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 →

UAE VAT Reverse Charge Mechanism

VAT Reverse Charge Mechanism

Reverse Charge is a mechanism under which the recipient of goods and services is required to pay VAT instead of the supplier, when the supplier is not a taxable entity in the member state where the supply has been made. It’s used because the VAT registered purchaser has to account for VAT in respect of supplies. It’s typically used for cross-border transactions to relieve a non-resident supplier from the requirement to register and account for VAT in the country of the purchaser. Reverse charging is meant to put local and international suppliers on equal footing. Continue reading →