GTL Summary:

Federal Decree-Law No. 100 of 2024 introduces targeted amendments to the UAE VAT legislation, specifically clarifying the conditions for zero-rating certain means of transport under Article 34. The Decree-Law expands the scope to explicitly include the 'import' of qualifying means of transport, in addition to their supply. Furthermore, it refines the criteria for aircraft, replacing the term 'commercial purposes' with the more specific 'commercial transport of passengers or goods'. These changes, effective from 15 November 2024, aim to provide greater clarity for businesses involved in the transport sector.

Document Type: ERS - Executive Regulations
Law: VAT (FDL No 8 of 2017, as amended)
Decision Number: 52-article-34
Year: 2017
Country: 🇦🇪 UAE
Official Name: Article 34 - Applying the Zero Rate to Certain Means of Transport
Last updated at: 2025-12-26 14:13:51 UTC

Part 6 - Zero-Rated Supplies

Article 34 - Applying the Zero Rate to Certain Means of Transport ^[19]

The supply [and import] ^[G35]of the following means of transport shall be subject to the zero rate:

An aircraft which is designed or adapted to be used for [commercial transport of passengers or goods] ^[G36]and not designed or adapted for recreation, pleasure or sports;
A ship, boat or floating structure which is designed or adapted for use for commercial purposes and not designed or adapted for recreation, pleasure or sports.
A bus or train which is designed or adapted to be used for public transport of (10) or more passengers.

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