Place of supply in case of export of goods
1. The place of supply of installed or assembled Goods if exported from or imported into the State shall be:
a. In the State if assembly or installation of the Goods was done in the State.
b. Outside the State if assembly or installation of the Goods was done outside the State.
2. The place of supply of Goods that includes Export or Import shall be as follows:
a. Inside the State in the following instances:
1) If the supply includes exporting to a place outside the Implementing States.
2) If the Recipient of Goods in an Implementing State is not registered for Tax in the state of destination, and the total exports from the same supplier to this state does not exceed the mandatory registration threshold for said state.
3) The Recipient of Goods does not have a Tax Registration Number in the State, and the total exports from the same supplier in an Implementing State to the State exceeds the Mandatory Registration Threshold.
b. Outside the State in the following instances:
1) The supply includes an Export to a customer registered for Tax purposes in one of the Implementing States.
2) The Recipient of Goods is not registered for Tax in the Implementing State to which export is made, and the total exports from the same supplier to this Implementing State exceeds the mandatory registration threshold for said state.
3) The Recipient of Goods does not have a Tax Registration Number and the Goods are Imported from a supplier registered for Tax in any of the Implementing States from which import is made, and the total imports from the same supplier to the State do not exceed the Mandatory Registration Threshold.
3. Goods shall not be treated as exported outside the State and then re-imported if such Goods are supplied in the State and this supply required that the Goods exit and then re-enter the State according to the instances specified in the Executive Regulation of this Decree-Law.
1. The place of supply of installed or assembled Goods if exported from or imported into the State shall be:
a. In the State if assembly or installation of the Goods was done in the State.
b. Outside the State if assembly or installation of the Goods was done outside the State.
2. The place of supply of Goods that includes Export or Import shall be as follows:
a. Inside the State in the following instances:
1) If the supply includes exporting to a place outside the Implementing States.
2) If the Recipient of Goods in an Implementing State is not registered for Tax in the state of destination, and the total exports from the same supplier to this state does not exceed the mandatory registration threshold for said state.
3) The Recipient of Goods does not have a Tax Registration Number in the State, and the total exports from the same supplier in an Implementing State to the State exceeds the Mandatory Registration Threshold.
b. Outside the State in the following instances:
1) The supply includes an Export to a customer registered for Tax purposes in one of the Implementing States.
2) The Recipient of Goods is not registered for Tax in the Implementing State to which export is made, and the total exports from the same supplier to this Implementing State exceeds the mandatory registration threshold for said state.
3) The Recipient of Goods does not have a Tax Registration Number and the Goods are Imported from a supplier registered for Tax in any of the Implementing States from which import is made, and the total imports from the same supplier to the State do not exceed the Mandatory Registration Threshold.
3. Goods shall not be treated as exported outside the State and then re-imported if such Goods are supplied in the State and this supply required that the Goods exit and then re-enter the State according to the instances specified in the Executive Regulation of this Decree-Law.
Important concepts in relation to Place of supply of goods under VAT in UAE :
What is Supply of Goods ?
The following shall be considered a supply of Goods,
1. Transfer of ownership of the Goods or the right to use them to another Person according to what is specified in the rules and regulations made under UAE Value Added Tax Law.
2. Entry into a contract between two parties entailing the transfer of Goods at a later time, pursuant to the conditions specified in the rules and regulations made under UAE Value Added Tax Law.
What is an Implementing States ?
The GCC States that are implementing a Tax law pursuant to an issued legislation.
What is Taxable Supply ?
A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supplies.
What is 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 as specified under the UAE VAT Law and rules & regulations made the there under from time to time.
Who is a supplier ?
A supplier is a person or business that provides a product or service to another person or business.
What is consideration ?
All that is received or expected to be received for the supply of Goods or Services, whether in money or other acceptable forms of payment.
What is business ?
Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, service or excavation activities or anything related to the use of tangible or intangible properties.
Who is Taxable Person ?
Any Person registered or obligated to register for Tax purposes under UAE VAT Law.
What is Tax Period ?
A specific period of time for which the Payable Tax shall be calculated and paid.
What is Goods ?
Physical property that can be supplied including but not limited to real estate, water, and all forms of energy as specified in this Decision.
What is Services ?
Anything that can be supplied other than Goods.
What is Supply of Goods ?
The following shall be considered a supply of Goods,
1. Transfer of ownership of the Goods or the right to use them to another Person according to what is specified in the rules and regulations made under UAE Value Added Tax Law.
2. Entry into a contract between two parties entailing the transfer of Goods at a later time, pursuant to the conditions specified in the rules and regulations made under UAE Value Added Tax Law.
What is an Implementing States ?
The GCC States that are implementing a Tax law pursuant to an issued legislation.
What is Taxable Supply ?
A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supplies.
What is 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 as specified under the UAE VAT Law and rules & regulations made the there under from time to time.
Who is a supplier ?
A supplier is a person or business that provides a product or service to another person or business.
What is consideration ?
All that is received or expected to be received for the supply of Goods or Services, whether in money or other acceptable forms of payment.
What is business ?
Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, service or excavation activities or anything related to the use of tangible or intangible properties.
Who is Taxable Person ?
Any Person registered or obligated to register for Tax purposes under UAE VAT Law.
What is Tax Period ?
A specific period of time for which the Payable Tax shall be calculated and paid.
What is Goods ?
Physical property that can be supplied including but not limited to real estate, water, and all forms of energy as specified in this Decision.
What is Services ?
Anything that can be supplied other than Goods.
