Federal Decree by Law on Concerning Value-Added Tax (VAT)

Article 1 — Definitions ¶

Definitions include: State; Minister; Authority; Value-Added Tax (VAT); Tax; GCC States; Applying States; Goods; Services; Importation; Relevant Goods; Relevant Services; Person; Taxable Person; Taxpayer; Tax Registration; Tax Registration Number (TRN); Registrant; Recipient of Goods; Recipient of Services; Importer; Taxable Trader; 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; Relevant Charitable Activity; Mandatory Registration Threshold; Voluntary Registration Threshold; Transport-Related Services; Business Establishment; Fixed Establishment; Place of Residence; Non-Resident Person; Related Parties; Customs Legislation; Designated Area; Exportation; Voucher; Activities Performed in a Sovereign Capacity; Capital Assets; Capital Assets Scheme; Administrative Fines; Administrative Fine Assessment; Excise Tax; Tax Group; Pure Hydrocarbons; Tax Evasion; Tax Audit; Tax Assessment; Voluntary Disclosure; Tax Procedures Law; E-invoicing System; Electronic Invoice; Electronic Credit Note.

Part Two: Scope of the Tax and Rate of the Tax

Article 2 — Scope of the Tax ¶

The Tax shall be levied on: 1. Every taxable supply and deemed supply carried out by the taxable per [preview truncated]...

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 o [preview truncated]...

Article 4 — Responsibility for the Tax ¶

The responsibility for the levied tax shall fall on the following: 1. The taxable person that makes [preview truncated]...

Part Three: Supply
Chapter One: Supply of Goods and Services

Article 5 — Supply of Goods ¶

The following shall be considered a supply of Goods: 1. Transfer of ownership of the Goods or the ri [preview truncated]...

Article 6 — Supply of Services ¶

Each supply not considered a supply of goods shall be deemed as a supply of services, including any [preview truncated]...

Article 7 — Supply in Special Cases ¶

Notwithstanding the provisions contained in Articles (5) and (6) of this Decree-Law, the following s [preview truncated]...

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 s [preview truncated]...

Article 9 — Supply by an Agent ¶

1. Where goods and services are supplied by an agent acting on behalf of a principal, the supply sha [preview truncated]...

Article 10 — Supply by Government Agencies ¶

1. The government agency shall be deemed as making a supply in the course of business in the followi [preview truncated]...

Chapter Two: Deemed Supply

Article 11 — Cases of Deemed Supply ¶

The following cases shall be regarded as deemed supply: 1. Supply of goods or services forming the w [preview truncated]...

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 in [preview truncated]...

Part Four: Tax Registration and Cancellation thereof

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 reg [preview truncated]...

Article 14 — Tax Group ¶

1. Two or more persons practicing the business may apply for the tax registration as a tax group if [preview truncated]...

Article 15 — Exemption from the Registration ¶

1. The Authority may exempt the Taxable Person, whether registered or unregistered, from the Tax Reg [preview truncated]...

Article 16 — Tax Registration of Government Agencies ¶

Government agencies to be determined by the Cabinet resolution referred to in Clause (2) of Article [preview truncated]...

Article 17 — Voluntary Registration ¶

Any person who is not liable to be registered in accordance with the provisions of this Part may app [preview truncated]...

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 pur [preview truncated]...

Article 19 — Calculating the Tax Registration Threshold ¶

For the purpose of determining whether a person exceeds the Mandatory Registration Threshold and the [preview truncated]...

Article 20 — Capital Assets ¶

The supply of capital assets belonging to the person during practicing the business shall be disrega [preview truncated]...

Article 21 — Cases of Tax Deregistration ¶

1. The Registrant shall submit to the Authority an application for the Tax deregistration in any of [preview truncated]...

Article 22 — Applying for Cancellation of Tax Registration ¶

The registrant may submit to the Authority an application for cancellation of tax registration if th [preview truncated]...

