Law kind
stringclasses 9
values | Law date & authority
stringclasses 183
values | Content
stringlengths 56
283k
|
|---|---|---|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (43)
Exemption of Residential Buildings
1. The supply of residential buildings shall be exempt ed, except for zero -rated supplies , if the
term of the lease contract is more than (6) six months or the lessee of the property holds an
ID card issued by the Federal Authority for Identity and Citizenship.
2. The term of the lease contract referred to in Clause (1) of this Article shall be dete rmined with
reference to the contractual period and shall not take into account any period arising from a
right or option to extend the term of the lease contract or renew the contract .
3. For the purposes of Clause (1) of this Article, a ny right of any party to terminate the lease
contract early shall be disregarded .
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (44)
Exemption of Vacant Land s
The “ vacant land” means the land on which no completed or partially completed buildings or civil
engineering works are established .
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (45)
Exemption of Domestic Passenger Transport Services
1. The supply of domestic passenger transport services by a qualifying means of transport by
land, water, or air from a place in the State to another place in the State shall be exempt ed.
2. The “qualifying means of transport” means:
a. Any motor vehicle, including a tax i, bus, train, tram, monorail train or similar means of
transport designed or adapted for transport of passenger s.
b. Any passenger boat, ferry or other similar vessel designed or adapted for transport of
passengers .
c. Any helicopter or airplane designed or adapted for transport of passengers in accordance
with Federal Law No. (20) of 1991 on Civil Aviation. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 44
3. Notwithstanding the provisions of Clause (1) of this Article, the passenger transport services
from a place in the S tate to another place in the State shall not be considered domestic
passenger transport service s if the transport is carried out by an aircraft and shall be deemed
as “international carriage” as defined in the Warsaw International Convention for the
Unific ation of Certain Rules Relating to International Carriage by Air 1929.
4. Notwithstanding the provisions of Clause (1) of this Article, the transport of passengers shall
not be deemed as domestic passenger transport services if it is undertaken in the contex t of a
pleasure trip whose main objective is sightseeing, or enjoyment of catering services, or other
forms of pleasure or entertainment.
Part Eight
Calculating the Tax on Certain Supplies
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (46)
Imposing Tax on Supplies Composed of More than One Component
For the purposes of the supply composed of more than one component :
1. If the supply is a single composite supply as set forth in article (4) of this Resolution , the
supply shall be subject to the same tax treatment of the principal component of the supply.
2. If the supply composed of multiple components is not a single composite supply, the supply
of each component shall be treated as a separate supply.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (47)
General Provisions Relating to the Importation of Goods
1. Without prejudice to the provisions of the Decree -Law and this Resolution , goods shall not
be treated as imported into the State according to the following:
a. If they are under a customs suspension scheme in accordance with the GCC Common
Customs Law, and provided that a financial guarantee or a cash deposit equal to the value
of the due tax is provided if requested by the Authority, in the following cases: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 45
1. Temporary admission .
2. Goods plac ed in a customs warehouse .
3. Goods in transit .
4. Imported goods to be re -exported by the same person .
b. Imported goods into a designated area from a place outside the State.
2. The t ax shall not be due on any import ation of goods if exempted from customs duties as per
the following categories in accordance with the GCC Common Customs Law:
a. Goods imported by the armed forces and internal security forces ;
b. Personal effects and gifts in the possession of travelers ;
c. Importation of u sed personal effect s and household items brought by nationals residing
abroad or foreigners coming to reside in the State for the first time ;
d. Returned goods.
3. If a person import s goods to the State through another applying state , the tax shall not be due
on such import, if the Authority establishes that the t ax is due on the supply or transport of
goods in such other applying state .
4. The Authority may determine the procedures to be followed by importers and Customs
Departments in respect of the import ation of goods .
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (48)
Calculating the Tax Under the Reverse Charge Mechanism on Import ation of
Relevant Goods or Relevant Services
1. For the purposes of import ing r elevant goods, the provisions of Clause (1) of article (48) of
the Decree -Law shall apply if the following conditions are met:
a. At the time of import ation , the taxable person can prove his tax registration .
b. The taxable person has sufficient details for the Authority to verify the import ation and
the tax to be due there on and is able to provide the same to the Authority upon request . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 46
c. The taxable person provide s the Authority with its own customs registration number
issued by the competent Customs Department, and such Customs Depar tment verif ies
the import ation in accordance with the rules laid down by the Authority.
d. The taxable person cooperate s with, and complie s with any rules imposed by , the
Authority in respect of the import ation .
2. If the conditions stipulated in Clause (1) of this Article are not met, the taxable person shall
calculate the t ax in respect of the importation in accordance with Clause (1) of article (50) of
this Resolutio n.
3. If the taxable person who has a place of residence in the State receives a supply of goods or
services , and the place of supply is in the State, from a supplier who has no place of residence
in the State and does not charge a tax on the supply, the supply shall be treated as being of
relevant goods or relevant services subject to Clause (1) of article (48) of the Decree -Law.
4. If Clause (1) of article (48) of the Decree -Law applies, the taxabl e person shall :
a. charge the t ax on the value of the relevant goods or relevant services at the rate which
would be applicable if the supply of the relevant goods or relevant services is made by a
taxable person within the State.
b. declare and pay the due tax in the tax return which relates to the tax period in which the
date of supply for the relevant goods or relevant services takes place .
5. If the taxable person calculates the d ue tax in accordance Clause (1) of article (48) of the
Decree -Law, such taxable person shall keep the following documents relating to the supply:
a. The supplier’s invoice containing the details and consideration paid for the relevant goods
or relevant services .
b. In case of relevant goods, a statement issued by the relevant Customs Department
showing the details and value of the relevant goods.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 47
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (49)
Payments for Goods Transferred to Another Applying State s
1. For the purposes of Clause (2) of article (48) of the Decree -Law, the taxable person shall pay
the due tax by using the payment method identified by the Authority.
2. The payment referred to in Clause (1) of this Article shall be made before or at the time of the
importation of the goods as determined by the Authority , unless expressly approved by the
Authority to defer the payment of the due tax .
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (50)
Import ation by Unregistered Persons
1. If relevant goods are imported by a person not registered for the t ax or if the taxable person
does not meet the conditions stipulated in Clause (1) of article (48) of this Resolution , the t ax
shall be paid to the Authority by or on behalf of the person before the goods may be released.
2. The Customs Departments shall cooperate with the Authority to ensure that the payable tax
on import ation has been settled before releasing the goods .
3. The t ax referred to in Clause (1) of this Article shall be settled using the payment method
determined by the Authority.
4. For the purposes of Clause (1) of this Article, if a person who is not registered for the t ax
imports goods hires an agent who acts on behalf of the person for the purposes of importing
the goods into the State and who is registered for the t ax in the Stat e, the agent shall be
responsible for the payment of the tax in respect of the importation of goods .
5. The obligation on the agent under Clause (4) of this Article to pay the t ax on behalf of another
person shall be met as part of the agent ’s tax return and pay the t ax as though he imported
the goods himself.
6. An agent who has paid tax in accordance with Clause (4) of this Article shall not recover as
input tax any tax paid on behalf of another person in accordance with obligations set out in
this Article. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 48
7. If an agent pays the tax on behalf of another person is accordance with this Article, it shall
issue a statement to that other person which contains, at the minimum, all of the following
details:
a. The name, address, and tax registration number of the agent.
b. The date upon which the statement is issued.
c. The date of import ation of the relevant goods.
d. A description of the imported goods.
e. The amount of tax paid by the agent to the Authority in respect of the imported goods.
8. The statement issued by the agent to a person in accordance with this Article shall be treated
as a tax invoice for the purposes of the documentation requirements in Paragraph (a) of
Clause (1) of article (55) of the Decree -Law.
Part Nine
Designated Area s
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (51)
Designated Areas
1. Any designated area specified by a resolution of the Cabinet shall be treated as being outside
the State and outside the applying states, subject to the following conditions :
a. The designated area is a specific fenced geographic area and has security measures and
customs controls in place to monitor entry and exit of individuals and movement of goods
to and from the area.
b. The designated area shall have internal procedures regarding the method of keeping,
storing, and processing of goods therein.
c. The operator of th e designated area complies with the procedures set by the Authority.
If the designated area changes the manner of operating or no longer meets any of the
conditions imposed on it that led to it being specified as a designated area under the
Cabinet Resolu tion , it shall be treated as if being inside the State. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 49
2. The transfer of goods between designated areas shall not be subject to the t ax if the following
two conditions are met:
a. If the goods , or part thereof, are not released, and are not in any way used or altered during
the transfer between the designated areas.
b. If the transfer is undertaken in accordance with the rules for customs suspension in
accordance with the GCC Common Customs Law.
3. If goods are moved between designated areas, the Authority may require the owner of the
goods to provide a financial guarantee for the payment of tax , which such person may
become liable for if the conditions for movement of goods are not met.
4. If a suppl y of goods is made within a designated area to a person to be used by him or a third
person, then the place of supply shall be the State unless the goods are to be incorporated
into, attached to, or otherwise form part of or are used in the production or sale of another
good s located in the same designated area which itself is not consumed.
5. If a supply of goods is made within a designated area to a person to be used by him or by a
third person, th en the place of supply shall be the State, except for any of the following
situations:
a. The goods are to be incorporated into, attached to or otherwise form part of or are
used in the production or sale of another goods located in the same designated area
which itself is not consumed.
b. The goods have been delivered to a place outside the State with the supplier keeping
a commercial or official record proving it and a customs record proving that the goods
were evacuated from the designated area.
c. The goods have been evacuated from the designated area to a place inside the State
with the supplier keeping an official record proving that the value added tax has been
applied to this import.
6. The place of supply of water or any form of energy shall be considered to be inside the State
if the place of supply is in a designated area. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 50
7. In exception to the provisions of clause (6) of this article, the place of supply shall be
considered outside the state if the suppled freight or delivery services were directly related to
goods whose place of supply is outside the State in accordance with paragraphs (b) and (c) of
clause (5) of this article, and the following conditions have been collectively met :
a. The freight or delivery services are supplied by the same supplier of goods .
b. The supplier of goods shall be a non -resident and not registered for tax .
c. The goods shall be sold through an electronic sales platform; and by "electronic sales
platform" it is means any type of electronic platform for online sales, including electronic
websites and applications, and that gathers people from sellers and buyers, and which
enables the selling and buying of goods with or without freight or delivery services.
d. The person owning the electronic sales platform shall not be the supplier of goods.
8. The place of supply of water or any type of energy shall be considered inside the State if the
place of supply was located in the designate area .
9. The goods present inside the designated area, for which its owner has not settled its tax, shall
be treated a s if it was imported into the State if:
a. The goods were consumed by the owner, unless the goods are incorporated into, attached
to or otherwise form part of or are used in the production of other goods located in a
designated area which are not consumed.
b. The goods are unaccounted for.
10. Any person established, registered or which has a place of residence in a designated area shall
be d eemed to have a place of residence in the State for the purposes of the Decree -Law.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 51
Part Ten
Calculation of the Due Tax
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (52)
Input Tax Refund in Respect of Exempt ed Supplies
1. Supplies referred to in paragraph (c) of Clause (1) of article (54) of the Decree -Law are the
supplies of financial Services, where the place of supply of these Services is treated as outside
the State and the recipient of services is outside the State at the time when the services are
performed.
2. For the purpose of Clause (1) of this Article a person is “outside the State” even if they are
present in the State, provided it is only a short -term presence in the State of less than a month,
or that his presenc e is not effectively connected with the supply.
