Cabinet Resolution Concerning the Executive Regulations of Federal Decree-Law on Value-Added Tax (VAT)

Article 1 — Definitions ¶

For the purpose of applying the provisions of this Resolution, the following words and expressions shall have the meanings assigned to each of them: State; Minister; Authority; Value Added Tax (VAT); Tax; GCC States; Applying States; Goods; Services; Standard Rate; Importation; Relevant Goods; Relevant Services; Person; Taxable Person; Taxpayer; Legal Representative; Tax Registration; Tax Registration Number (TRN); Registrant; Recipient of Goods; Recipient of Services; Tax Return; Consideration; Business; Exempted Supply; Taxable Supply; Deemed Supply; Input Tax; Output Tax; Refundable Tax; Due Tax; Payable Tax; Tax Period; Tax Invoice; Tax Credit Note; Government Agencies; Charities; Mandatory Registration Threshold; Voluntary Registration Threshold; Transport-Related Services; Business Establishment; Fixed Establishment; Place of Residence; Non-Resident Person; Related Parties; Designated Area; Exportation; Direct Exportation; Indirect Exportation; Oversees Customer; Voucher; Capital Assets; Capital Assets Scheme; Administrative Fines; Tax Group; Notification; Working Day; Virtual Assets; Tax Evasion; Decree by Law.

Part Two: Supply

Article 2 — Supply of Goods ¶

1. The transfer of ownership of goods or the right to dispose thereof from one person to another shall [preview truncated]...

Article 3 — Supply of Services ¶

1. Each supply not considered a supply of goods shall be treated as a supply of services, including [preview truncated]...
Article (3) BIS Supply Exceptions
1. The following transactions shall not be considered a supply: a. The granting or transfer of o... [preview truncated]

Article 4 — Multi-Component Supply ¶

1. If a person makes a supply composed of more than one component for a single price, such person shall [preview truncated]...

Article 5 — Exceptions from the Deemed Supply ¶

1. For the purposes of Article (12.4) of the Decree by Law, the value of goods supply to each recipient [preview truncated]...

Part Three: Registration

Article 6 — Application for Registration ¶

For the purposes of mandatory or voluntary registration, the application for tax registration shall [preview truncated]...

Article 7 — Mandatory Registration ¶

1. The Mandatory Registration Threshold shall be (AED 375,000) three hundred, seventy-five thousand [preview truncated]...

Article 8 — Voluntary Registration ¶

1. The Voluntary Registration Threshold shall be (AED 187,500) one hundred eighty-seven thousand five [preview truncated]...

Article 9 — Related Parties ¶

1. For the purposes of the tax group provisions, the definition of "Related Parties" shall relate to [preview truncated]...

Article 10 — Registration as Tax Group ¶

1. A tax group shall nominate one of its registered members to act as the representative member of s [preview truncated]...

Article 11 — Amendment to Tax Group ¶

1. The representative member appointed in accordance with Article (10) of this Resolution shall be e [preview truncated]...

Article 12 — Effect of Tax Group Registration ¶

1. The registration of persons as a tax group shall result in the following: a. Any business practicing... [preview truncated]

Article 13 — Aggregation of Related Parties ¶

1. If it is found that two or more persons are in association as a result of their economic, financial [preview truncated]...

Article 14 — Cancellation of Tax Registration ¶

1. The registrant shall submit an application for cancellation of tax registration in accordance wit [preview truncated]...
Article (14) BIS Cancellation of Tax Registration to Safeguard Tax Scheme Integrity
1. The Authority may decide to cancel a tax registration if it determines that maintaining the regis [preview truncated]...

Article 15 — Cancelled or Amended Registration of Tax Group ¶

1. The Authority shall cancel the registration of any tax group in any of the following cases: a... [preview truncated]

Article 16 — Exception from Registration ¶

1. Any taxable person wishing to apply for an exception from tax registration based on that all of h [preview truncated]...

Article 17 — Registration upon Entry into Force of the Decree by Law ¶

1. A person who will be taxable on the date of entry into force of the Decree by Law, shall apply fo [preview truncated]...

Article 18 — Obligations before Cancellation of Tax Registration ¶

The cancellation of tax registration shall not exempt a person from his obligations and liabilities [preview truncated]...

Part Four: Rules on Supplies

Article 19 — Due Tax at the Date of Supply ¶

For the purposes of Articles (25), (26) and (80) of the Decree by Law, if the tax is due because a p [preview truncated]...

Article 20 — Place of Supply of Goods Delivered within the State ¶

In the event that the supply of goods requires that such goods exit and re-enter the State during be [preview truncated]...

