In this case since the Foreign company has a branch in UAE, it has a place of residence here. Further, VAT registration of the branch in effect would mean the HO is registered for VAT. So you need to charge VAT since branch is the recipient of the service and you can include HO name and TRN which they can claim through branch VAT return.

In the present case, while the agreement for provision of services is with the HO located outside the UAE (i.e. Non resident), the services are actually rendered to a branch within UAE. In terms of Article of 31 (1) (a) read with 31 (3) of the Executive Regulations, such services should be subject to VAT at 5% only if the person receiving the services would not be entitled to recover input tax in full. In other words, if the branch can substantiate that, if VAT is cahrged on such services, the branch will be eligible to recover the input tax on such services in full, the said services should be zero rated. The branch can provide an undertaking to this effect to the service provider and request the service provider to not charge VAT as per Article 31 (3) of the Executive Regulations.

The supply is happening locally within UAE. The branch is registered in the UAE so HO is present in UAE. This will be subject to VAT at 5%.