InDirect Export
In case of Indirect Export and there is one of condition "The goods should not be used or altered in the time between supply and export or customs suspension, except to the extent necessary to prepare the goods for export or customs suspension".
Example: An overseas customers appoints an Agent for the shippiment and goods worth of AED: 500K purchased company A ( which are originally imported) and also made addtioanl body's work of AED: 50,000 from company B which is also appointed/handled by him on it locally and paid VAT.
Can company A treats it under Indirect Export AED: 500K as 0% (export) while customer provided all export papers and exit within in 90 days but addtional parts/modification/value addtion has been made between time of supply & export.
Replies
If the goods sold by A are modified by the customer through additional works prior to exporting the same, strictly based on the provisions of the Law, A would not be eligible to treat this as indirect export. Alternatively had A carried out the additional work by itself (including assigning B to do the job) and then sold the final product to the overseas customer who then exports it, this would be eligible for zero rating.
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