Article 21 — Place of Supply of Services Related to Real Properties ¶

1. For the purposes of the Decree by Law and this Resolution, the "real property" shall include for [preview truncated]...

Article 22 — Place of Supply of Certain Transport Services ¶

1. The place of the supply of each transport service shall be the place where the supply of such tra [preview truncated]...

Article 23 — Telecommunication and E-Services ¶

1. "Telecommunication Services" means transmitting, broadcasting, converting or receiving any of the [preview truncated]...

Article 24 — Evidence of Certain Supplies among the Applying States ¶

1. If a taxable person makes a supply of goods from the State to a person who has a place of residen [preview truncated]...

Article 25 — Market Value ¶

1. "Similar Supply", with respect to the supply of goods or services, means any other supply of goo [preview truncated]...

Article 26 — Apportionment of Single Consideration ¶

For the purposes of Clause (4) of Article (34) and Article (47) of the Decree by Law, if the conside [preview truncated]...

Article 27 — Tax Exclusive Price ¶

1. The declared prices shall be inclusive of tax in case of the taxable supply. 2. Notwithstanding t [preview truncated]...

Article 28 — Discounts, Subsidies and Vouchers ¶

1. The State shall not be treated as providing a subsidy to the supplier if the subsidy or part ther [preview truncated]...

Part Five: Profit Margin Scheme

Article 29 — Levying the Tax based on the Profit Margin ¶

1. The taxable person may calculate and charge the tax on any goods supply on the basis of the profi [preview truncated]...

Part Six: Zero-Rated Supply

Article 30 — Applying the Zero Rate to the Exportation of Goods ¶

1. The direct exportation shall be subject to the zero rate if both below-mentioned following condit [preview truncated]...

Article 31 — Applying the Zero Rate to the Exportation of Services ¶

1. The exportation of services shall be subject to the zero rate in the following cases. a. If ... [preview truncated]
Article (31) Applying the Zero Rate to the Exportation of Services [second instance / amendment]
1. The exportation of services shall be subject to the zero rate in the following cases. a. If t... [preview truncated]

Article 32 — Applying the Zero Rate to the Exportation of Telecommunications Services ¶

1. The exportation of telecommunications services shall be subject to the zero rate in the following [preview truncated]...

Article 33 — Applying the Zero Rate to International Transport Services for Passengers and Goods ¶

1. The supply of international transport services for passengers and goods and transport-related ser [preview truncated]...

Article 34 — Applying the Zero Rate to Certain Means of Transport ¶

The supply and import of the following means of transport shall be subject to the zero rate: 1. An a [preview truncated]...

Article 35 — Applying the Zero Rate to Goods and Services Related to Supply of Means of Transport ¶

Goods and services related to the supply of means of transport set forth in Article (34) of this Res [preview truncated]...

Article 36 — Applying the Zero Rate to Precious Metals ¶

1. The supply or importation of investment precious metals shall be subject to the zero rate. 2. The [preview truncated]...

Article 37 — Residential Buildings ¶

1. The "residential buildings" mean buildings made and designed for human occupation, including: ... [preview truncated]

Article 38 — Applying the Zero Rate to Buildings Specifically Designed to be Used by Charities ¶

The first sale or lease of a building, or any part thereof, shall be zero-rated if the building is s [preview truncated]...

Article 39 — Applying the Zero Rate to Converted Residential Buildings ¶

1. The first supply of a building, or any part thereof, which is converted to a residential building [preview truncated]...

Article 40 — Applying the Zero Rate to Educational Services ¶

1. The supply of educational services shall be subject to the zero rate if the following conditions [preview truncated]...

Article 41 — Applying the Zero Rate to Healthcare Services ¶

1. The "healthcare services" mean any service supplied and generally recognized in the medical profe [preview truncated]...

Part Seven: Exempted Supplies

Article 42 — Tax Treatment of Financial Services ¶

1. For the purposes of this Article: a. The "debt security" means any interest in or right to re [preview truncated]...

Article 43 — Exemption of Residential Buildings ¶

1. The supply of residential buildings shall be exempted, except for zero-rated supplies, if the ter [preview truncated]...

Article 44 — Exemption of Vacant Lands ¶

The "vacant land" means the land on which no completed or partially completed buildings or civil eng [preview truncated]...

Article 45 — Exemption of Domestic Passenger Transport Services ¶

1. The supply of domestic passenger transport services by a qualifying means of transport by land, w [preview truncated]...

