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Document Type: BL - Bylaws
Law: VAT (FDL No 8 of 2017)
Decision Number: 52-article-35
Year: 2017
Country: đŸ‡ĻđŸ‡Ē UAE
Official Name: Article 35 - Applying the Zero Rate to Goods and Services Related to the Supply of Means of Transport

Cabinet Decision No. 52 of 2017

Cabinet Resolution No. (52) of 2017 - bookmarkSection35

Part 6 - Zero-Rated Supplies

Article 35 - Applying the Zero Rate to Goods and Services Related to the Supply of Means of Transport[20]

Goods and services related to the supply of means of transport set forth in Article 34 of this Resolution shall be subject to the zero rate:

  1. Goods, except for fuel or other oil or gas products, that are supplied [or imported] [G37]in the course of operating, repairing, maintaining or converting means of transport in any of the following cases:

    1. Include the goods into, affix, attach to or form part of such means of transport.

    2. The use of goods directly as consumable goods in the operation, repair, maintenance, or conversion process, which become unusable or worthless as a result of such use.

  2. The following services which are supplied directly in connection with means of transport referred to in Article 34 of this Resolution for the purposes of operating, repairing, maintaining or converting such means of transport:

    1. [Services provided for the repair of the means of transport when repairs are performed on board the means of transport

    2. Maintenance services provided for the means of transport when repairs are performed on board the means of transport, including inspections, testing of the means of transport and its parts or equipment, cleaning, repainting, and other similar services.

    3. Conversion services provided for the means of transport, provided that, upon completion, the means of transport continues to meet the conditions specified in Article 34 of this Resolution.] [G38]

  3. Services which are supplied directly in connection with parts and equipment of means of transport referred to in Article 34 of this Resolution for the purpose of repairing and maintaining such parts and equipment, provided that any of the following conditions is met:

    1. The services are performed on board the means of transport.

    2. The part is removed for repair or maintenance, and is subsequently reinstalled in the same means of transport.

    3. The part is removed for repair or maintenance, and is subsequently held in stock for the future use as a spare part in the same means of transport or another means of transport.

    4. The part cannot be repaired and is replaced by a similar part.

Footnotes

[20]Article amended as per Cabinet Decision No. 100 of 2024.

GTL Notes

[G37]Inserted by Federal Decree-Law No. 100 of 2024 effective from 15 November 2024

[G38]Inserted by Federal Decree-Law No. 100 of 2024 effective from 15 November 2024