VAT Decree Law

Definitions – Article 1 – VAT Decree Law

Article 1 – Definitions State Minister United Arab Emirates. Authority Federal Tax Authority. Value Added Tax A tax imposed on the Import and supply of...

Scope of Tax – Article 2 – VAT Decree Law

Article 2 – Scope of Tax Every Taxable Supply and Deemed Supply made by the Taxable Person. Import of Concerned Goods except as specified in...

Tax Rate – Article 3 – VAT Decree Law

Article 3 – Tax Rate Without prejudice to the provisions of Title Six of this Decree-Law, a standard rate of 5% Tax shall be imposed...

Responsibility for Tax – Article 4 – VAT Decree Law

Article 4 – Responsibility for Tax A Taxable Person who makes any supply stipulated in Clause 1 of Article 2 of this Decree-Law. The Importer...

Supply of Goods – Article 5 – VAT Decree Law

Article 5 – Supply of Goods The following shall be considered a supply of Goods: 1. Transfer of ownership of the Goods or the right...

Supply of Services – Article 6 – VAT Decree Law

Article 6 – Supply of Services A supply of Services shall be every supply that is not considered a supply of Goods, including any provision...

Supply in Special Cases – Article 7 – VAT Decree Law

Article 7 – Supply in Special Cases As an exception to what is stated in Articles 5 and 6 of this Decree-Law, the following shall...

Supply consisting of more than one component – Article 8 – VAT Decree Law

Article 8 – Supply consisting of more than one component The Executive Regulation of this Decree-Law shall specify the conditions for treating a supply consisting...

Supply via Agent – Article 9 – VAT Decree Law

Article 9 – Supply via Agent The Supply of Goods and Services through an agent acting in the name of and on behalf of a...

Supply by Government Entities – Article 10 – VAT Decree Law

Article 10 – Supply by Government Entities A Government Entity is regarded as making a supply in the course of business in the following cases:...

Cases of Deemed Supply – Article 11 – VAT Decree Law

Article 11 – Cases of Deemed Supply A supply of Goods or Services, which constituted the whole assets of a Taxable Person’s Business or a...

Exceptions from Deemed Supply – Article 12 – VAT Degree Law

Article 12 – Exceptions from Deemed Supply: If no Input Tax was recovered for the related Goods and Services. If the supply is an Exempt...

Mandatory Tax Registration – Article 13 – VAT Degree Law

Article 13 – Mandatory Tax Registration Every Person, who has a Place of Residence in the State or an Implementing State, shall register for Tax...

Tax Group – Article 14 – VAT Degree Law

Article 14 – Tax Group Two or more persons conducting Business may apply for Tax Registration as a Tax Group if all of the following...

Registration Exception – Article 15 – VAT Degree Law

Article 15 – Registration Exception The Authority may except a Taxable Person from Tax Registration whether a Registrant or not, upon his request if his...

Tax Registration of Government Entities– Article 16 – VAT Decree Law

Article 16 – Tax Registration of Government Entities Government Entities as determined in a Cabinet Decision issued under Clause 2 of Article 10 of this...

Voluntary Registration – Article 17 – VAT Decree Law

Article 17 – Voluntary Registration Any Person who is not obligated to apply for Tax Registration according to this Chapter may voluntarily apply for Tax...

Tax Registration for a Non-Resident – Article 18 – VAT Decree Law

Article 18 – Tax Registration for a Non-Resident A Non-resident Person may not take the value of Goods and Services imported into the State to...

Calculating the Tax Registration Threshold -Article 19 – VAT Decree Law

Article 19 – Calculating the Tax Registration Threshold To determine whether a Person has exceeded the Mandatory Registration Threshold and the Voluntary Registration Threshold, the...

Capital Assets – Article 20 – VAT Decree Law

Article 20 – Capital Assets The supply of Capital Assets belonging to the Person shall not be taken into account to determine whether a Person...

Tax Deregistration Cases – Article 21 – VAT Decree Law

Article 21 – Tax Deregistration Cases A Registrant shall apply to the Authority for Tax deregistration in any of the following cases: If he stops...

Application for Tax Deregistration – Article 22 – VAT Decree Law

Article 22 – Application for Tax Deregistration A Registrant may apply to the Authority for Tax deregistration if the value of his Taxable Supplies made...

