VAT Zero rating on means of transport
Does dry docking expenses (repairs and maintenance and overhaul) incurred by a non-resident, foreign vessel owner (used for oil and gas exploration) from UAE suppliers subejct to 5% VAT or could it avail of VAT zero rating for repairs made to means of transport under Article 35 (1) (b) of ER?
The means of transport definition under the ER is quite vague "A supply of a ship, boat or floating structure that is designed or adapted for use for commercial purposes and which is not designed or adapted for recreation, pleasure or sports." and not specific to transport of goods and passengers so I'm thinking we could still fall under this exemption. thanks!
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The mentioned vessel ie that which is used for oil and gas exploration should fall within the definition of Article 34 since the usage is for commercial purposes and hence Zero rating under Article 35 should be possible.. The Article intends to exclude vessels such as private yachts and such which are not intended for commercial usage, in my view.
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