3. Any tax paid by a person in another applying state on the importation of goods to the State
through that applying state or on the supply of goods to this person in such applying state
where the goods are then transferred to the State, is refundable in the State if the relevant
Goods will be used or are intended to be used in accordance with Clause (1) of Article 54 of
the Decree -Law and the following conditions are satisfied:
a. The tax able person keeps evidence that he has paid the t ax in another applying state in
respect of the relevant goods.
b. The tax able person has not recovered the tax paid in any other applying state .
c. The tax able person has complied with any additional reporting requirement that t he
Authority may specify.
4. If the first supply of a residential building by a taxable person is by way of lease which is zero -
rated in accordance with provisions of the Decree -Law, the tax able person may recover Input
Tax in full in respect of that supply regardless of any future intention to make later exempt
supplies in respect of that resident ial building.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 52
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (53)
Non -Refundable Input Tax
1. The i nput tax shall be non -refundable if incurred by a person in respect of the following
taxable supplies:
a. If the person is not a government agency as specified in a Cabinet Resolution in
accordance with article (10) and (57) of the Decree -Law, and there is provision of
entertainment services to anyone not employed by the person , including customers,
potential customers, officials, or shareholder or other owners or investors.
b. If a motor vehicle is purchased, rented, or leased for use in the business and is available
for personal use by any person.
c. If goods or services are purchased to be used by employees for no charge to them and for
their personal benefit including the provision of entertainment services, except in the
following cases:
1. If it is a legal obligation to provide such services or goods to such employees under
any applicable labor law in the State or designated area.
2. It is a contractual obligation or documented policy to provide such services or goods
to such employees in order that they may perform their role and it can be proven to
be normal business practice in the course of employing those people .
3. If the provision of goods or services is a deemed supply under the provisions of the
Decree -Law.
2. For the purposes of this Article:
a. The “entertainment services” mean hospitality of any kind, including the provision of
accommodation, food and drinks which are not provided i n a normal course of a meeting,
access to shows or events, or trips provided for the purposes of pleasure or entertainment.
b. The “motor vehicle” mean s a road vehicle which is designed or adapted for the
conveyance of no more than 10 people including the dr iver. A motor vehicle shall exclude
a truck, forklift, hoist, or other similar vehicle. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 53
3. Provision of catering and accommodation services shall not be treated as entertainment
services where it is provided by a transportation service operator, such as an a irline, to
passengers who have been delayed.
4. A motor vehicle shall not be treated as being available for private use if it is within any of the
following categories:
a. a tax i licensed by the competent authority within the State .
b. a motor vehicle registered as, and used for purposes of an emergency vehicle, including
by police, fire, ambulance, or similar emergency service .
c. a vehicle which is used in a vehicle rental business where it is rented to a customer.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (54)
Special Cases of Input tax
1. The amount of refundable tax that can be reclaimed by a taxable person in the tax period in
relation to the supply of goods or services made to him, is the amount of Input Tax that relates
to the portion of consideration in respect of the supply that has b een paid during such tax
period .
2. For the purposes of paragraph (b) of Clause (1) of article (55) of the Decree -Law, a taxable
person shall be treated as having made a payment of consideration for a supply to the extent
that the tax able person intends to m ake the payment before the expiration of six months after
the agreed date for the payment for the supply.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 54
Part Eleven
Apportionment of Input Tax
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (55)
Apportionment of Input Tax
1. If there are quarterly tax period s, the tax year shall be as follows:
a. If a taxable person ’s tax period ends on 31 January and quarterly thereafter, the tax able
person ’s tax year shall end on 31 January of every year.
b. If a taxable person ’s tax period ends on last day of February and quarterly ther eafter, the
taxable person ’s tax year shall end on the last day of February of every year.
c. If a taxable person ’s tax period ends on 31 March and quarterly thereafter, the tax able
person ’s tax year shall end on 31 March of every year.
2. If the tax period is 12 months, the tax year shall be the same as the tax period .
3. If the tax period is 1 month, the tax year shall be the total tax period s in the year ending on
last day of the calendar year.
4. In any other case where Clauses (2) and (3) do not apply, the Authority shall specify the tax
year.
5. To determine the input tax that could be refundable , the tax able person shall apportion the
input tax as follows:
a. The input tax on supplies that wholly rel ate to supplies as specified in Clause (1) of Article
(54) of the Decree -Law made by the tax able person shall be refundable in full.
b. The input tax that does not relate to supplies as specified in Clause (1) of article (54) of
the Decree -Law made by the taxable person shall not be refundable unless provisions
allow otherwise.
c. The input tax that partly relates to supplies as specified in Clause (1) of article (54) of the
Decree -Law and partly not, shall be apportioned in accordance with Clause (6) of this
Article and only that part that relates to supplies as specified in Clause (1) of article (54)
of the Decree -Law shall be refundable . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 55
6. The input tax that could be refundable shall be calculated as follows:
a. The tax able person shall calculate the percentag e of refundable tax calculated by
reference to article (54) of the Decree -Law to the sum of refundable tax and non -
refundable tax for the tax period .
b. The percentage calculated under paragraph (a) of this Clause shall be rounded to the
nearest whole number .
c. The percentage calculated under paragraph (b) of this Clause shall be multiplied by the
amount of the i nput tax referred to in Paragraph (c) of Clause (5) of this Article to establish
the refundable portion of such input tax.
7. The calculations referred to above shall be undertaken in respect of each tax period where
input tax incurred relates to making exempt ed supplies or to activities that are not in the
course of the b usiness.
8. At the end of each tax year the tax able person shall undertake the calculation mentioned in
Clause (6) of this Article, but in respect of the entire tax year just ended in the first tax period
of its subsequent tax year.
9. The input tax properly refundable for the tax year just ended as described in Cl ause (8) of this
Article shall be compared to the input tax amount actually recovered in all the tax period s
making up the tax year, and an adjustment to the refundable tax shall be made in the tax
period mentioned in Clause (8).
10. If the difference in any tax year between the refundable tax as calculated under this Article
and the refundable tax which would arise if a calculation is made which reflects the actual use
of the goods and services to which the input tax relates, exceeds AED 250,000 (two hundred
fifty thousand dirhams), the tax able person shall, in the tax period referred to in Clause (8) of
this Article, make an adjustment to the input tax in respect of the difference.
11. If the application of the calculations mentioned in this Article give s a result which the tax able
person considers would not reflect the actual extent to which the input tax relates to making
taxable supplies, he may apply to the Authority to authorize the u se of an alternative basis of
calculation based on the list of accepted mechanisms issued by the Authority. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 56
12. The Authority may accept that the tax able person may use an alternative mechanism of
apportionment of input tax than that referred to in this Artic le from such future date and as
per any further conditions as determined by the Authority.
13. The tax able person may only apply to change the alternative mechanism with effect from at
least two tax years after he was first approved to use it.
14. The Authority may request such information from the tax able person as it believes is
necessary to make a decision regarding application made under Clause (11) of this Article.
15. If the Authority accepts the application made under Clause (11) of this Article, it shall iss ue a
notification to the tax able person setting out the alternative calculation method and
conditions for using of such method.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (56)
Adjustment of Input Tax Post -Refund
1. If the i nput tax is refunded because it is attributed to supplies as specified in Clause (1) of
article (54) of the Decree -Law but, before the consumption of the goods or services upon
which that input tax is incurred the input tax becomes not so attributable, then the tax able
person shall be requ ired to repay such input tax.
2. If the i nput tax is not refunded because it is not attributed to supplies specified in Clause (1)
of article (54) of the Decree -Law but, before the consumption of the goods or services upon
which such input tax is incurred, the input tax bec omes attributable to supplies as specified
in Clause (1) of A rticle (54) of the Decree -Law, then the tax able person shall be able to recover
the i nput tax attributable to the use of the goods or services for making such supplies.
3. If the i nput tax is treated as subject to apportionment to calculate the input tax tha t could be
refunded , but before the consumption of the goods or services upon which such input tax is
incurred, the use of such input tax changes, then it shall be adjusted as follows:
a. If it becomes attributable to supplies as specified in Clause (1) of article (54) of the Decree -
Law , then the tax able person shall be able to recover the i nput tax not previously Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 57
recovered to the extent that it is attributable to the use of the goods or services for making
such supplies.
b. If it ceases to be attributable to any supplies specified in Clause (1) of article (54) of the
Decree -Law, then the tax able person shall be required to repay such input tax.
4. The adjustments for change in use of goods or services under this Article shall be made only
if all of the following conditions are met:
a. The change in use occurred within five years of the date of supply of the relevant goods
and services .
b. The tax able person is not required to adjust the same input tax under mechanisms
provided in Articles (55) and (57) of this Resolu tion in which case those mechanisms will
apply.
Part Twelve
Capital Asset Scheme
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (57)
Assets Considered Capital Assets
1. A Capital Asset is a single item of expenditure of the business amounting to AED 5,000,000
or more excluding the t ax, on which tax is payable and which has estimated useful life equal
or longer than:
a. 10 years in case of a building or a part thereof.
b. 5 years for all Capital Assets other than buildings or parts thereof.
2. Items of stock, which are for resale, shall not be treated as capital assets.
3. Expenditure consisting of smaller sums which collectively amount to AED 5,000,000 or more
shall be treated as a single item of expenditure of AED 5,000,000 or more fo r the purposes of
this Article where the sums are staged payments for any of the following:
a. For the purchase of a building.
b. For the construction of a building. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 58
c. In relation to an extension, refurbishment, renewal, fitting out, or other work undertaken
to a building, except that where there is a distinct break between any such works being
undertaken they shall be taken to be separate items of expenditure.
d. For the purchase, construction, assembly or installation of any goods or immovable
property where components are supplied separately for assembly.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (58)
Adjustments Under the Capital Assets Scheme
1. A capital asset eligible for the Capital Asset Scheme shall be monitored and the input tax
incurred shall be adjusted, as required in accordance with the provisions of this Article, over
a period of either (10) ten consecutive years for buildings or parts thereof or (5) five
consecutive years for other capital assets, commencing on the day on which the owner first
uses the capital asset for the purposes of its business.
2. Notwithstanding the provisions of Clause (1) of this Article, if a capital asset is destroyed, sold,
or otherwise disposed of before the end of the period referred to in Clause (1) of this Article,
the Capi tal Asset Scheme shall cease in respect of the asset in the tax year in which the asset
was destroyed, sold, or disposed of.
3. The tax year in which the capital asset is acquired shall be treated as Year 1 for the purposes
of the Capital Asset Scheme.
4. A taxable person shall keep a capital asset register and record therein the input tax incurred
on the capital asset in Year 1 (represented by “W” in this Article) as well as details of any
adjustments made to the input tax calculations under this Article.
5. The refundable input tax on the capital asset in Year 1 after any adjustment that may be due
under article (58) of the Decree -Law shall be recorded together with th e percentage that gave
rise to that refund (referred to as “X” in this Article). Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 59
6. At the end of each year from Year 2 onwards, the tax able person shall calculate the percentage
of Refundable Tax for that Capital Asset for that year in accordance with Artic le (58) of the
Decree -Law (referred to as “Q” in this Article).
7. If Q is not equal to X, the tax able person shall perform the calculation described in Clauses (8)
to (11) of this Article and shall make an adjustment to his Input Tax.
8. The tax able person shall calculate an amount (referred to as “R” in this Article) as:
a. One tenth of W multiplied by Q if the capital asset is a building or a part thereof; or
b. One fifth of W multiplied by Q if the capital asset is not a buildings or a part thereof.
9. The tax able person shall calculate an amount (referred to as “Z” in this Article) as:
a. One tenth of W multiplied by X if the capital asset is a building or a part thereof.
b. One fifth of W multiplied by X if the capital asset is not a buildings or a part thereof.