Voluntary Tax Deregistration – Article 23 – VAT Decree Law

Article 23 – Voluntary Tax Deregistration A Registrant under Article 17 may not apply for Tax deregistration within 12 months of the date of Tax...

Procedures, Controls and Conditions of Tax Registration and Deregistration – Article 24 – VAT Decree Law

Article 24 – Procedures, Controls and Conditions of Tax Registration and Deregistration The Executive Regulation of this Decree-Law shall determine the procedures, controls and conditions...

Date of Supply – Article 25 – VAT Decree Law

Article 25 – Date of Supply Tax shall be calculated on the date of supply of Goods or Services, which shall be the earliest of...

Date of Supply in Special Cases – Article 26 – VAT Decree Law

Article 26 – Date of Supply in Special Cases The date of supply of Goods or Services for any contract that includes periodic payments or...

Place of Supply of Goods – Article 27 – VAT Decree Law

Article 27 – Place of Supply of Goods The place of supply of Goods shall be in the State if the supply was made in...

Place of Supply of Water and Energy – Article 28 – VAT Decree Law

Article 28 – Place of Supply of Water and Energy The supply of water and the forms of energy specified in the Executive Regulation of...

Place of Supply of Services – Article 29 – VAT Decree Law

Article 29 – Place of Supply of Services The place of supply of Services shall be the Place of Residence of the Supplier.

Place of Supply in Special Cases – Article 30 – VAT Decree Law

Article 30 – Place of Supply in Special Cases Where the Recipient of Services has a Place of Residence in an Implementing State and is...

Place of Supply of Telecommunication and Electronic Services – Article 31 – VAT Decree Law

Article 31 – Place of Supply of Telecommunication and Electronic Services For telecommunications and electronic Services specified in the Executive Regulation of the Decree-Law, the...

Place of Establishment – Article 32 – VAT Decree Law

Article 32 – Place of Establishment The Place of Residence of the supplier or Recipient of Services shall be as follows: The state in which...

The Agent– Article 33 – VAT Decree Law

Article 33 – The Agent The Place of Residence of the principal shall be considered as being the Place of Residence of the agent in...

Value of Supply – Article 34 – VAT Decree Law

Article 34 – Value of Supply If the entire Consideration is monetary, the value of the supply shall be the Consideration less the Tax. If...

Value of Import – Article 35 – VAT Decree Law

Article 35 – Value of Import The Import value of Goods consists of: The customs value pursuant to Customs Legislation, including the value of insurance,...

Value of Supply and Deemed Supply for Related Parties – Article 36 – VAT Decree Law

Article 36 – Value of Supply and Deemed Supply for Related Parties As an exception to Articles 34, 35, and 37 of this Decree-Law, the...

Value of Deemed Supply – Article 37 – VAT Decree Law

Article 37 – Value of Deemed Supply As an exception to Articles 34 and 35 of this Decree-Law, the value of the supply in the...

Tax-Inclusive Prices – Article 38 – VAT Decree Law

Article 38 – Tax-Inclusive Prices In the case of a Taxable Supply, the advertised price shall include the Tax. Instances where prices do not include...

Value of Supply in case of Discount or Subsidies – Article 39 – VAT Decree Law

Article 39 – Value of Supply in case of Discount or Subsidies When discounts are granted before or after the Date of Supply or subsidies...

Value of Supply of Vouchers – Article 40 – VAT Decree Law

Article 40 – Value of Supply of Vouchers The value of supply of a Voucher is the difference between the consideration received by the supplier...

Value of Supply of Postage Stamps – Article 41 – VAT Decree Law

Article 41 – Value of Supply of Postage Stamps The value of supply for postage stamps that allow the user to use postal services in...

Temporary Transfer of Goods – Article 42 – VAT Decree Law

Article 42 – Temporary Transfer of Goods If Goods are transferred temporarily from the domestic market into a Designated Zone or outside the State for...

Charging Tax based on Profit Margin – Article 43 – VAT Decree Law

Article 43 – Charging Tax based on Profit Margin 1. The Registrant may, in any Tax Period, calculate and charge Tax based on the profit...

Supply and Import Taxable at Zero Rate – Article 44 – VAT Decree Law

Article 44 – Supply and Import Taxable at Zero Rate The supply and Import of Goods and Services specified in this Chapter made by a...

Goods and Services Subject to Zero Rate – Article 45 – VAT Decree Law

Article 45 – Goods and Services Subject to Zero Rate A direct or indirect Export of Goods and Services to outside the Implementing States as...

