 0% VAT rate
- First sale/rent of residential building after the construction or conversion finishes
- The first sale of a building used for charitable causes
List of Services Exempt from VAT
- Sale or rent of residential building following the first supply
- Bare land
6. Financial Services Sector
List of Services under 5% VAT rate
- Products having an explicit fee, commission, discount, rebate, or similar element
List of Services Exempt from VAT
- Products based on margin (products without an explicit fee, rebate, commission, discount, or similar element)
- Interest on various forms of lending (like loans, credit, financing lease, and cards)
- Issue, allotment, or transfer of equity or debt security
7. Insurance and reinsurance Service Sector
List of Services under 5% VAT rate
- Insurance and reinsurance (including motor, property, and health)
List of Services Exempt from VAT
- Life insurance and reinsurance
8. Investment (Gold, Silver, and Platinum)
List of Supplies under 5% VAT rate
- Less than 99% pure
- Jewelry
List of Supplies under 0% VAT rate
- 99% or purer and tradable in global markets
9. Telecommunications and other electronic Services
List of Services under 5% VAT rate
- Wireless and wired telecommunications and electronic Services
10. Food and Beverages
List of Supplies under 5% VAT rate
11. Government Activities
List of Services with VAT considered outside the VAT framework
- Sovereign activities that are not in competition with the private sector undertaken by the designated government entities
List of Services under the VAT rates dependent on service/goods ignoring the provider
- Activities that are not considered sovereign or in competition with the private sector
12. Non-profit Organizations
List of Services considered outside the VAT framework
- Activities of international organizations, diplomatic bodies, foreign governments, and missions acting as such (if not in business in the UAE)
- Charitable activities carried out by societies and associations of public welfare listed by the Cabinet decision
- Exercises and other non-profit organizations (not mentioned in the Cabinet decision) which are not business activities
List of Services whose VAT rate depends on service/good ignoring the provider
- Business activities are undertaken by the organizations mentioned above
13. Free Zones
List of Services and Supplies considered outside the VAT framework
- Supplies of goods between the business in designated zones
List of Services and Supplies whose VAT rate depends on services ignoring the location
- Supplies of services and interests in the non-designated zones
- Supplies of services between the businesses in designated zones
- Supplies of services and goods from the mainland to the designated zones or vice versa
14. Others
List of Supplies and Services under 5% VAT rate
- Any supplies of goods and services (includes any item that is sold in the UAE or service provided
- Second-hand goods (used vehicles sold by retailers), collector’s items, and antiques (5% of the profit margin)
List of Supplies and Services under 0% VAT rate
- Export of services and goods to outside the GCC Implementing States
List of Supplies and Services considered outside the VAT framework
- Activities carried out by the employees in the course of their employment (including salaries)
- Supplies between members of a single tax group
Are these VAT regulations confusing you? Do you want to outsource or avail of VAT services like registration, consultancy services, VAT returns filing services, VAT Implementation services for your UAE-based establishment? Jaxa Chartered Accountants is your one-stop solution for your company’s Accounting, Taxation, Payroll, and other financial and legal needs. To have a word with our experts, contact us– we’d be happy to help.
Read more about VAT in Dubai
VAT Services in Dubai
VAT Accounting Services in Dubai
VAT Registration Services in Dubai
How to Register your Company for VAT?
How Can You Prepare For VAT In UAE?
Basic Requirements of VAT Registration in UAE
VAT Refund Policies
VAT Implementation in Dubai
VAT Deregistration Services in Dubai
VAT Return Filing in Dubai
VAT Consultancy Services in Dubai
VAT Rates for Different Industries in the UAE
All you need to know about VAT in UAE
VAT Penalties and Its Legal Actions