10. If R is more than Z, the tax able person shall increase his input tax by the difference.
11. If R is less than Z, the tax able person shall reduce his input tax by the di fference.
12. If the capital asset is disposed of by the tax able person in any year other than the final year or
the tax able person deregisters from tax and is required to account for tax on the asset as a
deemed supply, the use to which the capital asset is deemed to have been put in any
remaining years will be:
a. For making taxable supplies, where it is disposed of by way of a supply or deemed supply
that is subject to the t ax or would be subject to the t ax were it to be made in the State.
b. For making exempt ed supplies, where it is disposed of by way of a supply that is exempt
or would be exempt were it to be made in the State.
c. Not in the course of conducting business, where is it disposed of by way of a transaction
that is not deemed as supply in the course of business, unless it is deemed as a supply
according to the meaning provided in Clause (2) of article (7) of the Decree -Law.
13. If a taxable person transfer s his capital assets as part of a transfer of his Business or a part
thereof according to Clause (2) of article (7) of the Decree -Law, or to become a member of a
tax group , or to leave a tax group and immediately become a taxable person on a stand -alone
basis, then the tax year then applying shall end on the day the tax able person transfers the Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 60
business or part of the Business, or becomes or ceases to be part of a tax group . On the next
day, the next tax year shall commence with the owner of the capital assets.
14. If a person who registers for tax has already owned a capital asset for the purpose of his
business before registration for tax, Year 1 shall be deemed to have commenced on the date
of first use by such person.
15. For the purposes of Clauses (12) and (13) of this Article, any adjustments that may be required
in respect of any such remaining years shall be included in the tax return relating to the tax
period in which the capital asset is disposed of.
16. Any adjustment s other than required under Clauses (12) and (13) of this Article shall be made
in the tax period mentioned in Clause (8) of article (55) of this Resolution .
Part Thirteen
Tax Invoices and Tax Credit Notes
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (59)
Tax Invoices
1. A tax invoice shall contain all of the following particulars:
a. The phrase “Tax Invoice” clearly displayed on the invoice.
b. The name, address, and tax registration number of the registrant making the supply.
c. The name, address, and tax registration number of the recipie nt where he is a registrant .
d. A sequential tax invoice number or a unique number which enables identification of the
tax invoice and the order of the tax invoice in any sequence of invoices.
e. The date of issuing the tax invoice .
f. The date of supply if diff erent from the date the tax invoice was issued.
g. A description of the goods or services supplied.
h. For each good s or service, the unit price, the quantity or volume supplied, the rate of tax
and the amount payable expressed in AED.
i. The amount of any discount offered. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 61
j. The gross amount payable expressed in AED.
k. The tax amount payable expressed in AED together with the rate of exchange applied
where the currency is converted from a currency o ther than the UAE dirham.
l. If the invoice relates to a supply under which the recipient of goods or recipient of services
is required to account for the t ax, a statement that the recipient is required to account for
the t ax, and a reference to the relevant provision of the Decree -Law.
2. A simplified tax invoice shall contain all of the following particulars:
a. The phrase “Tax Invoice” clearly displayed on the invoice.
b. The name, address, and tax registration number of the registrant making the supply.
c. The date of issuing the tax invoice .
d. A description of the goods or services supplied.
e. The total consideration and the tax amount charged.
3. If there are or will be sufficient records available to establish the particulars of a supply, a
taxable person is not required to issue a tax invoice for the supply where the supply is a wholly
zero -rated supply.
4. If a taxable person is required to issue a tax invoice , the tax invoice shall meet the
requirements of Clause (1) of this Article.
5. Notwithstanding the provisions of Clause (4) of this Article, the tax able person may issue a
tax invoice that meets the requirements of Clause (2) of this Article in either of the following
cases :
a. If the recipient of goods or recipient of services is not a registrant .
b. If the recipient of goods or recipient of services is a registrant and the consideration for
the supply does not exceed (AED 10,000 ).
6. A taxable person shall not issue separate tax invoice s in respect of supplies where he makes
more than one supply of goods or services to the same Person and those supplies are included
on a summary tax invoice issued to the recipient of goods or recipient of services in the same
calendar month as the date of supply of those supplies. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 62
7. If the Authority considers that there are or will be sufficient records available to establish the
particulars of any supply or class of supplies, and that it would be impractical to require that
a tax invoice be issued by the tax able person , the Authority m ay determine that, subject to
any conditions that the Authority may consider necessary:
a. Any of the particulars specified in Clauses (1) or (2) of this Article shall not be contained
on a tax invoice .
b. A tax invoice is not required to be issued in certain cases.
8. The tax able person may issue a tax invoice by electronic means provided that:
a. The tax able person shall be capable of securely storing a copy of the electronic tax invoice
in compliance with the record keeping requirements.
b. The authenticity of ori gin and integrity of content of the electronic tax invoice shall be
guaranteed.
9. If a recipient agrees to raise a tax invoice on behalf of a registrant supplier in respect of a
supply of goods or services , that document shall be treated as if it had been issued by the
supplier if the following conditions are met:
a. The recipient of the goods or services is a registrant .
b. The supplier and the recipient agree in writing that the supplier shall not issue a tax
invoice in respect of any supply to which this Clause applies.
c. The tax invoice shall contain the particulars required under Clause (1) of this Article.
d. The phrase “tax invoice raised by buyer” shall be clearly displayed on the tax invoice .
10. If a tax invoice is issued pursuant to Clause (9) of this Article, any invoice issued by the
supplier in respect of that supply shall be deemed not to be a tax invoice .
11. If an agent who is a registrant makes a supply of goods and services for and on behalf of the
principal of that agent, that agent may issue a tax invoice in relation to that supply as if that
agent had made the supply and provided that the principal shall not issue a tax invoice .
12. If the supply of goods or services is considered as supplied in an applying state , the tax able
person shall include the following additional particulars in the document issued: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 63
a. The tax registration number of the recipient of goods or services issued to him by the
competent authority of the applying state in which the supply is treated as taking place.
b. A statement identifying the supply as between the State and an applying state .
c. Any other information determined by the Authority.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (60)
Tax Credit Note
1. The tax credit note shall contain the following:
a. The phrase “Tax Credit Note” clearly displayed on the invoice.
b. The name, address, and tax registration number of the registrant making the supply.
c. The name, address, and tax registration number of the recipient where he is a registrant .
d. The date of issuing the tax credit note .
e. The value of the supply shown on the tax invoice , the correct amount of the value of the
supply, the difference between those two amounts, and the tax charged that relates to
that differ ence in AED.
f. A brief explanation of the circumstances giving rise to the issuing of the tax credit note .
g. Information sufficient to identify the supply to which the tax credit note relates.
2. If, on application by a taxable person , the Authority considers that there are or will be
sufficient records available to establish the particulars of any supply or class of supplies, and
that it would be impractical to require that a tax credit note be issued by the tax able person ,
the Authority may determine any of the following, subject to any conditions that the Authority
may consider necessary:
a. Any one or more of the particulars specified in Clause (1) of this Article shall not be
contained on a tax credit note .
b. A tax credit no te is not required to be issued.
3. The tax able person may issue a tax credit note by electronic means provided that: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 64
a. The tax able person shall be capable of securely storing a copy of the electronic tax credit
note in compliance with the record keeping requ irements.
b. The authenticity of origin and integrity of content of the electronic tax credit note shall be
guaranteed.
4. If a recipient of goods or recipient of services agrees to raise a tax credit note on behalf of a
registrant Supplier in respect of a supply of goods or services , that document shall be treated
as if it had been issued by the supplier if the following conditions are met:
a. The recipient of goods or recipient of services is a registrant .
b. The supplier and the reci pient of goods or recipient of services agree that the supplier shall
not issue a tax credit note in respect of any supply to which this Clause applies.
c. The tax credit note shall contain the particulars required under Clause (1) of this Article.
d. The phra se “tax credit note created by buyer” shall be clearly displayed on the tax credit
note .
5. If a tax credit note is issued pursuant to Clause (4) of this Article, any tax credit note issued by
the supplier in respect of that supply shall be deemed not to be a tax credit note .
6. If an agent who is a registrant makes a supply of goods and services for and on behalf of the
principal of that agent, that agent may issue a tax credit note in relation to that supply as if
that agent had made the supply and provided that the principal shall not issue a tax credit
note .
7. If approval has been granted by the Authority under Clause (2) of this Article, that approval
may be withdrawn at any time whe re the Authority considers that the conditions of that
approval have not been met.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (61)
Fractions of Fils
If the tax levied on a supply is calculated to a fraction of a Fils, the tax able person is permitted to
round the amount to the nearest Fils on a mathematical rounding. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 65
Part Fourteen
Tax Returns and Tax Periods
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (62)
Duration of the Tax Period
1. The standard tax period applicable to a taxable person shall be a period of three calendar
months ending on the date that the Authority determines.
2. Notwithstanding the provisions of Clause (1) of this Article, the Authority may assign a person
or class of persons a shorter or longer tax period where it considers that a non -standard tax
period length is necessary or beneficial to:
a. Reduce the risk of tax Evasion.
b. Enable the Authority to improve the monitoring of compliance or collection of tax
revenues.
c. Reduce the administrative burden on the Authority or the compliance burden on a person
or class of persons.
3. If a taxable person is assigned the standard tax period , he may request that the tax period ends
with the month as requested by him, and the Authority may accept such request at its
discr etion.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (63)
Tax Periods in the Case of Loss of Capacity
1. If a person becomes incapacitated, his current tax period shall end on the day before the
person became an incapacitated person. A new tax period shall commence on the day the
person became incapacitated person in the name of the legal representative.
2. For the purposes of Clause (1) of this Article , the “incapacitated person” means a registrant
who dies, or goes into liquidation or receivership, or becom es bankrupt or incapacitated. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 66
3. For the purposes of the new tax period referred to in Clause (1) and subsequent tax periods,
the legal representative shall be treated as the registrant himself for the purposes of the
Decree -Law and this Resolution throughou t the period of incapacitation.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (64)
Tax Returns and Payment of the Tax
1. A tax return shall be delivered to the Authority no later than the 28th day following the end of
the relevant tax period or by such other date as determined by the Authority.
2. A person whose registration has been cancelled shall provide a final tax return for the last tax
period for which he was registered.
3. The taxable person shall pay the payable tax by the means determined by the Authority so
that it is received by the Authority no later than the date specified in Clause (1) of this Article.
4. If the refundable tax for a tax period exceeds the d ue tax for such tax period , the excess
refundable tax may be repaid to the tax able person in accordance with the provisions of the
Decree -Law and Federal Law No. (7) of 2017.
5. Any tax return shall contain such details as the Authority may require in addition to at least
the following data :
a. The name, addre ss and TRN of the registrant ;
b. The tax period to which the tax return relates.
c. The date of the tax return submission.
d. The value of tax able supplies made by the person in the tax period and the output tax
charged.
e. The value of zero -rated taxable supplies made by the person in the tax period .
f. The value of exempt ed supplies made by the person in the tax period .
g. The value of any supplies subject to the provisions of Clauses (1) and (3) of article (48) of
the Decree -Law. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 67
h. The value of expenses incurr ed in respect of which the person seeks to recover the i nput
tax and the amount of the r efundable tax.
i. The total value of the due tax and the refundable tax for the tax period .
j. The payable tax for the tax period .
Part Fifteen
Refund of Excess Tax
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (65)
Refund of Excess Tax
If the tax able person has excess refundable tax for a tax period and submits a request to the
Authority by the means specified by the Authority to be repaid the amount of the excess, then the
Authority shall refund the amount to the tax able person within the timelines and according to
the procedures set out in Federal Law No. (7) o f 2017 on Tax Procedures.
Part Sixteen
Other Provisions Relating to Refund
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (66)
New Residence
1. If a person owns or acquires land in the State on which he builds, or authorizes the
construction of, his own residence, he shall be entitled to make a claim to the Authority to
refund the tax on the expenses of constructing the residence.
