1VAT-exempt financial services are excluded
The published exclusions cover VAT-exempt financial services, which is a specific category rather than a blanket exemption for anything financial.
The financial centres raise a genuinely interesting question, because the published exclusions touch financial services — but in a narrower way than most people assume, and the distinction matters a great deal if you operate here.
If you take four things away from this page, make them these.
The published exclusions cover VAT-exempt financial services, which is a specific category rather than a blanket exemption for anything financial.
This is the point that catches firms out. Standard-rated financial services are explicitly in scope, so a mixed business has both sides to handle.
Holding structures that are genuinely passive appear in the exclusions. Structures that also provide services usually are not passive.
A law firm, consultancy or corporate services provider in DIFC or ADGM is invoicing business clients like anyone else and is in scope.
Seven things that turn a vague worry into a manageable task list.
Our e-invoicing product is being built now, alongside the ERP, CRM and accounting systems our technology team already runs for UAE clients. Early-access clients get their requirements built into the core rather than bolted on afterwards, which is genuinely better for them and better for the product. Start with invoicing and add the rest when your business actually needs it.
GoldenKey is a business setup and compliance consultancy. We are not a Ministry of Finance Accredited Service Provider, and we do not claim to be one. Our software is built to work alongside the ASP you appoint. Scope, timelines and pricing are agreed in writing before any work starts.
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Not as a category. VAT-exempt financial services and passive investment holding companies appear in the published exclusions, but standard-rated financial services are in scope, as are ordinary professional firms.
You will need to handle the standard-rated side compliantly. Getting the split right in your systems is the first task, and it is worth confirming formally.
With advisors who will put it in writing. This is a case where the general answer is genuinely insufficient.
Most people who call us assume they are exempt. Half of them are not. Finding out costs nothing.
No cost, no obligation. We tell you which phase you fall into and what you actually need.
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