United Arab Emirates VAT


Frequently asked questions about UAE VAT

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in the UAE. It is a consumption tax because it is ultimately borne by the final consumer.

Who must pay VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.

Why am I being charged VAT?

Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the rules concerning Electronically Supplied Services (ESS) in the UAE. As such, Zoom is required to collect UAE VAT on all supplies of ESS made to customers in UAE.

What is a TRN (VAT number)?

A Tax Registration Number “TRN” (VAT Number) is a unique numeric 15-digit number that identifies a person/entity as being registered for VAT purposes in the UAE.

Does Zoom have a TRN (VAT number)?

Yes, Zoom will include its TRN (VAT number) on the tax invoices issued to customers in the UAE.

How is Zoom determining which customers VAT applies to?

If a customer's ‘Sold To’ location is in the UAE, and the customer has not provided a valid UAE VAT ID, Zoom will charge VAT on its invoices.

This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.

It is your responsibility as a customer to ensure that your ‘Sold To’-address is accurate.

Is there a minimum threshold purchase amount before VAT is applied?

No, VAT applies on the sale of all Zoom’s services that are used and enjoyed in the UAE.

What exemptions are available?

None. Based on the current VAT legislation in the UAE, all services currently provided by Zoom are subject to VAT in the UAE.

Are there any special exemptions applicable for charities under which VAT may not be charged?

No, based on current UAE VAT legislation, there should not be any special exemptions applicable for supplies made by Zoom to charities in the UAE. 

Will VAT apply even if a UAE company provides a valid TRN (VAT number) to Zoom?

Yes, VAT applies to the sale of all Zoom’s services where the ‘Sold To’ location is UAE.

Are there any VAT obligations for me as a customer?

If you are registered for VAT in the UAE and you want to claim an input tax credit for the VAT paid to Zoom, you should ensure that you provide Zoom with your Tax Registration Number (see ‘How do I enter my TRN’ for further details). In addition, as a minimum you should also keep a copy of Zoom’s invoice for your records.

How do I enter my TRN?

To provide your TRN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.

  1. Sign in to the Zoom web portal.
  2. In the navigation menu, click Plans and Billing then Billing Management.
  3. In the Contact Information section, click Edit.
  4. Enter your VAT Number.
  5. Click Save.
  1. Sign in to the Zoom web portal.
  2. In the navigation menu, click Account Management then Billing.
  3. Click the Billing Information tab.
  4. To the right of Sold To Contact, click Edit.
  5. Enter your VAT Number
  6. Click Save Changes.

If I have entered my TRN will Zoom issue me an invoice?

Yes, Zoom will issue an invoice for all supplies made to business customers.

On the invoice you receive from Zoom if you have entered your TRN in your Zoom account your invoice will show your TRN, business name as well as other details specific to the supplies Zoom makes to you. 

If I do not have a TRN will I get an invoice?

Yes, Zoom will issue an invoice for all supplies made to non-business customers where VAT is charged.

What if I have a TRN and forget to enter it?

Your TRN can be entered at any time.  If entered before the next invoice is issued, your TRN will show on the next invoice and future invoices issued to you. 

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.