The UAE and Saudi Arabia have a strong trade partnership, with billions of dirhams worth of goods and services exchanged every year. In fact, Saudi Arabia is one of the UAE’s top trading partners, with trade between the two countries reaching over AED 136 billion in recent years. With such a high volume of trade, understanding VAT on Exports to Saudi Arabia from UAE is crucial for businesses to ensure smooth operations and compliance.
If you’re exporting goods or services to Saudi Arabia, you may need to charge VAT, or, in some cases, you might be eligible for zero-rated VAT (0%), which means you don’t have to charge tax. However, there are specific conditions you must meet to qualify. Understanding these rules can help you avoid mistakes, penalties, or delays in shipments.
Let us make it easier for you, we’ll break down everything you need to know about VAT on Exports to Saudi Arabia from UAE, including when VAT applies, how to qualify for zero-rated VAT, required documents, and how businesses can stay compliant.