March 25 2020

UAE – VAT administrative exceptions guide amended

Source: IBFD Tax Research Platform News

On 21 March 2020, the UAE Federal Tax Authority (FTA) updated the VAT administrative exceptions Guide by adding an exception related to "Evidence to prove export of goods".

In accordance with the provisions of article 30 of Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax (The Executive Regulations), in order to prove the export of goods, the taxpayer must provide the following documents:

  • "official evidence" meaning export documents issued by the local Emirate Customs Department in respect of goods leaving the state; and
  • "commercial evidence" which must include an airway bill, a bill of lading, a consignment note, or a certificate of shipment.

Furthermore, article 30 (6) of the Executive Regulations provides that the FTA may specify alternative forms of evidence according to the nature of the export or the nature of the goods being exported.

The Guide provides that the taxpayer may request the FTA to allow the use of an alternative form of evidence to prove the export of goods. In its request, the taxpayer must provide the actual reasons or circumstances for seeking an approval to allow the use of an alternative form of evidence.