Supply Exempt from Tax – Article 46 – VAT Decree Law

Article 46 – Supply Exempt from Tax Supply of financial services that are specified in the Executive Regulation of this Decree-Law. Supply of residential buildings...

Supply Consisting of More Than One Component -Article 47 – VAT Decree Law

Article 47 – Supply Consisting of More Than One Component The Executive Regulation of this Decree-Law will specify the controls to determine the Tax treatment...

Reverse Charge – Article 48 – VAT Decree Law

Article 48 – Reverse Charge 1. If the Taxable Person imports Concerned Goods or Concerned Services for the purposes of his Business, then he shall...

Import of Concerned Goods – Article 49 – VAT Decree Law

Article 49 – Import of Concerned Goods A person not registered for Tax shall settle Due Tax on Import of Concerned Goods from outside the...

Designated Zone – Article 50 – VAT Decree Law

Article 50 – Designated Zone A “Designated Zone” that meets the conditions specified in the Executive Regulation of this Decree-Law shall be treated as being...

Transfer of Goods in Designated Zones -Article 51 – VAT Decree Law

Article 51 – Transfer of Goods in Designated Zones Goods may be transferred from one Designated Zone to another Designated Zone without any Tax becoming...

Exceptions for Designated Zone – Article 52 – VAT Decree Law

Article 52 – Exceptions for Designated Zone As an exception to Article 50 of this Decree-Law, the Executive Regulation of this Decree-Law shall specify the...

Calculation of Payable Tax – Article 53 – VAT Decree Law

Article 53 – Calculation of Payable Tax The Payable Tax for any Tax Period shall be calculated as being equal to the total Output Tax...

Recoverable Input Tax – Article 54 – VAT Decree Law

Article 54 – Recoverable Input Tax The Input Tax that is recoverable by a Taxable Person for any Tax Period is the total of Input...

Recovery of Recoverable Input Tax in the Tax Period – Article 55 – VAT Decree Law

Article 55 – Recovery of Recoverable Input Tax in the Tax Period Taking into consideration the provisions of Article 56 of this Decree-Law, the recoverable...

Input Tax Paid before Tax Registration – Article 56 – VAT Decree Law

Article 56 – Input Tax Paid before Tax Registration A Registrant may recover recoverable Input Tax incurred before Tax Registration on the Tax Return submitted...

Recovery of Tax by Government Entities and Charities – Article 57 – VAT Decree Law

Article 57 – Recovery of Tax by Government Entities and Charities Without prejudice to the general provisions of Input Tax recovery, Government Entities and Charities...

Calculating the Input Tax that may be Recovered – Article 58 – VAT Decree Law

Article 58 – Calculating the Input Tax that may be Recovered The Executive Regulation of this Decree-Law shall specify the method in which the Input...

Conditions and Mechanism of Input Tax Adjustment – Article 59 – VAT Decree Law

Article 59 – Conditions and Mechanism of Input Tax Adjustment The Executive Regulation of this Decree-Law shall specify the conditions and mechanism for adjusting Input...

Capital Assets Scheme – Article 60 – VAT Decree Law

Article 60 – Capital Assets Scheme If a Capital Asset is supplied or imported by a Taxable Person, the latter shall assess the period of...

Instances and Conditions for Output Tax Adjustments – Article 61 – VAT Decree Law

Article 61 – Instances and Conditions for Output Tax Adjustments A Registrant shall adjust Output Tax after the date of supply in any of the...

Mechanism for Output Tax Adjustment – Article 62 – VAT Decree Law

Article 62 – Mechanism for Output Tax Adjustment If the Output Tax due for the supply exceeds the Output Tax calculated by the Registrant, the...

Adjustment due to the Issuance of Tax Credit Notes – Article 63 – VAT Decree Law

Article 63 – Adjustment due to the Issuance of Tax Credit Notes Without prejudice to Clause 2 of Article 62 of this Decree-Law, if the...

Adjustment for Bad Debts – Article 64 – VAT Decree Law

Article 64 – Adjustment for Bad Debts 1. A Registrant supplier may reduce the Output Tax in a current Tax Period to adjust the Output...

Conditions and Requirements for Issuing Tax Invoices – Article 65 – VAT Decree Law

Article 65 – Conditions and Requirements for Issuing Tax Invoices A Registrant making a Taxable Supply shall issue an original Tax Invoice and deliver it...

