AL RUQIU Introduces 5% VAT: What UAE Buyers Should | AL RUQIU

AL RUQIU’s company-provided 5% VAT policy for domestic and international abaya orders, including zero-rating evidence and practical guidance for UAE buyers.

A clear VAT update for AL RUQIU buyers

AL RUQIU Tailoring (S.P.S-L.L.C) is a registered UAE business. The company is VAT registered and Corporate Tax registered, with finance and legal compliance oversight. As a company-provided policy update, AL RUQIU applies 5% VAT to invoices for domestic and international clients unless a transaction qualifies for zero-rating under UAE VAT rules and the required evidence is retained.

This policy applies to existing clients and new clients. It is intended to make the amount shown on an invoice easier to understand before an abaya order is confirmed. The treatment of a particular transaction depends on its facts, the destination, the contractual arrangement, and the evidence available for the relevant supply.

What the 5% charge means

For an ordinary taxable supply, the invoice separates the agreed order value from VAT. Buyers should review the commercial quotation and final invoice together so they can see:

- the products or services covered by the order; - the taxable value used for the invoice; - VAT at 5%, where the transaction is treated as taxable; and - the total amount payable.

The 5% rate is the company’s stated standard treatment for invoices covered by this policy. It should not be read as a promise that every cross-border order has the same outcome. A transaction may be zero-rated where legal conditions are met and acceptable supporting evidence is retained. AL RUQIU does not describe exports as “VAT exempt”; zero-rated and exempt are different VAT treatments.

Domestic and international orders

Domestic UAE orders are generally reviewed as taxable supplies under the company’s invoicing policy. International orders are also invoiced with 5% VAT unless the transaction qualifies for zero-rating under UAE VAT rules and the evidence required for that treatment is retained.

An international buyer should therefore share accurate order and delivery information early. Useful information can include the buyer’s legal details, destination, consignee, agreed shipping route, and any documents relevant to export evidence. Providing a foreign address by itself does not decide the VAT treatment. The finance and legal compliance review considers the complete transaction record.

Why shipment evidence matters

Recognized international couriers such as Aramex, DHL, or FedEx may supply shipment documentation. Those records can be relevant when the company evaluates whether the evidence supports zero-rating. However, the courier brand alone does not determine tax treatment. A shipment handled by a recognized courier still needs to be reviewed against the applicable UAE VAT conditions and the records retained for the transaction.

Cargo or local delivery arrangements that do not provide acceptable export evidence remain charged 5% under AL RUQIU’s company policy. Buyers should not assume that a freight forwarder, local driver, collection agent, or shipping label automatically proves an export. The evidence must match the actual movement and transaction being reviewed.

What buyers should do before placing an order

1. Ask for a quotation that identifies whether VAT is included or shown separately. 2. Confirm the legal buyer, delivery destination, consignee, and intended route. 3. Tell AL RUQIU if the order is intended for export and provide requested documentation promptly. 4. Keep the quotation, invoice, courier or cargo records, and delivery evidence together. 5. Check the final invoice before payment and raise a question if the treatment does not match the agreed facts.

These steps help a buyer and AL RUQIU keep one consistent order file. They also reduce confusion when an order changes from courier delivery to a local or cargo arrangement, or when the consignee and destination are amended.

A practical example without assuming the outcome

Suppose an international brand orders abayas and requests delivery outside the UAE. The parties can record the destination and proposed courier, and AL RUQIU can review the available evidence as the order moves through dispatch. If the legal conditions for zero-rating are met and the required evidence is retained, the transaction may be zero-rated. If acceptable export evidence is not available, the company policy is to charge 5% VAT. The same analysis applies to existing and new clients; the invoice cannot be decided by a courier name alone.

Official reference and buyer support

Readers can review the UAE Federal Tax Authority’s VAT information at https://www.tax.gov.ae/en/vat.aspx and the VAT legislation page at https://www.tax.gov.ae/en/legislation/vat.aspx. AL RUQIU’s finance and legal compliance oversight reviews the company’s order records, but each buyer remains responsible for the information it supplies and for understanding its own obligations.

This article is informational and is not tax advice. For a transaction-specific conclusion, consult the UAE Federal Tax Authority or your tax adviser. Buyers can also ask AL RUQIU to confirm how the proposed order and available evidence will be reflected on the invoice before dispatch.