Who qualifies for an exception
The exception exists because a fully zero-rated business would only ever claim refunds from the FTA. It applies only if every supply you make is zero-rated. If you make even some standard-rated sales, or you have reverse charge obligations on imports, you must register for VAT normally.
Zero-rated supplies include
- Exports of goods and services outside the GCC
- International transport of passengers and goods
- Certain aircraft, ships and related supplies
- Investment-grade precious metals
- Certain qualifying healthcare and education services
- First supply of newly built residential property
What you give up
An excepted business cannot recover the VAT it pays on its own costs. For some businesses that outweighs the saving in paperwork, so we compare both routes for you before applying.
The exception is not permanent
It holds only while all your supplies stay zero-rated. If you start making standard-rated sales, you must register for VAT. Tell us as soon as your activities change and we will handle it.
Documents required for VAT exemption certificate
- Trade licence
- Emirates ID and passport of owners and authorised signatory
- Memorandum of Association or certificate of incorporation
- Proof of business address, such as a tenancy contract or Ejari
- Sales records and contracts showing all supplies are zero-rated
- A signed declaration that you make no standard-rated supplies and no reverse charge imports
- Bank account details (IBAN letter)
How VATAXSYS handles your VAT exemption certificate
Eligibility review
We check your sales and confirm whether every supply really is zero-rated.
Compare the options
We show you the cost of registering normally against being excepted.
Application on EmaraTax
We prepare the application with the declaration and supporting evidence.
Confirmation issued
We follow up with the FTA and share your exception confirmation.
VAT Exemption Certificate FAQs
What is a VAT exemption certificate in the UAE?
It is the FTA's confirmation that your business is excepted from VAT registration because all of its supplies are zero-rated. You receive a Tax Identification Number ending in XC instead of a normal TRN.
Who can apply for an exception from VAT registration?
Businesses whose supplies are all zero-rated, with no standard-rated sales. Exporters and certain international transport, healthcare and education providers are typical examples.
Is the exception automatic?
No. You must apply through EmaraTax with supporting documents, and the FTA decides whether to grant it.
Can I still recover VAT on my costs if I am excepted?
No. An excepted business does not file VAT returns, so it cannot reclaim input VAT. If your costs carry significant VAT, normal registration may be better.
What happens if I start making standard-rated sales?
The exception no longer applies and you must register for VAT. We can handle the registration and make sure the change is reported on time.