The original text of Clause (2) of Article 31
“For the purpose of paragraph (a) of Clause (1) of this Article, a Person shall be considered as being “outside the State” if they only have a short-term presence in the State of less than a month, or the only presence they have in the State is not effectively connected with the supply”.
is amended to
“For the purpose of paragraph (a) of Clause 1 of this Article, a Person shall be considered as being “outside the State” if they only have a short-term presence in the State of less than a month and the presence is not effectively connected with the supply”.
After combining the two conditions (a short-term presence in the State less than one month and the presence is not effectively connected with the supply), the scope of zero-rating export of services is narrowed. Therefore, zero-rating the export of services shall not be applied in the case where the non-resident recipient:
• stays in the UAE for a month or more; or
• stays in the UAE for less than a month but his presence in the UAE is effectively connected with the supply.