2. For the purposes of Clause (1) of this Article:
a. The claim may only be made by a natural person who is a national of the State.
b. The claim shall relate to a newly constructed building to be used exclusively as residence
of the person or his family. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 68
c. The claim may not be made in connection with a building which will not be used
exclusively as a residence by the person or his family, for example if it is to be used as a
hotel, guest hostel , hospital or for any other purpose not consistent with being use d as a
residence.
3. The refund claim in accordance with this Article shall be filed within six ( 6) months from the
date of completion of the newly built residence. For the purposes of this Clause, a ny newly
built residence shall be considered completed at t he earlier of the date the residence becomes
occupied, or the date when it is certified as completed by a competent authority in the State,
or as may otherwise be stipulated by the Authority.
4. The refund claim shall be submitted to the Authority in such ma nner and contain details as
determined by the Authority.
5. If the Authority refunds the tax in accordance with this Article, and following the receipt of
such refund the person breache s any condition stipulated in Paragraph (c) of Clause (2) of
this Article, the Authority may require the person to repay the amount of refunded tax.
6. The categories of expenses on which the person may claim a refund of tax under this Article
are:
a. Services provided by contractors, inclu ding services of builders, architects, engineers, and
other similar services necessary for the successful construction of the building .
b. Building materials, being goods of a type normally incorporated by builders in a
residential building or its site, but not including furniture or electrical appliances.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (67)
Visitors for Business Purposes
1. The Authority shall apply the VAT Refunds for Foreign Businesses Scheme to allow the refund
of tax on expenses incurred in the State by a foreign entity which has no business
establishment or fixed establishment in the State or the applying state , and is not registered
in the State . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 69
2. For the purpose s of this Article, the “foreign entity” means any person that practices a business
as defined in this Resolution and is registered as an establishment with the competent
authority in the state in which it is established.
3. Any foreign entity shall not be entitled to make a claim under the VAT Refunds for Forei gn
Businesses Scheme in the following cases:
a. If it makes supplies which have a place of supply in the State, unless the recipient of goods
or recipient of services is oblig ated to calculate the tax on such supplies in accordance
with Clause (1) of article (48) of the Decree -Law.
b. If the input tax is related to goods or services for which the tax may not be refundable in
accordance with article (53) of this Resolution .
c. If the foreign entity belongs to a state that does not permit VAT refund, in similar cases, to
entities that belong to the State.
4. A foreign tour operator shall not be entitled to make a claim under the VAT Refunds for
Foreign Businesses Scheme in connection with undertaking activities as a tour operator.
5. The claim for any refund shall be made on an electronic form provided by the Authority for
such purpose.
6. The claim form shall contain the particulars as may be required by the Authority , including:
a. Name and address of the foreign entity ;
b. Nature of activities of the foreign entity ;
c. Details of the registration of the foreign entity with the competent authority in the state
where it is established ;
d. Description of reasons for incurring expenses in the State ;
e. Description of activities carr ied out in the State ;
f. Details of expenses incurred in the State during the period of the claim.
7. The claim shall be accompanied by any documents or evidence as may be required by the
Authority.
8. The period of the claim shall be (12) calendar months. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 70
9. The minimum tax that may be claimed under the VAT Refunds for Foreign Businesses Scheme
shall be (AED 2,000 ) two thousand dirhams .
10. Notwithstanding the provisions of Clause (1) and Paragraph (c) of Clause (3) and Clause (8)
of this Article, the b usinesses resi ding in any GCC State that is not considered to be an applying
state according to the Decree -Law and this Resolution , may claim refund of tax incurred on
goods and services supplied to them in the State.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (68)
Tourist Visitors
1. The Cabinet may issue a resolution applying the Tax Refunds for Tourists Scheme
determining the following:
a. The effective date of the Scheme ;
b. The mechanism for tax refunds ;
c. Controls on claiming tax refunds ;
d. Processes for any verifications to be made under the Scheme ;
e. Any other conditions or procedures deemed necessary by the Cabinet for application of
the Scheme.
2. The following conditions shall apply to the Tax Refunds for Tourists Scheme:
a. The goods subject to the Tax Refunds for Tourists Scheme shall be supplied to an overseas
tourist who is in the State during the purchase of the goods from the supplier.
b. At the date of supply , the overseas tourist shall intend to depart from the State within
ninety (90) days from the date of supply , accompanied by the purchased goods .
c. The relevant goods shall be exported by the overseas tourist to a place outside the
applying state s within (3) months from the date of supply , subject to the conditions and
verification procedures as may be imposed by the Authority.
3. The “overseas tourist” means any natural person who is not resident in any of the applying
state s and is not a crew member on a flight or aircraft leaving an applying state . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 71
4. The Authority may publish a list of goods that shall not be subject to the Tax Refunds for
Tourists Scheme.
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (69)
Foreign Governments
1. If the t ax is incurred by a foreign gov ernment , international organization , diplomatic bod y and
mission, or by an official thereof, such foreign government, international organization ,
diplomatic bod y and mission shall be entitled to submit a claim on the form issued by the
Authority requesting repayment of the incurred tax.
2. The application of Clause (1) of this Article shall be subject to the following conditions:
a. Goods and services shall be acquired exclusively for official use.
b. The state in which the relevant foreign government, international organization , or
diplomatic body or mission is established or has its official seat shall exclude the same
type of bodies of the State from the any tax burden s in such state .
c. The refund claim shall be consistent with the terms of any international treaty or other
agreemen t concerning the tax liability of such foreign government, international
organization , or diplomatic body or mission.
d. The official of a foreign government, international organization , or diplomatic body or
mission who benefits from the refund shall not ho ld the UAE nationality or have a
residence visa under the sponsorship of an entity other than the foreign government,
international organization , or diplomatic body or mission itself, and shall not engage in
any business in the State.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 72
Part Seventeen
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (70)
Transitional Provisions
1. For the purposes of Paragraph (e) of Clause (1) of article (80) of the Decree -Law, “acceptance
by the recipient of goods ” means the stage where the recipient of goods considers that the
supplier has fulfilled his obligations towards him.
2. In case of applying the provisions of Clause (1) of article (80) of the Decree -Law, the date of
supply shall be the date of entry into force of the Decree -Law only in respect of the amounts
of considerati on received or specified in the invoice issued before the entry into force of the
Decree -Law.
3. In case of Clause (3) of article (80) of the Decree -Law, the supply shall be deemed to have
been made in accordance with the following provisions:
a. For supplies to which the provisions of article (25) of the Decree -Law appl y, the date of
supply shall be determined in accordance with Clauses (1) to (6) of the said Article.
b. For supplies to which the provisions of article (26) of the Decree -Law apply , the supply
shall be deemed to be made in accordance with the provisions of the said Article.
4. For the purpose s of Clause (3) of this Article, if the date of supply in respect of a supply of
goods or services is before the entry into force of the Decree -Law , part of the supply is made
before the date of entry into force of the Decree -Law and another part thereof is made after
such date , the date of supply shall be treated as taking place after the entry into force of the
Decree -Law for such part of the supply actually taking place after the said date.
5. Any payment of consideration made before the date of entry into force of the Decree -Law
shall be dis regarded to determ ine whether a supply takes place before such date if, or to the
extent that, it appears to the Authority that it would not have been so made but for the tax.
6. In case of Clause (3) of article (80) of the Decree -Law, the consideration shal l be treated as
exclusive of the t ax and the recipient of goods or recipient of services shall be obligated to pay
the VAT plus the consideration if all of the following conditions are met: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 73
a. If the recipient of goods or recipient of services is a registrant .
b. If the recipient of goods or recipient of services has the right to recover the i nput tax
incurred on the supply either in full or in part.
7. Clause (6) of this Article shall apply only if the supplier requests , prior to the date of entry into
force of the Decree -Law, from the recipient of goods or recipient of services to confirm the
following information :
a. Whether the recipient of goods or recipient of services is registrant or is expect ed to be a
registrant on the date of entry into force of the Decree -Law.
b. The extent to which the recipient of goods or recipient of services expects to be able to
recover the t ax incurred on such supply.
8. The recipient of goods or recipient of services shall, w ithin (20) working day s as of the
date of receiving the request for information referred to in Clause (7) of this Article,
respond to the supplier in writing and provide the same with the requested information.
9. The supplier may rely on the information provided in accordance with Claus e (8) of this
Article for the purposes of determining the tax treatment of the supply. If the recipient of
goods or recipient of services intentionally provides false information that results in that the
supplier has to treat the consideration as inclusive of the t ax, the recipient of goods or
recipient of services shall not be entitled to reclaim the input tax on such supply.
10. In case that the recipient of goods or recipient of services fails to provide the information in
accordanc e with Clause (8) of this Article, the supplier may treat the c onsideration in respect
of the supply as exclusive of the tax and request the recipient of goods or recipient of services
to pay the t ax.
11. The supplier and the recipient of goods or recipient of services shall keep the records of the
request referred to in Clause (7) of this Article and the information provided in accordance
with Clause (8) of this Article.
12. For the purposes of Clause (6) of this Article, if the recipient of goods or recipient of services
makes sure that he is able only to recover the i nput tax in part, the consideration shall be
treated as exclusive of the t ax only to the extent that relates to the refundable input tax Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 74
percentage that the recipient of goods or recipient of services discloses to the supplier under
Clause (8), and the remaining portion of the consideration relating to the supply shall be
treated as inclusive of the t ax.
13. In all cases, the supplier shall remain liable for calculat ing the t ax and pa ying it to the
Authority.
14. If a taxable supply is treated as a supply made periodically or successively, the t ax shall not be
charged on the portion of the consideration related to a supply made before the date of entry
into force of the Decree -Law.
15. Any GCC State shall be treated as an applying state in accordance with the provisions of the
Decree -Law and this Resolution if the following conditions are met:
a. If such GCC State treats the State similarly as an applying state in its issued legislation.
b. Full compliance with the provisions of the Unified Agreement for Value Added Tax (VAT)
of the Cooperation Council for the Arab States of the Gulf (GCC).
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (71)
Requirements for Record -Keeping
1. Subject to Clause (2) of this Article, any records required to be kept in accordance with the
provisions of the Decree -Law shall comply with the time periods, controls, and conditions for
keeping records provided for in Federal Law No. (7) of 2017 on Tax P rocedures and its
Executive Regulations.
2. Any records related to a real property required to be kept shall be held for a period of (15)
years following the end of the tax period to which such records relate.
3. If a government agency is listed in the Cabinet resolution under Clause (2) of article (72) of
the Decree -Law, such government agency may:
a. Reject the Authority’s request to take any records or cop ies there of from the premises of
the government agency ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 75
b. Establish controls for the access of the Authority’s employees to the records and premises
of the government agency .
4. If the Authority holds any records of a government agency listed by the Cabinet under Clause
(2) of article (72) of the Decree -Law, the records shall be kept in such manner th at they can
be accessed only by the Authority ’s employees expressly authorized to review the records of
such government agency .
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (72)
Keeping Records of Supplies Completed
1. The records of all goods and services supplied by or for the benefit of the taxable person, shall
be kept and shall show the goods, services, suppliers and their agents in sufficient detail, so
as to enable the Authority to easily identify such goods and s ervices, suppliers and agents .
2. Subject to the provisions of article (78) of the Decree -Law, the taxable person that makes any
taxable supply of goods or services in the State shall keep the transaction's records to prove
the emirate wherein the fixed establishment related to such supply is located .
3. Notwithstanding the provisions of Clause (2) above, if the taxable person that makes any
taxable supply of goods or services does not have a fixed establishment in the State, the
following shall apply:
a. In the event that it has a headquarters in the State, it shall keep records of the transaction
to prove the emirate in which the headquarters is located.
b. In the event that it does not have a headquarters in the State, it shall keep records of the
transaction t o prove the emirate in which the supply is received.