Document of Supplies to an Implementing States – Article 66 – VAT Decree Law

Article 66 – Document of Supplies to an Implementing State Without prejudice to Article 65 of this Decree-Law, each Registrant who supplies Goods or Services...

Date of Issuance of Tax Invoice – Article 67 – VAT Decree Law

Article 67 – Date of Issuance of Tax Invoice 1. The Registrant shall issue a Tax Invoice within 14 days from the date of supply...

Rounding on Tax Invoices – Article 68 – VAT Decree Law

Article 68 – Rounding on Tax Invoices For the purpose of stating the Tax due on a Tax Invoice, the Executive Regulation of this Decree-Law...

Currency Used on Tax Invoices – Article 69 – VAT Decree Law

Article 69 – Currency Used on Tax Invoices If the supply is in a currency other than the UAE Dirham, then for the purposes of...

Conditions and Requirements for Issuing the Tax Credit Note – Article 70 – VAT Decree Law

Article 70 – Conditions and Requirements for Issuing the Tax Credit Note The Registrant shall issue an original Tax Credit Note when a reduction of...

Duration of Tax Period – Article 71 – VAT Decree Law

Article 71 – Duration of Tax Period The Executive Regulation of this Decree-Law shall specify the Tax Period for which the Taxable Person shall calculate...

Submission of Tax Returns – Article 72 – VAT Decree Law

Article 72 – Submission of Tax Returns 1. The Taxable Person shall submit the Tax Return to the Authority for each Tax Period within the...

Settlement of Tax – Article 73 – VAT Decree Law

Article 73 – Settlement of Tax The Executive Regulation of this Decree-Law shall specify the time limits and procedures for settlement of Tax stated as...

Excess Recoverable Tax – Article 74 – VAT Decree Law

Article 74 – Excess Recoverable Tax 1. Subject to the provisions of the Tax Procedures Law and its Executive Regulation, and without prejudice to the...

Tax Recovery in Special Cases – Article 75 – VAT Decree Law

Article 75 – Tax Recovery in Special Cases The Authority may, according to the conditions, controls, and procedures specified in the Executive Regulation of this...

Administrative Penalties Assessment – Article 76 – VAT Decree Law

Article 76 – Administrative Penalties Assessment Without prejudice to the provisions of the Tax Procedures Law, the Authority shall issue an Administrative Penalty Assessment to...

Tax Evasion – Article 77 – VAT Decree Law

Article 77 – Tax Evasion Without prejudice to the instances of Tax Evasion referred to in the Tax Procedures Law, if it is proven that...

Record-keeping – Article 78 – VAT Decree Law

Article 78 – Record-keeping 1. Without prejudice to the provisions related to record-keeping stated in any other law, the Taxable Person shall keep the following...

Stating the Tax Registration Number – Article 79 – VAT Decree Law

Article 79 – Stating the Tax Registration Number The Taxable Person or any other Person authorised in writing by him shall state the Tax Registration...

Statute of Limitation – Article 79 – VAT Decree Law

Article 79 (bis) – Statute of Limitation Except in cases under Clauses 2, 3, 6, 7 of this Article, the Authority may not conduct a...

Transitional Rules – Article 80 – VAT Decree Law

Article 80 – Transitional Rules If the supplier receives Consideration or part thereof or issues an invoice for Goods or Services before the Decree-Law comes...

Revenue Sharing – Article 81 – VAT Decree Law

Article 81 – Revenue Sharing Tax revenues and Administrative Penalties collected in accordance with the provisions of this Decree-Law shall be subject to sharing between...

Executive Regulation – Article 82 – VAT Decree Law

Article 82 – Executive Regulation The Cabinet shall issue the Executive Regulation of this Decree-Law at the suggestion of the Minister.

Article 83 – VAT Decree Law

Article 83 In the absence of any special provision in this Decree-Law, the provisions of the Tax Procedures Law shall be applied.

Cancellation of Conflicting Provisions – Article 84 – VAT Decree Law

Article 84 – Cancellation Of Conflicting Provisions Any text or provisions contrary to or inconsistent with the provisions of this Decree-Law shall be abrogated.

Effective Date of this Decree-Law and its Application – Article 85 – VAT Decree Law

Article 85 – Effective Date Of This Decree-Law And Its Application This Decree-Law shall be published in the Official Gazette and shall come into effect...