VAT on transportation of goods in the shipping industry in the UAE.

The VAT rating on transportation of goods in the shipping industry in the UAE depends on the following factors:

● The mode of transport: Transportation by sea, air, or road is subject to different VAT rates.

● The place of supply: Transportation that begins or ends in the UAE, or passes through the UAE, is subject to different VAT rates than transportation that is entirely within the UAE.

Here is a summary of the VAT rates for transportation of goods in the shipping industry in the UAE:

​Mode of transport	Place of supply	VAT rate
Sea	International	Zero-rated
Sea	Domestic	5%
Air	International	Zero-rated
Air	Domestic	5%
Road	International	Zero-rated
Road	Domestic	5%

For example, the transportation of goods by sea from Dubai to Singapore would be zero-rated, as it is an international transportation. However, the transportation of goods by road from Dubai to Abu Dhabi would be subject to VAT at 5%, as it is a domestic transportation.

It is important to note that there are some exceptions to these general rules. For example, the transportation of goods by sea that is entirely within the UAE may be zero-rated if it is part of an international transportation.

Here are some additional points to keep in mind:

● The VAT on transportation of goods is calculated on the basis of the value of the goods being transported.

● The VAT is payable by the person who contracts for the transportation of the goods.

● The VAT is not payable on the transportation of goods that are exempt from VAT, such as food and medical supplies.

I hope this helps!