Dubai Customs, in cooperation with the Federal Tax Authority (FTA), launched the Trader Export Report service. Image Credit: Shutterstock

Dubai: Dubai Customs, in cooperation with the Federal Tax Authority (FTA), launched the Trader Export Report service. The new service will help clearance and shipping agents achieve Zero Rating of supply of goods exported within 90 days of export date, regardless of the import date.

The service was launched virtually in the presence of Ahmed Mahboob Muabih, Director General of Dubai Customs and Khalid Ali Al Bustani, Director General, Federal Tax Authority (FTA), along with Dubai Customs’ executive directors and heads of customs departments and centers.

Traders have to meet all the Zero Rating requirements including having an exit certificate and commercial documents that prove exportation process, and exporting the shipment within the specified time frame. This service applies only to imported goods that will be exported later and not to goods possessed locally.

What is Zero rating in VAT
Zero-rated supplies in UAE VAT refers to the taxable supply on which VAT is charged at zero rate. Here, tax is charged at zero-rate either based on the nature of supply, regardless of the goods or services supplied or the specified goods or services which are listed under zero-rated list.
Zero rated VAT and exempted VAT are different from each other. Zero rated VAT in UAE means you must charge VAT at 0 per cent to your customers. Exempt VAT means you must not charge VAT.
A zero-rated VAT is a supply of goods and services that are taxable but VAT is imposed at zero per cent. VAT-registered businesses that produce zero-rated supplies/services have the right to claim their input tax deductions that they have incurred in the course of producing these taxable supplies.

“The Trader Export Report service is very promising, and is a good example of fruitful cooperation between local departments and federal authorities to enhance economic development and trade facilitation following the leadership’s wise vision. The creative platform will help raise compliance and abidance. I heartily thank Dubai Customs’ team for their dedication and honest efforts in making this creative service a reality,” said Al Bustani.

The new service will be available on Dubai Trade Portal, and it will apply to certain types of declarations including Import to Local from ROW, Import to Local from GCC (Statistical Import), Import for Re Export to Local from ROW, Import to CW from ROW, Transit (ROW to ROW) and Cargo Transfer from CTO to CH (Different Locations).

“The (Trader Export Report) service is meant to provide best trade and customs facilities to traders and businesses to help them increase mutual trade between Dubai and the rest of the world. This will help in fulfilment of national plans and projects and support Dubai 5-year plan of increasing Dubai external trade to 2 trillion dirhams. Dubai non-oil external trade grew 10% in Q1, 2021 to Dh354.4b compared to Dh323b in Q1, 2020. This includes Dh150m for exports and re-exports," said Musabih.