For the transporter it needs to be established beforehand that he has been engaged in the course of international transportation and is not a separate transportation service...please refer Art 33.1.d It shud be evident that commencement of transportation is in the course of international shipment itself...mere transportation of goods from mainland to DZ does not constitute international transport services

If these services are the part of International Movement of Goods hence need to obtain the copy or number of ED/ID or BL. So sufficient evidences are there to treat it 0% either transportation services of international goods & services from/to UAE.

We are receiving different -different type cases. Where FTA is imposing penalties in the same nature of business and providing refund in same cases. Do you have any public clarification in this regarding from FTA.

FTA has not issued a public clarification on this matter. But in 2018 in one of their sessions they had addressed scenario of VAT treatment on subcontracted transportation services and it was communicated that the services of the subcontractor can be zero rated (slide from the session is available with me). It could be that in some of the cases you have come across they were unable to justify that they had been subcontracted as part of international transportation. Article 33 (1d) of ER specifically address such scenarios and that it can be zero rated.

Can you please share slide of the session ? Email I'd tejveersingh10@gmail.com Thanks

@Tejveer, i have emailed them to you.