Exporting services to a client in Dubai, Abu Dhabi or Sharjah works like any other export from India: you raise an export invoice, declare it on your monthly EDF with "United Arab Emirates" in the country column, and get paid within the realisation window. For foreign-currency invoices, the full value must be realised within 9 months from the invoice date, whether you bill in dirhams or dollars. The UAE-specific points are about currency choice, the documents clients request, and one GST trap common in Gulf work.
Key takeaways
- Invoice in AED or USD; both are common, and the choice affects conversion, not your EDF obligation.
- Each UAE invoice is one row in Part 2B, with United Arab Emirates as the recipient's country.
- UAE clients may ask for your tax residency certificate or other documents; respond carefully and involve your CA where tax is affected.
- India and the UAE have a DTAA, which matters if any tax is withheld on your payments.
- Watch the intermediary trap: arranging services for a UAE company's own customers may not qualify as an export for GST.
Choosing the invoice currency
Indian service providers billing UAE clients usually invoice in UAE dirhams (AED) or US dollars (USD). The dirham has long been pegged to the dollar, so many clients are relaxed either way.
There are practical reasons to prefer one. USD invoices are familiar to most Indian banks and keep your foreign-currency reporting simple if your other clients pay in dollars. AED invoices can be easier for smaller UAE clients whose accounts are in dirhams. Whichever you choose, state it clearly on the invoice and use the same currency in Part 2B of your EDF.
Invoicing in Indian rupees is possible only where the settlement route is permitted, and it changes the realisation window to 12 months. Most UAE work is billed in foreign currency, so plan around the 9-month rule.
Payment routes from the UAE
The most common route is a SWIFT transfer from the client's UAE bank to your Indian current account. Some clients use payment platforms or collection services instead. Each route affects fees and the documents you receive, but not whether you file.
| Route | What you receive | Check |
|---|---|---|
| SWIFT wire to your Indian bank | Foreign-currency credit, then FIRA or advice from your bank | Purpose code, remitter name, charges deducted |
| Payment platform or collection service | Payout to your Indian bank via the provider | What evidence the provider and your bank can issue |
| Client pays from a group company elsewhere | Credit from a third party | May be a third-party payment; ask your bank what it needs |
Put your bank's SWIFT code, your account details and, if relevant, intermediary bank instructions on every invoice. Our export invoice generator has fields for these.
Tax documents UAE clients may ask for
UAE clients increasingly operate under their own tax rules, and their finance teams may ask you for paperwork before paying. What they ask for varies by client, and you should not assume a fixed list.
Common requests include your company registration details, a copy of your PAN, a tax residency certificate, and confirmation of your legal name and address for their records. Some clients ask you to show their UAE tax registration number on the invoice. These requests are usually straightforward, but if a client says it needs to deduct tax from your payment, pause and ask your CA before agreeing.
Our guide to tax residency certificates and Forms 10FA and 10FB explains how to obtain a TRC in India.
The DTAA and withholding
India and the UAE have a double taxation avoidance agreement. A DTAA mainly matters when one country withholds tax on a payment that the other also taxes. If your UAE client withholds any amount, the treaty may reduce or remove that tax, and you may be able to claim credit for it in India. Whether any withholding applies at all to your service is a question for the client's advisers and your CA.
Our article on DTAA basics for service exporters covers the mechanics. Keep whatever certificate the client provides for any tax deducted; you will need it for your Indian return.
The intermediary trap in Gulf work
A lot of Indian service work for the UAE flows through UAE companies that resell or coordinate services for their own clients across the region. If your UAE client is simply buying your service and using or reselling it, you are generally supplying to them. But if you are acting as a go-between, arranging or facilitating supplies between your UAE client and someone else, GST may treat you as providing intermediary services, with a place of supply in India.
That would mean your invoice is not a zero-rated export, even though the client and payment are foreign. Read our explainer on intermediary services and GST and ask your CA to review contracts that look like agency or referral arrangements.
A worked example: monthly retainer to Dubai
Saltpan Digital LLP, a Mangaluru performance marketing agency, runs paid campaigns for a Dubai real estate brokerage on a retainer of AED 28,000 a month. It also built a landing page for an Abu Dhabi clinic for USD 3,400 in November 2026.
Saltpan's November EDF, due by 30 December 2026, has two rows in Part 2B:
| Recipient | Country | Currency | Amount | Description |
|---|---|---|---|---|
| Dubai brokerage | United Arab Emirates | AED | 28,000 | Paid media management, November 2026 |
| Abu Dhabi clinic | United Arab Emirates | USD | 3,400 | Landing page design and build |
Field 1.17, country of final destination, is United Arab Emirates for both. Both invoices carry Saltpan's LUT wording, "Supply meant for export under LUT without payment of IGST", after its CA confirms the retainer is a direct supply to the brokerage rather than an intermediary arrangement.
The brokerage pays monthly by SWIFT within 30 days. The clinic pays in February 2027. Both are well within the 9-month window, and both invoices are under ₹10 lakh, so Saltpan includes them in its quarterly realisation declaration.
This is general information, not legal or tax advice. Rules on both sides change, so confirm the current position with your CA and bank.
Frequently asked questions
Should I invoice UAE clients in AED or USD?
Either works. USD keeps your records consistent if most clients pay in dollars, while AED can suit smaller UAE clients. Use the same currency on the invoice and in Part 2B of your EDF.
What country do I enter on the EDF for a client in Dubai?
Enter United Arab Emirates as the recipient's country in Part 2B, and in field 1.17 where the whole month's exports go to the UAE. If your month includes clients in several countries, ask your bank how it wants field 1.17 filled.
Do UAE clients deduct tax from payments to Indian service providers?
It depends on the client's situation and the service. Many clients will simply pay the invoice, while some may ask for documents first. If a client says it will deduct tax, get details in writing and speak to your CA about DTAA relief.
How long do I have to get paid by a UAE client?
For foreign-currency invoices, the full value must be realised within 9 months from the invoice date. Your AD bank can extend this on a reasoned request if a client is genuinely delayed.
Is my work for a UAE company always zero-rated under GST?
Not always. It must meet all the export conditions in Section 2(6) of the IGST Act, and arrangements where you act as a go-between may be intermediary services with a place of supply in India. Ask your CA to review such contracts.
Bottom line
UAE work fits neatly into the EDF routine: invoice clearly in AED or USD, list each invoice with United Arab Emirates as the country, and track realisation. Prepare your monthly declaration with our free EDF form generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.