Article 23 — Voluntary Tax Registration Cancellation ¶

The registrant shall not be entitled, pursuant to Article (17) hereof, to submit an application for [preview truncated]...

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 [preview truncated]...

Part Five: Rules on Supply
Chapter One: Date of Supply

Article 25 — Date of Supply ¶

The tax shall be calculated on the date of supply of goods or services, which shall be the earlier d [preview truncated]...

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 cons [preview truncated]...

Chapter Two: Place of Supply

Article 27 — Place of Supply of Goods ¶

1. The place of supply of Goods shall be in the State if such supply is made in the State and does n [preview truncated]...

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 t [preview truncated]...

Article 29 — Place of Supply of Services ¶

The place of supply of services shall be the place of residence of the supplier.

Article 30 — Place of Supply in Special Cases ¶

Notwithstanding the provisions of Article (29) of this Decree-Law, the place of supply in special ca [preview truncated]...

Article 31 — Place of Supply of Telecommunication and Electronic Services ¶

1.The place of supply of telecommunications and electronic services stated in the Executive Regulati [preview truncated]...

Chapter Three: Place of Residence

Article 32 — Business Establishment ¶

The place of residence of the supplier or recipient shall be as follows: 1. The state where the busi [preview truncated]...

Article 33 — Agents ¶

The Place of Residence of the agent shall be the Place of Residence of the principal in the followin [preview truncated]...

Chapter Four: Value of Supply

Article 34 — Value of Supply ¶

The value of any supply of goods or services for a consideration shall be as follows: 1. Where the s [preview truncated]...

Article 35 — Importation Value ¶

The value of imported goods shall consist of: 1. The value of the goods for the customs purposes in [preview truncated]...

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 [preview truncated]...

Article 37 — Value of Deemed Supply ¶

Notwithstanding the provisions of Articles (34) and (35) of this Decree-Law, in case of the deemed s [preview truncated]...

Article 38 — Tax-Inclusive Prices ¶

The declared prices shall include the tax in case of the taxable supplies. The Executive Regulations [preview truncated]...

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 [preview truncated]...

Article 40 — Value of Supply of Vouchers ¶

The value of the supply of any voucher shall be the difference between the consideration received by [preview truncated]...

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 St [preview truncated]...

Article 42 — Temporary Transfer of Goods ¶

If the goods are transferred temporarily from the local markets to a designated area or outside the [preview truncated]...

Chapter Five: Profit Margin

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 [preview truncated]...

Part Six: Zero Rate and Exemptions
Chapter One: Zero Rate

Article 44 — Zero-Rated Supply and Importation ¶

The supply and importation of goods and services specified in this Chapter made by the taxable perso [preview truncated]...

Article 45 — Zero-Rated Goods and Services ¶

The zero rate shall apply to the following Goods and Services: 1. The direct or indirect Exportation [preview truncated]...

Chapter Two: Exemptions

Article 46 — Exempted Supply ¶

The following supplies shall be exempted from the tax: 1. Financial services as specified in the Exe [preview truncated]...

Chapter Three: Single Supply and Mixed Supplies

Article 47 — Exempted Supply ¶

The Executive Regulations of this Decree-Law shall establish the controls for determining the tax tr [preview truncated]...

Chapter Four: Special Obligations for Calculating the Tax

Article 48 — Reverse Charge ¶

1. Where Taxable Person imports the concerned goods or the concerned services for the purposes of it [preview truncated]...
2. Notwithstanding the provisions of Clause (1) of this Article, in case that the final destination [preview truncated]...

Article 49 — Importation of Relevant Goods ¶

The person other than the registrant shall pay the due tax on the importation of relevant goods from [preview truncated]...

Chapter Five: Designated Areas

Article 50 ¶

The "Designated Area" that meets the conditions established in the Executive Regulations of this Dec [preview truncated]...

Article 51 ¶

1. Goods may be transferred from one designated area to another designated area without any tax due [preview truncated]...