4. Notwithstanding what is stated in Clauses (2) and (3) of this Article, in the event that the value
of taxable supplies made by the taxable person through electronic commerce exceeds the
amount of (AED 10 0,000,000) one hundred million dirhams During the calendar year, it shall
keep records of the transaction to prove the emirate in which the supply is received for the
period specified in Clause (6) of this Article. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 76
5. For the purposes of Clause (4) of this Ar ticle, electronic commerce refers to the transaction
involving the sale of goods or services through electronic means, an electronic platform, a
store on social media, or electronic applications in accordance with criteria and conditions
specified by the M inister.
6. For the purpose of implementing the provisions of Clause (4) of this Article, the provisions
relating to taxable supplies via electronic commerce shall apply to each taxable person as
follows:
a. Starting from the first tax period that begins on or after 1 July 2023, and for a period of 18
months for the taxable person whose taxable supplies made via electronic commerce has
exceeded the limit stipulated in Clause (4) of this Article during the cale ndar year ending
on December 31, 2022.
b. For a period of two years starting from the first tax period of the calendar year that begins
after the date of exceeding the taxable supplies made by the taxable person through
electronic commerce, the limit stipulat ed in Clause (4) of this article.
Part Eighteen
Final Provisions
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (73)
The Authority shall be competent to issue clarifications and directives regarding the application
of the provisions of this Resolution .
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (74)
Repeal of Conflicting Provisions
Any provision inconsistent or discrepant with the provisions of this Resolution is hereby repealed.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 77
|
tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (75)
Publishing and Enforcement
This Resolution shall be published in the Official Gazette and shall enter into force as of 1st
January 2018 at the earlier of the following :
1. The time of opening of the business on 1 January 2018 ; or
2. 7 am on 1st January 2018.
Mohammad bin Rashid Al Maktoum
Prime Min ister
Issued by us:
On: 7 Rabi al -Awwal 1439 A.H.
Corresponding to: 26 November 2017 AD. |
tax | The Cabinet Resolution No. (25) of 2018 Concerning Application of VAT for Gold and Diamond Among Registered Dealers in the State | Article (1)
Definitions
In application of provisions of this Resolution, the following words and phrases shall
have the meanings assigned to th em, unless the context indicates otherwise:
Authority : The Federal Tax Authority.
Tax : Value Added Tax (VAT).
Taxable Person : Any natural or legal person that is registered or is
supposed to be registered for tax purposes
subject to Federal Decree -law No. (8) of 2017 .
Tax Registration : A registration procedure taken by the taxable
person or his legal representative for tax purposes
of the Authority .
Items : Gold, diamond and any of its basic products of
gold and diamond . Cabinet Resolution of 20 18 Concerning the Application of VAT for Gold and Diamond Among
Registered Dealers in the State 2
Registered : The taxable who acquired a tax registration
number and is licensed by the competent
governmental authority to practice any business
relevant to the items .
Supplier : The registered who supplies items in the State .
Receiver : The person for whom the items are supplied .
Tax : The tax that is calculated and imposed subject to
Federal Decree -law No. (8) of 2017 .
|
tax | The Cabinet Resolution No. (25) of 2018 Concerning Application of VAT for Gold and Diamond Among Registered Dealers in the State | Article (2)
1. When a supplier supplies the items to a receiver that is registered in the State, and
the purpose of the receiver is to resell the items or to reuse it to produce or
manufacture any of these items, the following rules shall apply:
a. A supplier shall not be responsible for calculating the tax relevant to items
supply and shall not record it in its tax return if the registered receiver
recognises in writing the following:
1. Acquiring those items is in order to resell, reuse it in producing or
manufacturing any of such items .
2. It is registered on the date of supply.
3. The receiver shall calculate the tax on the value of the items supplied.
b. The receiver of the items shall calculate the tax on the value of the items
supplied and shall be liable for all tax obligations caused by that supply and the
calculation of the due tax.
2. Provisions stated in clause (1) of this article shall not be applicable in any of the
following cases :
a. If the supplier knows or is assumed to know that the receiver is not registered
on the date of supply .
b. If the supplier did not confirm that the receiver is registered at the Authority
pursuant to approved channels and details provided in the tax return . Cabinet Resolution of 20 18 Concerning the Application of VAT for Gold and Diamond Among
Registered Dealers in the State 3
c. If the taxable supply is taxed for a zero -percentage subject to clause (1) or (8)
of article (45) of the Federal Decree -Law No. (8) of 2017.
3. If the supplier knows or is assumed to know that the rece iver is not registered for
due tax purposes and associated penalties relevant to supply.
|
tax | The Cabinet Resolution No. (25) of 2018 Concerning Application of VAT for Gold and Diamond Among Registered Dealers in the State | Article (3)
Issu ing the Executive Resolutions
The Minister of Finance shall issue the necessary Resolutions to implement the
provisions of this decision.
|
tax | The Cabinet Resolution No. (25) of 2018 Concerning Application of VAT for Gold and Diamond Among Registered Dealers in the State | Article (4)
Enforcement and Publication
This Resolution shall come into force as of 1/6/2018 and shall be published in the
Official Gazette.
Mohammed bin Rashid Al Maktoum
Prime Minister
Issued by us:
On: 6 Ramadan 1439 A .H.
Corresponding to: 22 May 2018 AD |
tax | Cabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax | Article (1)
Definitions
In applying the provisions of this Resolution, the following words and phrases shall have the
meanings indicated opposite each of them, unless otherwise stated:
State : The United Arab Emirates .
Ministry : Ministry of Finance .
Minister : Minister of Finance .
Authority : Federal Tax Authority .
Person : Any natural or legal person .
Taxpayer : A person who is subject to Corporate Tax in a country under the
Corporate Tax law .
Corporate Tax Law : Federal Decree -Law No. (47) of 2022 Concerning the Corporate Tax.
Corporate Tax : The tax imposed under the Corporate Tax Law on legal persons and
business income .
Taxable Income : Income subject to the Corporate Tax under the Corporate Tax Law . Cabinet Resolution of 20 22 Determining the Amount of Annual Income Subject to the Corporate Tax 2
Tax Period : The period for which the tax return must be submitted .
Tax Return : Information provided to the Authority for Corporate Tax purposes in
accordance with the forms and procedures specified by the
Authority, including any schedules or attachments thereof, including
any amendment thereto .
Business : Any activity practiced regularly, continuously and independently by
any person and in any place, such as industrial, commerc ial,
agricultural, vocational, professional, service, excavation activities,
or any other activity related to the use of tangible or intangible
property .
Business Activity : Any transaction, activity, series of transactions, or series of activities
carried out by a person in the course of his business .
|
tax | Cabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax | Article (2)
Taxable Income Subject to the Corporate Tax at the Rate of (0%) Zero per Cent
1. For the purposes of Paragraph ( a) of Clause (1) of article (3) of the Corporate Tax Law, the part
of the Taxable Income of the Taxpayer that does not exceed the amount of ( AED 375,000) three
hundred and seventy -five thousand Emirati dirham s is subject to Corporate Tax at a zero rate
(0%) per cent in the tax period. This is regardless of whether the Taxpayer carries on several
businesses or busines s activities in that tax period .
2. If the Authority is acknowledged that one or more persons have separated their business or
business activity in a fictitious manner, the Taxable Income of all their business or business
activity is subject to Corporate Tax at the rate of (0%) zero per cent in the tax period with an
amount exceeding ( AED 375,000) three hundred and seventy -five th ousand Emirati dirham s,
this shall be deemed as an arrangement to obtain a Corporate Tax -related advantage in
accordance with Clause (1) of article (50) of the Corporate Tax Law .
3. For the purpose of the Authority verifying whether two or more persons have s puriously
separated their business or business activity, it shall consider whether the arrangement is
entered into for a legitimate commercial purpose. Also, whether the persons substantially carry
on the same busi ness or business activity with c onsidering all relevant facts and circumstances,
including but not limited to their financial, economic and organis ational ties.
Cabinet Resolution of 20 22 Determining the Amount of Annual Income Subject to the Corporate Tax 3
|
tax | Cabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax | Article (3)
Income Subject to the Corporate Tax at the Rate of (9%) Nine per Cent
For the purposes of paragraph (b) of Clause (1) of article (3) of the Corporate Tax Law, the Taxable
Income of the Taxpayer that exceeds the amount of ( AED 375,000) three hundred and seventy -five
thousand Emirati dirham s is subject to Corporate Tax at the rate of (9) nine per cent in the tax period
of relevance.
|
tax | Cabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax | Article (4)
Executive Resolutions
The Minister of Finance shall issue the necessary decisions to implement the provisions of this
decision.
|
tax | Cabinet Resolution No. (116) of 2022 Concerning the Determination of the Amount of Annual Income Subject to Corporate Tax | Article (5)
Publication and Enforcement
This Resolution shall be published in the Official Gazette, and shall come into force after (15) fifteen
days from the date of its publication.
Mohammed bin Rashed Al -Maktoom
The Prime Minister
Issued by us:
On: 06, Jumada II , 1444 A.H.
Corresponding to : 30 December 2022 AD |
tax | Cabinet Resolution No. (55) of 2019 Concerning the Excise Price of Tobacco Products | Article (1)
Definitions
In the application of the provisions of this Resolution, the following words and phrases shall have
the meanings assigned against each, unless the text implies otherwise:
Excise Price : In accordance with the definition stipulated in article (1 3) of
Cabinet Resolution No. (52) of 2019 referred to above.
Water Pipe Tobacco : Tobacco intended for smoking using a water pipe and made of a
mixture of tobacco and glycerin, even though it contains aromatic
oils or extracts or molasses or sugar, and ev en if fruits flavors were
added to it.
Cigarettes rolls : All cigarette rolls whether regular or electronically heated.
Cabinet Resolution of 20 19 Concerning the Ex cise Price of Tobacco Products 2
|
tax | Cabinet Resolution No. (55) of 2019 Concerning the Excise Price of Tobacco Products | Article (2)
Excise Price for Tobacco Products
The Excise Price shall be determined in accordance with article (13) of Cabinet Resolution No.
(52) of 2019 referred to above, provided that it shall not be less than:
a. (0.4) Dirham for every cigarette roll.
b. (0.1) Dirham for each gram of water pipe tobacco and ready to use tobacco and other similar
products.
|
tax | Cabinet Resolution No. (55) of 2019 Concerning the Excise Price of Tobacco Products | Article (3)
Enforc ing Provision of this Resolution
The Minister of Finance shall issue a resolution determining the date of enforcing this Resolution
provided that it shall be before 01 January 2020.
|
tax | Cabinet Resolution No. (55) of 2019 Concerning the Excise Price of Tobacco Products | Article (4)
Publication
This Resolution shall be published in the Officia l Gazette.
Mohammed bin Rashid Al -Maktoum
Prime Minister
Issued by us:
On: 03 Thu Al -Hijjah 1440 A .H.
Corresponding to: 04 August 2019 AD |
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (1)
Definitions
In application of the provisions of this Resolution, the following words and phrases shall have the
meanings assigned to each of them, unless the context otherwise requires:
State : United Arab Emirates.
Minister : Minister of Finance.
FTA : The Federal Tax Authority.
Person : Natural or legal person.
Tax Resident : The person residing in the State as specified in Articles (3) and (4) of this
Resolution.
Business : Any activity that is practised regularly, continuously, and independently by
any person, such as industrial, commercial, agricultural, professional, craft
or service activity, excavation activities, or activities related to the use of
tangible or intangible property. Cabinet Resolution of 20 22 Determining the Tax Residence 2
Residence
Permit : The permit or authorisation issued by the competent authorities in the
State to grant a natural person the right to reside or work within the
territory of the State, and it does not include any temporary permit to enter
the State for a specified period of time for the purposes of temporary travel,
tourism, sports, treatment or any other purpose.
