Meaning of Supply (ie. Turnover, Sales, Revenues, Income etc) in UAE VAT and how to calculate the value of taxable supply.
Supply is divided in 3 parts as per Article 1 UAE VAT Decree-Law No. (8) of 2017, which deals with the definitions of the terms used under the UAE VAT Law.
1. Exempt Supply: A supply of Goods or Services for Consideration while conducting Business in the State, where no Tax is due and no Input Tax may be recovered, except according to the provisions of this Decree-Law.
2. Taxable Supply: Taxable Supply: A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supply.
3. Deemed Supply: Anything considered as a supply and treated as a Taxable Supply according to the instances stipulated in this Decree-Law.
It should be noted that the import of the goods and services which if supplied in UAE would not be exempt are defined as Concerned Goods and Concerned Services.
In the aforesaid diagram we have tried to simplify the understanding to calculate the amount of taxable supply. While calculating the threshold amount for the vat registration it should be noted that even the value of import of the concerned goods and services along with value of taxable supplies made in UAE be considered.
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