Yes, in the United Arab Emirates the export of services is considered to be Zero Rated, which means that they are still subject to taxation but at a rate of 0%. Consequently, when determining your VAT registration threshold, they are included in the calculation since they are still considered to be taxable supplies.
Even if a mainland company generates 100% of its revenue from outside the UAE, it is still required to register for VAT and file returns. However, in this scenario, there is no VAT payment necessary since all the revenue is Zero Rated.
It is important to note that if you operate through a Free Zone, your circumstances may differ. Therefore, we recommend contacting us for advice in this area.
We are here to assist you. Moreover, our team of professionals can provide guidance and support in navigating the complexities of VAT regulations, ensuring compliance while optimizing your tax position. For expert tax advice tailored to your needs in the UAE, reach out to us today for the best solutions.