Permanent
Residence : The place located in the State and available to the natural person at all
times.
International
Agreement : Any bilateral or multilateral agreement or any other agreement to which
the State is a party, and which has been ratified by the parties.
Tax
Residence
Certificate : A certificate issued by the FTA proving that the person is a Tax Resident in
the State.
Tax : Every feder al tax imposed under the Tax Law of which management,
collection and implementation is entrusted to the FTA.
Tax Law : Any federal law under which a tax is imposed.
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (2)
Objectives of the Resolution
This Resolution aims to define the requirements and conditions for determining a person as a Tax
Resident in the State.
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (3)
Legal Person
A legal person is considered a Tax Resident in the State in any of the following two cases:
1. If it was established, formed, or recognised in accor dance with the legislation in force in the
State, not including the branch that is registered by a foreign legal person in the State.
2. If it is considered a Tax Resident under the applicable Tax Law in the State.
Cabinet Resolution of 20 22 Determining the Tax Residence 3
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (4)
Natural Person
A natural perso n is considered a Tax Resident in the State if any of the following conditions are
met:
1. If his usual or main place of residence and the centre of his financial and personal interests
are in the State or if it fulfils the conditions and criteria specified b y a decision issued by the
Minister.
2. If he has been physically present in the State for a period of one hundred and eighty -three
days (183) or more, during the relevant twelve (12) consecutive month period.
3. If he has been physically present in the State fo r a period of ninety (90) days or more, during
the relevant twelve (12) consecutive months, and holds the nationality of the State, a valid
residence permit in the State or the nationality of any of the member states of the Gulf
Cooperation Council, and me ets any of the following:
a. Having a permanent place of residence in the State.
b. Practising a job or business in the State.
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (5)
Tax Residence Certificate
1. The person who is considered as a Tax Resident in the State in accordance with the provisions
of Articles (3) or (4) of this Resolution may submit an application to the FTA, for the purpose
of issuing his Tax Residence Certificate.
2. The application referred to in Clause (1) of this Article shall be submitted in accordance with
the form and manner dete rmined by the FTA.
3. If the FTA is satisfied that the applicant meets the conditions specified in Articles (3) or (4) of
this Resolution and that the application is submitted in accordance with Clause (2) of this
Article, it may approve the application and issue a Tax Residence Certificate.
Cabinet Resolution of 20 22 Determining the Tax Residence 4
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (6)
International Agreements
1. If any international agreement specifies certain conditions for determining Tax Residence, the
provisions of that international agreement regarding the determination of Tax Residence
shall apply for the purposes of that international agreement.
2. The Minister shall issue a decision specifying the form and method of issuing certificates to
determine the Tax Residence for the purposes of the international agr eement.
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (7)
FTA's Powers and Cooperation Therewith
1. The FTA may request all information, data and documents related to any person from all
government agencies in the State for the purposes of implementing the provisions of this
Resolution.
2. All gove rnment agencies in the State must fully cooperate with the FTA for the purposes of
implementing the provisions of this Resolution, including providing the FTA with all
information, data and documents related to any person as required by the FTA.
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (8)
Executive Resolutions
1. The Minister shall issue the necessary decisions to determine the conditions, controls, and
criteria for the implementation of any of the provisions of this Resolution.
2. The FTA shall be responsible for issuing clarifications and directives for the implementation
of any of the provisions of this Resolution.
Cabinet Resolution of 20 22 Determining the Tax Residence 5
|
tax | Cabinet Resolution No. (85) of 2022 Concerning Determining the Tax Residence | Article (9)
Resolution Publication and Entry into Force
This Resolution shall be published in the Official Gazette and shall enter into force as of 01 Marc h
2023.
Mohammed bin Rashid Al -Maktoum
Prime Minister
Issued by Us:
On: 06 Safar 1444 AH
Corresponding to: 02 September 2022 AD |
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (1)
Definitions
For the purpose of applying the provisions of this Decree -Law, the following words and
expressions shall have the meanings assigned thereto respectively, unless the context requires otherwise:
State : The United Arab Emirates.
Minister : The Minister of Finance.
Authority : The Federal Tax Authority.
Value -Added
Tax (VAT) : A tax levied on the importation and supply of goods and services at every stage of production and distribution, including the
deemed supply.
Tax : The Value -Added Tax.
GCC States : All the states which are full members of the Cooperation Council for the Arab States of the Gulf, in accordance with the GCC
Charter.
Applying
States : The GCC States which apply the Tax law under a legislative
instrument issued thereby, and as defined by the Executive
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 3
Regulations of this Decree -Law.
Goods : Tangible properties which can be supplied, including real
property, water and all types of energy, as defined by the
Executive Regulations of this Decree -Law.
Services : Anything, other than Goods, which can be supplied.
Importation : Brining Goods into the State from abroad, or receiving Services
from abroad.
Relevant
Goods : Goods imported and not exempted from the Tax if supplied in the State.
Relevant
Services : Services imported, whose place of supply is in the State, and not exempted from the Tax if supplied in the State.
Person : A natural or legal person.
Taxable
Person : Each Person that is, or ought to be, registered for the tax purposes under this Decree -Law.
Taxpayer : Any Person that is obligated to pay the Tax in the State, pursuant
to this Decree -Law, whether such Person is a taxable Person or an
end consumer.
Tax Registration : A procedure under which the Taxable Person or the legal
representative thereof registers for the Tax purposes at the Authority.
Tax Registration Number
(TRN) : A unique number assigned by the Authority to each Person
registered for the Tax purposes.
Registrant : A Taxable Person holding a Tax Registration Number.
Recipient of
Goods : The Person to whom the Goods are supplied or imported.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 4
Recipient of
Services : The person to whom the Services are supplied or imported.
Importer : In relation to the importation of Goods, an importer is the Person who acts as the importer of Goods on the date of Importation for the purposes of customs clearance. In relation to the importation
of Services, it means the recipient of such services.
Taxable
Trader : A Taxable Person in the Applying States, whose main activity is
the distribution of water and all types of energy, as defined by the Executive Regulations of this Decree -Law.
Tax Return : The information and data specified for the Tax purposes provided
by the Taxable Person in accordance with the form prepared by
the Authority.
Consideratio n : Anything that has been received or expected to be received for the supply of Goods or Services, whether cash payments or any
other forms recognized as compensation.
Business : Any activity that is practiced on a regular, ongoing and
independent basis by any Person and in any place, such as
industrial, commercial, agricultural, professional, handicraft or
service activity, excavation activities or any activity related to the
use of tangible or intangible properties.
Exempted
Supply : The supply of Goods or Services for a Consideration during the practice of the Business within the State, which shall not be taxed
and the input tax levied on may not be refunded except under the
provisions of this Decree -Law.
Taxable
Supply : The supply of Goods or Services for a Consideration during the practice of the Business by any Person within the State, not
including the Exempted Supply.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 5
Deemed
Supply : All that is regarded as a supply and treated as a Taxable Supply, in accordance with the cases set forth in this Decree -Law.
Input Tax : The Tax paid or payable by a Person when Goods or Services are supplied to, or importation is made, by such Person.
Output Tax : The Tax levied on the Taxable Supply and on any supply which is
deemed Taxable Supply.
Refundable
Tax : Amounts paid that may be refunded by the Authority to the Taxpayer under the provisions of this Decree -Law.
Due Tax : The Tax that is calculated and levied under the provisions of this
Decree- Law.
Payable Tax : The Tax which becomes due to be paid to the Authority.
Tax Period : A specific period for which the Payable Tax shall be calculated
and paid.
Tax Invoice : A written or electronic document in which any Taxable Supply
and its details are recorded
Tax Credit Note : A written or electronic document in which any amendment to reduce or cancel a Taxable Supply and its details are recorded.
Government
Agencies : Ministries, government departments and entities and federal and local public authorities and institutions in the State, or any other
entities receiving the treatment prescribed for Government
Agencies, in accordance with the resolutions issued by the
Cabinet for the purposes of applying the provisions of this
Decree- Law.
Charities : Non -governmental, non- profit organizations of public welfare,
which are determined by a Cabinet resolution to be issued upon
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 6
the proposal of the Minister.
Relevant
Charitable
Activity : A non -profit activity generating no benefits for any owner,
member or shareholder of a Charity, and is performed by the Charity within its purposes or objects to carry out a charitable activity in the State or to promote such Charity, as approved by
the relevant authorities, or pursuant to its articles of
incorporation as a Charity under legislation, decree or federal or
local resolution, or based on its license, to carry out a charitable
activity through an authority granting such licenses on behalf of
the federal government or the Emirate's government.
Mandatory Registration
Threshold : An amount specified in the Executive Regulations of this
Decree- Law and if the value of Taxable Supplies exceeds or is
expected to exceed such amount, the supplier shall apply for the Tax Registration
Voluntary
Registration
Threshold : An amount specified in the Executive Regulations of this
Decree- Law and if the value of Taxable Supplies or taxable
expenses exceeds or is expected to exceed such amount, the
supplier may apply for the Tax Registration.
Transport -Rel
ated Services : Cargo transport, packaging and sealing; preparation of customs
documents; container management services and loading,
unloading, storage and movement of goods, or any other services
that are closely related or necessary for the completion of
transport services.
Business Establishment : The place where the Business is legally established in a state, in accordance with the establishment resolution, and where
important management decisions are taken or the functions of
the central administration are carried out.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 7
Fixed
Establishment : Any fixed place of Business other than the Business Establishment, through which the Person conducts its Business
on a regular or permanent basis and which has the sufficient
human and technical resources necessary to enable it to supply or receive Goods or Services, including the Person's branches.
Place of
Residence : The place where a Person has a Business Establishment or Fixed Establishment, in accordance with the provisions of this
Decree- Law.
Non -Resident
Person : Any person that has no Business Establishment or Fixed
Establishment in the State and usually does not reside therein.
Related Parties : Two or more Persons that are not economically, financially or organizationally separated, where one of them can control the
others either by law, shareholding or voting rights.
Customs Legislation : Federal and local legislation regulating customs in the State.
Designated
Area : Any area identified by a Cabinet Resolution, upon the proposal of the Minister, as a Designated Area for the purposes of this
Decree- Law.
Exportation : Taking Goods outside the State or providing Services to a person whose Business Establishment or Fixed Establishment is outside
the State.
Voucher : Any instrument entitling the holder thereof to get access to
Goods or Services against the value stated thereon or enclosed therein, or to obtain a discount on the price of Goods or Services,
and it does not include postage stamps issued by the Emirates
Post Group.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 8
Activities
Performed in a
Sovereign
Capacity : Activities performed by Government Agencies in their sole capacity, with or without a Consideration.
Capital Assets : Business assets designated for long -term use.
Capital Assets
Scheme : A scheme whereby the input tax initially refunded is adjusted based on the actual use during a specific period.
Administrative Fines : Amounts to be imposed on the Person by the Authority for
violating the provisions of this Decree- Law and Federal Law No.
(7) of 2017, on Tax Procedures.
Administrative Fine
Assessment : A decision issued by the Authority on due administrative fines.
Excise Tax : A tax levied by virtue of a law on particular Goods.
Tax Group : Two or more Persons registered at the Authority as a single
Taxable Person for the tax purposes, in accordance with the
provisions of this Decree -Law.
Pure Hydrocarbons : Any type of various pure compounds of a chemical formula composed only of hydrogen and carbon (Cx Hy).
Tax Evasion : The person's use of illegal means which cause reducing the
amount of the Due Tax, the non- payment thereof, or the refund
of a Tax that such Person is not entitled to refund.
