VAT Place of Supply

VAT Place of Supply

The place of supply is where a transaction is considered to have occurred for VAT purposes. It is determined differently for goods and for services.

Place of supply will determine whether a supply is made in the UAE or outside the UAE for VAT purposes:

  • If the supply is treated as made outside the UAE: no UAE VAT will be charged
  • If the supply is treated as made in the UAE: VAT may be charged

Goods: Basic rule – the place of supply is the location of goods when the supply takes place. Continue reading →

VAT Liability - Export of goods and services

VAT Liability – Export of Goods and Services

VAT Liability – Export of Services

A supply of services shall be zero rated if all of the following conditions are met:

  • The services are supplied to a recipient who does not have a place of residence in a GCC State and who is outside of UAE at the time the services are performed, and
  • The services are not supplied directly in connection with: real estate situated in the UAE or any improvement to the real estate or moveable personal property situated in the UAE at the time the services are performed.

Services may also be zero rated where:

  • The services are actually performed outside the GCC or are the arranging of services that are actually performed outside the GCC;
  • The supply consists of the facilitation of outbound tour packages

For the purpose of this rule, “outside the UAE” includes a short term presence in the UAE (less than 1 month), or a presence that is not effectively connected with the supply. Continue reading →