Is VAT charged on the shipping fees for goods I export?

Transport of goods that crosses the UAE's border (export, import, or goods in transit) is zero-rated — whether by sea, air, or road — and this also covers logistics services directly tied to the cross-border shipment, like port storage and handling. Transport that happens entirely within the country's borders (delivery from a warehouse to a customer inside the UAE, for instance) is taxed at the standard 5%, like any domestic service.

The common mistake is companies zero-rating every shipping charge that appears on an export invoice, without separating the international leg from any domestic leg (like transport from the factory to the port within the country). At RASEEKH, we help you split the international and domestic shipping components accurately on your invoices, so the correct rate is applied to each part and you avoid a later FTA review.