Tax Audit : An action made by the Authority to audit business records or any
information, data or commodities related to a Person so as to
verify the fulfillment of their obligations, pursuant to the
provisions of this Decree -Law or the Tax Procedures Law.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 9
Tax
Assessment : Means the Tax Assessment as defined in the Tax Procedures Law.
Voluntary Disclosure : A form prepared by the Authority whereby the Taxpayer notifies the Authority of any errors or omissions in the Tax Return, Tax Assessment or tax refund application, pursuant to the provisions
of the Tax Procedures Law.
Tax
Procedures
Law : Federal Law No. (7) of 2017 , on Tax Procedures, as amended, and
any federal law superseding the same.
Part Two
Scope and Rate of the Tax
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (2)
Scope of the Tax
The Tax shall be levied on:
1. Every taxable supply and deemed supply carried out by the taxable person.
2. Importation of the relevant goods except for what is specified by the Executive
Regulations of this Decree -Law.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (3)
Rate of the Tax
Subject to the provisions of Part VI of this Decree -Law, the standard rate of the tax to be
levied on any supply or importation shall be (5%) in accordance with the provisions of
article (2) hereof based on the value of the supply or importation specified in accordance
with the provisions of this Decree -Law.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 10
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (4)
Responsibility for the Tax
The responsibility for the levied tax shall fall on the following:
1. The taxable person that makes any supply set forth in Clause (1) of article (2) of this
Decree- Law;
2. The importer of relevant goods;
3. The registrant acquiring goods in accordance with the provisions of Clause (3) of Article
(48) hereof.
Part Three
Supply
Chapter One
Supply of Goods and Services
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (5)
Supply of Goods
The following shall be considered a supply of Goods:
1. Transfer of ownership of the Goods or the right to dispose thereof to another Person, as
determined by the Executive Regulations of this Decree -Law.
2. Concluding an agreement between two or more parties, which entails the transfer of
Goods later, under the conditions laid down in the Executive Regulations of this
Decree- Law.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (6)
Supply of Services
Each supply not considered a supply of goods shal l be deemed as a supply of services,
including any provision of services in accordance with what is determined in the Executive
Regulations of this Decree -Law.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 11
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (7)
Supply in Special Cases
Notwithstanding the provisions contained in Articles (5) and (6) of this Decree -Law, the
following shall not be deemed as a supply:
1. Selling or issuing any Voucher, unless the received Consideration exceeds its declared
cash value, as determined by the Executive Regulations of this Decree -Law;
2. Transferring Business or independent part thereof from a Person to a Taxable Person to
continue such transferred Business; and
3. Any other supply identified by the Executive Regulations of this Decree -Law
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (8)
Supply Composed of more than one Component
The Executive Regulations of this Decree -Law shall define the conditions of the transaction
of the supply composed of more than one component for a single price, whether such
components are goods and/or services.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (9)
Supply by an Agent
1. Where goods and services are supplied by an agent acting on behalf of a principal, the supply shall be deemed to be made by the principal and for his benefit.
2. Where goods and services are supplied through an agent acting in his own name, the supply shall be treated as a direct supply by the agent and for his benefit.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (10)
Supply by Government Agencies
1. The government agency shall be deemed as making a supply in the course of business in the following cases:
a. If its activities are performed in a non -sovereign capacity.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 12
b. If its activities are in competition with the private sector.
2. The Cabinet shall issue a resolution, upon the proposal of the Minister, which shall
determine the government agencies, their activities considered to be performed in a
sovereign capacity and the cases where their activities are considered not in competition with the private sector.
Chapter Two
Deemed Supply
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (11)
Cases of Deemed Supply
The following cases shall be regarded as deemed supply:
1. Supply of goods or services forming the whole assets of the taxable person or part thereof, but such goods or services no longer form part of the assets, provided that the supply is made for no consideration.
2. Transfer of goods forming part of the business assets of a taxable person in the State to
his business in one of the applying states, or from the taxable person's business in an
applying state to his business in the State, except in the case where such transfer is:
a. deemed temporary pursuant to the Customs Legislation.
b. made as part of another taxable supply of such goods.
3. Supply of goods or services for which input tax may be recovered but they have been
used in whole or in part for purposes other than the business, and such supply shall be
regarded as deemed supply within the limits of use for non- business purposes.
4. Goods and services owned by the taxable person at the date of cancellation of tax
registration.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (12)
Exceptions from the Deemed Supply
The supply shall not be regarded as deemed supply in the following cases:
1. If the amount of the input tax for the related goods and services is not refunded.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 13
2. If the supply is an exempted supply.
3. If the refunded input tax on the goods and services is adjusted in accordance with the
Capital Assets Scheme.
4. If the value of the supply of goods, for each recipient during the period of twelve months,
does not exceed the amount determined by the Executive Regulations of this
Decree- Law and the supply is intended to use such goods as samples or commercial
gifts.
5. If the total output tax payable for all the deemed supplies per person for the period of
twelve months is less than the amount specified by the Executive Regulations of this
Decree- Law.
Part Four
Tax Registration and Cancellation thereof
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (13)
Mandatory Tax Registration
1. Every Person who has a Place of Residence in the State or in one of the Applying States shall register for the Tax if:
a. The value of the supplies set forth in article (19) hereunder exceeds, during the previous (12) twelve -month period, the Mandatory Registration Threshold; or
b. It is expected that the value of the supplies set forth in article (19) hereunder will
exceed the Mandatory Registration Threshold during the next (30) thirty days.
2. Every Person who does not have a Place of Residence in the State or in one of the
Applying States shall register for the Tax if such Person makes supplies of Goods or Services and no other Person obligated to pay the Due Tax for such supplies is in the State.
3. The Executive Regulations of this Decree -Law shall determine the time limits during
which the Person shall notify the Authority of the necessity to register for the Tax and
the effective date of the Tax Registration.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 14
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (14)
Tax Group
1. Two or more persons practicing the business may apply for the tax registration as a tax
group if the following conditions are satisfied:
a. Each of them shall have a business establishment or fixed establishment in the State.
b. The relevant persons shall be related parties.
c. One or more persons practicing the business in a partnership shall control the others.
2. The Executive Regulations of this Decree -Law shall define the cases where the Authority
may reject the application for registering the tax group.
3. No person who practices the business shall have more than one Tax Registration
Number, unless otherwise provided for in the Executive Regulations.
4. If the related parties fail to apply for the tax registration as a tax group in accordance
with Clause (1) of this Article, the Authority may assess their relation based on their
practice of the business on an economic, financial and organizational basis and register
the same as a tax group if it verifies their relation in accordance with the controls and
conditions established by the Executive Regulations of this Decree -Law.
5. The Authority may cancel the registration of the tax group under the provisions
contained in this Article, in accordance with the conditions laid down in the Executive
Regulations of this Decree -Law.
6. The Authority may make amendments to those registered as a tax group by adding or
removing some persons, upon request of the taxable person or in accordance with the
cases set out in the Executive Regulations.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (15)
Exemption from the Registration
1. The Authority may exempt the Taxable Person, whether registered or unregistered, from
the Tax Registration, upon their request, if their supplies are zero -rated only.
2. If any changes to the business of the Taxable Person who is exempted from the Tax Registration occur, pursuant to Clause (1) above, and lead, or would lead, to the
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 15
elimination of the reason based on which they have been exempted, they shall notify the
Authority of such changes within the time limits and according to the procedures
identified by the Executive Regulations of this Decree -Law.
3. The Authority shall be entitled to collect the Due Tax and the Administrative Fines for
the period of exemption if it found that the Taxable Person is not entitled to be
exempted.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (16)
Tax Registration of Government Agencies
Government agencies to be determined by the Cabinet resolution referred to in Clause (2) of
article (10) of this Decree -Law shall apply for the tax registration and such registration may
not be cancelled except under a Cabinet resolution to be issued upon the proposal of the
Minister.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (17)
Voluntary Registration
Any person who is not liable to be registered in accordance with the provisions of this Part
may apply for the tax registration voluntarily in the following cases:
1. If such person proves, at the end of any given month, that the value of supplies set forth
in article (19) hereof or the taxable expenses incurred during the previous twelve
months has exceeded the Voluntary Registration Threshold.
2. If it is expected, at any time, that the value of supplies set forth in article (19) hereof or
the taxable expenses to be incurred during the next thirty days will exceed the Voluntary
Registration Threshold.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (18)
Tax Registration for Non -Residents
A non -resident person may not take the value of goods and services imported to the State
for the purpose of determining whether he is entitled to be registered if the calculation of tax
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 16
for such goods and services is the responsibility of the importer in accordance with the
provisions of Clause (1) of article (48) of this Decree -Law.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (19)
Calculating the Tax Registration Threshold
For the purpose of determining whether a person exceeds the Mandatory Registration Threshold and the Voluntary Registration Threshold, the total value of the following shall be
calculated:
1. The value of taxable goods and services.
2. The value of relevant goods and relevant services received by the person if not
calculated under Clause (1) of this Article.
3. The value of the whole or relevant part of taxable supplies belonging to such person if he
acquires, in whole or in part, a business of a person who has made such supplies.
4. The value of taxable supplies made by related parties according to the cases defined by
the Executive Regulations of this Decree -Law.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (20)
Capital Assets
The supply of capital assets belonging to the person during practicing the business shall be
disregarded when determining whether a person exceeds the Mandatory Registration
Threshold or the Voluntary Registration Threshold.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (21)
Cases of Tax Deregistration
1. The Registrant shall submit to the Authority an application for the Tax deregistration in
any of the following cases:
a. If he ceases to make Taxable Supplies.
b. If the value of the Taxable Supplies made during the period of (12) twelve
consecutive months is less than the Voluntary Registration Threshold, and the case
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 17
set out in Clause (2) of article (17) of this Decree -Law is not applicable to him.
2. The Authority may issue a Tax deregistration decision where it is convinced that the
retention of tax registration would adversely affect the tax system's integrity, pursuant to
the conditions and controls set forth in the Executive Regulations of this Decree -Law.
3. The Tax deregistration shall not invalidate the Authority's right to claim any tax due or
administrative fines.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (22)
Applying for Cancellation of Tax Registration
The registrant may submit to the Authority an application for cancellation of tax registration
if the value of the taxable supplies made during the period of previous twelve months is less
than the Mandatory Registration Threshold.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (23)
Voluntary Tax Registration Cancellation
The registrant shall not be entitled, pursuant to article (17) hereof, to submit an application
for cancellation of his tax registration within twelve months as of the date of his tax
registration.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (24)
Procedures, Controls and Conditions of Tax Registration and Cancellation
thereof
The Executive Regulations of this Decree -Law shall determine the procedures, controls and
conditions of the tax registration, cancellation thereof and rejection of applications for tax registration and its cancellation as set forth in this Part.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 18
Part Five
Rules on Supply
Chapter One
Date of Supply
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (25)
Date of Supply
The tax shall be calculated on the date of supply of goods or services, which shall be the
earlier date of any of the following:
1. The date of transferring the goods if they are transferred under the supervision of the
supplier.
2. The date on which the goods are made available to the recipient if they are not
transferred under the supervision of the supplier.
3. The date on which the assembly or installation of goods is completed if there is an obligation to install and assemble the supplied goods.
4. The date on which the goods are imported in accordance with the Customs Legislation.
5. The date on which the recipient accepts the supply, or no later than twelve (12) months following the date on which the goods are transferred or made available to the recipient,
if the supply id made on a returnable basis.
6. The completion date of providing the services.
7. The date of receiving the payment or the date of issuing the tax invoice.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (26)
Date of Supply in Special Cases
1. The date of supply of Goods and Services for any contract that contains periodic
payments or consecutive invoices shall be the earliest date of the following:
a. The date of issuing any tax invoice;
b. The maturity date of the amount stated in the tax invoice;
c. The date of receiving the paid amount; or
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 19
d. The date on which a year has lapsed following the date of supplying the goods or
services.
