By Dennis Quintenz, Founder of EmiraBooks · Quincom Ecommerce - FZCO
Zero-rated VAT supplies in the UAE
Zero-rated supplies still sit inside the VAT system at 0%, which is different from out-of-scope. Exports of goods are a common founder case, but evidence rules are strict. EmiraBooks records the rate you select; FTA proof (customs, contracts) stays with you.
Steps
- Confirm the supply qualifies as zero-rated under current FTA categories.
- Collect export or other supporting documents before you invoice.
- Mark the invoice line as 0% with a clear narrative.
- Keep the evidence pack with the invoice for the retention period.
- Report zero-rated boxes correctly on the VAT201.
0% vs out-of-scope (plain language)
| Label | In VAT system? | Typical founder note |
|---|---|---|
| Standard rated | Yes at 5% | Most local services/goods |
| Zero-rated | Yes at 0% | Often exports with evidence |
| Out of scope | No | Outside VAT law reach |
| Exempt | Special rules | Advisor territory |
Do not guess
Mis-labelling 5% as 0% understates output tax. Read FTA guides and keep customs files when you claim export zero-rating.
Sources
Last checked: 2026-10-11
FAQ
- Is free zone automatically zero-rated?
- No. See designated zone and QFZP guides separately.
- Can I reclaim input on zero-rated sales?
- Often yes under recovery rules, subject to conditions. Advisor check.
- EmiraBooks decides the rate?
- No. You choose the rate on the line.
- Tax advice?
- No.
Related: Designated zone VAT rules for UAE founders · UAE tax invoice requirements for founders · VAT201 step by step for UAE founders · Qualifying Free Zone Person (QFZP) basics · All guides · Tax tools
Not tax advice. Confirm figures and deadlines on tax.gov.ae and mof.gov.ae, or with your advisor.
Not tax advice. Check figures and deadlines yourself or with your advisor. Facts on this page last checked: 2026-10-11.