Zero-rated and exempt supplies (boxes 4 and 5)

Where these boxes are

On the VAT Form 201, box 4 and box 5 sit just under box 1 in the VAT on sales and outputs part of the return.

1. Log in to your workspace.
2. In the left menu, under Finance, click Your Accounts.
3. In the accounts menu, under Tax, click VAT.
4. Look at the panel titled VAT Return, Form 201.

You will see:

• Box 4, Zero-rated supplies
• Box 5, Exempt supplies

Each shows an amount in the net column and a dash in the VAT column, because neither type of supply carries any VAT to charge.

What zero-rated means

A zero-rated supply is still a taxable supply, but the VAT rate on it is 0% instead of 5%. You charge no VAT, yet the supply is inside the VAT system. In the UAE this covers things like exports of goods and services outside the GCC, international transport, and certain education and healthcare. Because it is a taxable supply, you can still reclaim the input VAT on costs linked to it.

What exempt means

An exempt supply carries no VAT at all and sits outside the taxable pool. Common UAE examples are certain financial services, residential property (after the first supply), bare land, and local passenger transport. The difference from zero-rated matters: input VAT on costs used to make exempt supplies is usually not recoverable.

Why both usually show zero

A typical corporate-service-provider firm bills professional fees, and those fees are standard-rated at 5%. So all of your fee income lands in box 1, not box 4 or box 5. IzzyTap does not track any supplies as zero-rated or exempt, so boxes 4 and 5 report as AED 0.00 for a standard-rated firm.

If you genuinely make zero-rated or exempt supplies

If your firm makes real zero-rated or exempt supplies, those figures are not tracked inside IzzyTap today. Enter them directly on the FTA e-Services portal when you file, and check the amounts with your tax agent first.

Related: What each box on the VAT Form 201 means and Charge VAT on an invoice.