2. The date of supply, in cases where payment is made through vending machines, shall be the date on which the amount is collected from such machines.
3. The date of Deemed Supply of Goods or Services shall be the date of their supply,
disposal thereof, change of their use purposes or Tax deregistration, as the case may be.
4. The date of supply of Vouchers shall be the date of their issuance or supply thereafter."
Chapter Two
Place of Supply
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (27)
Place of Supply of Goods
The place of supply of Goods shall be in the State if such supply is made in the State and
does not involve Exportation from or Importation into the State.
2. The place of supply of installed or assembled Goods if exported from or imported to the
State shall be:
a. In the State if such Goods are assembled or installed in the State.
b. Outside the State if such Goods are assembled or installed outside the State.
3. The place of su pply of Goods that involves Exportation or Importation shall be as
follows:
a. Inside the State in the following cases:
i. If the supply involves Exportation to a place outside the Applying States;
ii. If the Recipient of Goods in an Applying State is not registered for the Tax in the
state of destination, and the total exports from the same supplier to such state
does not exceed the Mandatory Registration Threshold of such state;
iii. If the Recipient of Goods does not have a Tax Registration Number in the State
and the total exports from a supplier in an Applying State to the State exceeds the
Mandatory Registration Threshold; and
iv. If article (26.1) above is applicable and the title to Goods is transferred inside the
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 20
State.
b. Outside the State in the following cases:
i. If the supply involves Exportation to a customer registered for the Tax purposes
in one of the Applying States.
ii. If the Recipient of Goods is not registered for the Tax purposes in one of the
applying state to which Exportation is made, and the total exports from the same
supplier to such state exceeds the Mandatory Registration Threshold of such state.
iii. If the Recipient of Goods does not have a Tax Registration Number and imports Goods from a supplier registered for the Tax in an Applying State from which
importation is made, and the total imports from the same supplier to the State do
not exceed the Mandatory Registration Threshold.
4. Goods shall not be treated as exported outside the State and then re -imported thereto if
such Goods are supplied in the State and the supply requires sending the Goods outside the State and then the re -entry thereof into the State, as per the cases defined by the
Executive Regulations of this Decree -Law.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (28)
Place of Supply of Water and Energy
1. The supply of water and types of energy defined by the Executive Regulations of this Decree- Law through a distribution system, shall be deemed to be made in the place of
residence of the taxable trader if the distribution is carried out by a taxable person whose place of residence in the State to a taxable trader whose place of residence in an
applying state.
2. The s upply of water and types of energy defined by the Executive Regulations of this
Decree- Law through a distribution system, shall be deemed to be made at the place of
actual consumption if the distribution is carried out by a taxable person to a non- taxable
person.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 21
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (29)
Place of Supply of Services
The place of supply of services shall be the place of residence of the supplier.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (30)
Place of Supply in Special Cases
Notwithstanding the provisions of article (29) of this Decree -Law, the place of supply in
special cases shall be as follows:
1. If the Recipient has a place of residence in an Applying State and is registered for the tax
purposes therein, the place of supply shall be the place of residence of the Recipient.
2. If the Recipient is a Person practicing the Business and has a place of residence in the
State, and the supplier does not have a place of residence in the State, the place of supply
shall be in the State.
3. In case of the supply of Services related to Goods, such as t he Services of installation
related to Goods supplied by others, the place of supply shall be the place where such
Services are performed.
4. If the supply is leasing means of transport to a lessee who is a Untaxable Person in the
State and does not have a Tax Registration Number in an Applying State; the place of
supply shall be the place where such means of transport are made available to the
lessee.
5. In case of the supply of restaurant, hotel, and food and drink catering services; the place of supply shall be the place where such Services are actually performed.
6. In case of the supply of any cultural, artistic, sporting or educational Services or any
similar Services; the place of supply shall be the place where such services are
performed.
7. In case of the supply of Services related to a real property, as determined by the Executive Regulations of this Decree -Law, the place of supply shall be the place where
such real property is located.
8. In case of the supply of transport Services or transport -related services, the place of
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 22
supply shall be where the transport starts. The Executive Regulations of this Decree -Law
shall determine the place of supply of transport services if the trip includes more than
one stop.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (31)
Place of Supply of Telecommunication and Electronic Services
1. The place of supply of telecommunications and electronic services stated in the
Executive Regulations of this Decree -Law shall be as follows:
a. Inside the State, if such services are used and enjoyed therein, to the extent of such
use and enjoyment.
b. Outside the State, if such services are used and enjoyed outside the State, to the
extent of such use and enjoyment.
2. The actual use and enjoyment of telecommunications and electronic services shall be where such services are used regardless of the place of contract or payment.
Chapter Three
Place of Residence
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (32)
Business Establishment
The place of residence of the supplier or recipient shall be as follows:
1. The state where the business establishment of the person is located or where he has a fixed establishment, provided that he does not have a business establishment or fixed
establishment in any other state.
2. The state where the business establishment of the person is located or where he has a
fixed establishment, which is the most directly concerned with the supply if the business
establishment is located in more than one state or he has fixed establishments in more
than one state.
3. The state where the usual place of residence of the person is located if he has no business establishment or fixed establishment in any state.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 23
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (33)
Agents
The Place of Residence of the agent shall be the Place of Residence of the principal in the
following cases:
1. If the agent exercises, on a regular basis, the right of negotiation and entering into agreements on behalf of the principal.
2. If the agent keeps a stock of Goods to fulfill agreements for the supply thereof in favour
of the principal regularly.
Chapter Four
Value of Supply
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (34)
Value of Supply
The value of any supply of goods or services for a consideration shall be as follows:
1. Where the supply is for a cash consideration in whole, the value of the supply shall be
the consideration less the tax.
2. Where the supply is for a consideration not in cash or a consideration not wholly in cash,
the value of the supply shall be calculated as the overall cash part plus the market rate of
the non -cash part of the consideration, and shall not include the tax.
3. In case of services received by the taxable person who is required to calculate the tax in
accordance with Clause (1) of article (48) of this Decree -Law, the value of the supply
shall be equal to the market rate of the consideration without addition of the tax
chargeable on such supply.
4. If the consideration is related to matters other than the supply of goods or services, the
supply shall be deemed to be for the part of the consideration as is properly attributable
to the supply as determined in the Executive Regulations of this Decree -Law.
The Executive Regulations of this Decree -Law shall determine the rules of defining the
market rate.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 24
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (35)
Importation Value
The value of imported goods shall consist of:
1. The value of the goods for the customs purposes in accordance with the Customs
Legislation, including the value of insurance, freight, any customs duties and any excise
taxes to be paid on the importation of goods. The tax shall not be included in the value
of supply.
2. If it is not possible to determine the value of supply according to Clause (1) of this Article, the value shall be determined based on the alternate valuation rules set forth in the
Customs Legislation.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (36)
Value of Supply and Deemed Supply for Related Parties
Notwithstanding the provisions of Articles (34), (35) and (37) of this Decree -Law, the value
of the supply or Importation of Goods or Services between the Related Parties shall be
considered equal to the market rate if all the following conditions are fulfilled:
1. The value of the supply is less than the market rate.
2. If the supply is taxable and the Recipient of Goods or Recipient of Services is not entitled
to recover the full Tax to be levied on such supply as an Input Tax.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (37)
Value of Deemed Supply
Notwithstanding the provisions of Articles (34) and (35) of this Decree -Law, in case of the
deemed supply, when the taxable person purchases goods or services to make taxable supplies but he does not use the same for such purpose, the value of the supply shall be
equal to the total cost incurred by the taxable person to make such deemed supply of goods
or services.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 25
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (38)
Tax -Inclusive Prices
The declared prices shall inclu de the tax in case of the taxable supplies. The Executive
Regulations of this Decree -Law shall determine the cases where prices do not include the
tax.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (39)
Value of Supply in case of Discount or Subsidies
When discounts are made prior to or after the date of supply or subsidies are provided by
the State to the supplier for such supply, the value of such supply shall be reduced in
proportion to such discounts or subsidies.
The Executive Regulations of this Decree -Law shall establish the conditions and rules of
calculating the tax when the discount is made.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (40)
Value of Supply of Vouchers
The value of the supply of any voucher shall be the difference between the consideration received by the supplier of the voucher and the declared cash value of the voucher.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (41)
Value of Supply of Postage Stamps
The value of the supply of postage stamps that enables the user to use the postal services in
the State shall be the amount shown on the postage stamp.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (42)
Temporary Transfer of Goods
If the goods are transferred temporarily from the local markets to a designated area or
outside the State to complete their manufacture or their repair for the purpose of
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 26
re-importing the same to the State, the value of the supply, when re -imported, shall be the
value of the services performed.
Chapter Five
Profit Margin
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (43)
Levying the Tax based on the Profit Margin
1. The registrant may, in any specific tax period, calculate and charge the tax on the basis of
the profit margin earned on the taxable supplies determined in the Executive
Regulations of this Decree -Law and not on the basis of the value of such supplies, and
shall notify the Authority thereof.
2. The Executive Regulations of this De cree- Law shall establish the conditions to be met for
the application of the provisions of this Article.
Part Six
Zero Rate and Exemptions
Chapter One
Zero Rate
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (44)
Zero -Rated Supply and Importation
The supply and importation of goods and services specified in this Chapter made by the taxable person shall be a zero –rated supply.
|
tax | Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) | Article (45)
Zero -Rated Goods and Services
The zero rate shall apply to the following Goods and Services:
1. The direct or indirect Exportation to outside the Applying States, as determined by the Executive Regulations of this Decree -Law.
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 27
2. Services of international transport of passengers and Goods, which starts or ends in the
State or passes through its territories, including Services related to such transport.
3. The air passenger transport inside the State if such transport is deemed to be
"international carriage" in accordance with article (1) of the Warsaw Convention for the Unification of Certain Rules Relating to International Carriage by Air signed in 1929.
4. The supply or Importation of air, sea and land means of transport used to transport
passengers and Goods in accordance with the classification and conditions set forth in
the Executive Regulations of this Decree -Law.
5. The supply of Goods or Services or the Importation of Relevant Goods related to the
means of transport set out in Clause (4) of this Article, which are designated for the
operation, repair, maintenance or transformation thereof.
6. The supply or Importation of rescue aircraft and salvage ships for rescue and assistance
by air or sea.
7. The supply of Goods and Services related to Services of the transport of Goods or
Passengers aboard land, air or sea means of transport, in accordance with the provisions
of Clauses (2) and (3) of this Article, which are designated for consumption on board; or
anything consumed by any means of transport, any installations or addition thereto or
any other use during the transport process.
8. The supply or importation of investment precious metals for investment purposes. The
Executive Regulations of this Decree -Law shall determine the precious metals and the
standards based on which they are deemed to be investment.
9. The first supply of residential buildings within (3) years, as of the date of completion of
construction, either through selling or leasing the same in whole or in part, in accordance
with the rules established by the Executive Regulations of this Decree -Law.
10. The first supply of buildings designed specifically to be used by Charities through selling
or leasing the same, in accordance with the rules established by the Executive
Regulations of this Decree -Law.
11. The first supply of buildings transformed from non -residential buildings to residential
ones through selling or leasing the same, in accordance with the conditions laid down in
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 28
the Executive Regulations of this Decree -Law.
12. The supply or importation of crude oil and natural gas.
13. The supply of educational services and Related Goods and Services for nurseries,
preschool, elementary education, and higher educational institutions owned or funded by the federal or local government, as determined by the Executive Regulations of this
Decree- Law.
14. The supply of preventive and basic health care services and Related Goods and Services,
as determined by the Executive Regulations of this Decree -Law.
Chapter Two
Exemptions
|