Part Eight: Calculating the Tax on Certain Supplies

Article 46 — Levying Tax on Multi-Component Supply ¶

For the purposes of the supply composed of more than one component: 1. If the supply is a single com [preview truncated]...

Article 47 — General Provisions Relating to the Importation of Goods ¶

1. Without prejudice to the provisions of the Decree by Law and this Resolution, goods shall not be [preview truncated]...

Article 48 — Calculating the Tax Under the Reverse Charge Mechanism on Importation of Relevant Goods ¶

1. For the purposes of importing relevant goods, the provisions of Clause (1) of Article (48) of the [preview truncated]...

Article 49 — Payments for Goods Transferred to Another Applying States ¶

1. For the purposes of Clause (2) of Article (48) of the Decree by Law, the taxable person shall pay [preview truncated]...

Article 50 — Special Provisions on Import ¶

1. If non-registrant person imports certain goods or if the taxable person does not meet the conditi [preview truncated]...

Part Nine: Designated Areas

Article 51 — Designated Areas ¶

1. Any designated area specified by a resolution of the Cabinet shall be treated as being outside th [preview truncated]...

Part Ten: Calculation of the Due Tax

Article 52 — Input Tax Refund in Respect of Exempted Supplies ¶

1. Supplies referred to in paragraph (c) of Clause (1) of Article (54) of the Decree by Law are the [preview truncated]...

Article 53 — Non-Refundable Input Tax ¶

1. The input tax shall be non-refundable if incurred by a person in the following cases: a. If ... [preview truncated]

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 relat [preview truncated]...

Part Eleven: Apportionment of Input Tax

Article 55 — Apportionment of Input Tax ¶

1. If there are quarterly tax periods, the tax year shall be as follows: a. If a taxable person' [preview truncated]...

Article 56 — Adjustment of Input Tax Post-Refund ¶

1. If the input tax is refunded because it is attributed to supplies as specified in Clause (1) of A [preview truncated]...

Part Twelve: Capital Asset Scheme

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 mor [preview truncated]...

Article 58 — Adjustments under Capital Assets Scheme ¶

1. A capital asset eligible for the Capital Asset Scheme shall be monitored and the input tax incurr [preview truncated]...

Part Thirteen: Tax Invoices and Tax Credit Notes

Article 59 — Tax Invoices ¶

1. A tax invoice shall include all of the following particulars: a. The phrase "Tax Invoice" cl [preview truncated]...

Article 60 — Tax Credit Note ¶

1. The tax credit note shall include the following particulars: a. The phrase "Tax Credit Note" [preview truncated]...

Article 61 — Fractions of Fils ¶

If the tax levied on a supply is calculated to a fraction of a Fils, the taxable person is permitted [preview truncated]...

Part Fourteen: Tax Returns and Tax Periods

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 [preview truncated]...

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 [preview truncated]...

Article 64 — Tax Return and Payment ¶

1. A tax return shall be delivered to the Authority no later than the 28th day following the end of [preview truncated]...

Part Fifteen: Refund on Excess Tax

Article 65 — Refund of Excess Tax ¶

If the taxable person has excess refundable tax for a tax period and submits a request to the Author [preview truncated]...

Part Sixteen: Other Provisions Relating to Refund

Article 66 — New Residence ¶

1. If a person owns or acquires land in the State on which he builds, or authorizes the construction [preview truncated]...

Article 67 — Visitors for Business Purposes ¶

1. The Authority shall apply the VAT Refunds for Foreign Businesses Scheme to allow the refund of ta [preview truncated]...

Article 68 — Tourist Visitors ¶

1. The Cabinet may issue a resolution applying the Tax Refunds for Tourists Scheme determining the f [preview truncated]...

Article 69 — Foreign Governments ¶

If the tax is incurred by a foreign government, international organization, diplomatic body and miss [preview truncated]...

Part Seventeen

Article 70 — Transitional Provisions ¶

1. For the purposes of Paragraph (e) of Clause (1) of Article (80) of the Decree by Law, "acceptance [preview truncated]...

Article 71 — Recordkeeping Requirements ¶

1. Subject to Clause (2) of this Article, any records required to be kept in accordance with the pro [preview truncated]...

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 [preview truncated]...

Part Eighteen: Final Provisions

Article 73 ¶

The Authority shall be competent to issue clarifications and directives regarding the application of [preview truncated]...

Article 74 — Repeal of Conflicting Provisions ¶

Any provision inconsistent or discrepant with the provisions of this Resolution is hereby repealed.

Article 75 — Publishing and Enforcement ¶

This Resolution shall be published in the Official Gazette and shall enter into force as of 1st January 2018.

Translated in cooperation with