Article 52 — Exceptions for Designated Areas ¶

Notwithstanding the provisions of Article (50) of this Decree-Law, the Executive Regulations of this [preview truncated]...

Part Seven: Calculation of the Due Tax
Chapter One: Due Tax for a Tax Period

Article 53 — Calculation of the Payable Tax ¶

The payable tax for any tax period shall be calculated as being equal to the total output tax payabl [preview truncated]...

Article 54 — Refundable Input Tax ¶

1. The input tax that is refundable by the taxable person for any tax period shall be the total sum [preview truncated]...
Article (54) BIS
1. The Authority shall reject the deduction of recoverable input tax if it is established that the s [preview truncated]...

Article 55 — Refund of Refundable Input Tax in the Tax Period ¶

1. Subject to the provisions of Article (56) of this Decree-Law, the refundable input tax may be ded [preview truncated]...

Article 56 — Input Tax Paid before the Tax Registration ¶

1. The registrant may recover the refundable input tax paid before the tax registration under the ta [preview truncated]...

Article 57 — Refund of Tax by Government Agencies and Charities ¶

1. Without prejudice to the general provisions o input tax refund, a Cabinet resolution, to be issue [preview truncated]...

Chapter Two: Apportionment and Adjustment of the Input Tax

Article 58 — Calculating the Refundable Input Tax ¶

The Executive Regulations of this Decree-Law shall specify the method in which the refundable input [preview truncated]...

Article 59 — Conditions and Mechanism of Input Tax Adjustment ¶

The Executive Regulations of this Decree-Law shall determine the conditions and mechanism for adjust [preview truncated]...

Chapter Three: Capital Assets Scheme

Article 60 — Capital Assets Scheme ¶

1. If a capital asset is supplied or imported by a taxable person, the latter shall assess the perio [preview truncated]...

Chapter Four: Adjustment of Tax after the Supply Date

Article 61 — Cases and Conditions for Output Tax Adjustments ¶

1. The Registrant shall adjust the output Tax after the date of supply in any of the following cases [preview truncated]...

Article 62 — Mechanism for Output Tax Adjustment ¶

The output tax shall be adjusted according to the following: 1. If the output Tax due for the supply [preview truncated]...

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 registrant issues a Tax C [preview truncated]...

Article 64 ¶

1. The registered supplier may reduce the output tax in a current tax period to adjust the output ta [preview truncated]...

Chapter Five: Tax Invoices

Article 65 — Conditions and Requirements for Issuing Tax Invoice ¶

1. The Registered supplier shall, when making a taxable supply, issue an original tax invoice and de [preview truncated]...

Article 66 — Document of Supply to an Applying State ¶

Subject to the provisions of Article (65) of this Decree-Law, each registrant who supplies goods or [preview truncated]...

Article 67 — Date of Issuance of Tax Invoices ¶

1. The Registrant shall issue the Tax Invoice within (14) days as of the date of the supply set fort [preview truncated]...

Article 68 — Rounding in Tax Invoices ¶

For the purposes of determining the tax stated in the tax invoice, the Executive Regulations of this [preview truncated]...

Article 69 — Currency Used in Tax Invoices ¶

For the purposes of the tax invoice, if the supply is made in a currency other than the UAE Dirham, [preview truncated]...

Chapter Six: Tax Credit Notes

Article 70 — Conditions and Requirements for Issuing Tax Credit Note ¶

1. The Registered Supplier shall issue an original tax credit note when there is a reduction of the [preview truncated]...

Part Eight: Tax Period, Tax Returns, Tax Payment and Refund of Tax
Chapter One: Tax Period

Article 71 — Duration of the Tax Period ¶

The Executive Regulations of this Decree-Law shall determine the tax period for which the taxable pe [preview truncated]...

Chapter Two: Tax Returns and Payment of the Tax

Article 72 ¶

1. The taxable person shall submit to the Authority the tax return at the end of each tax period, wi [preview truncated]...

Article 73 — Payment of the Tax ¶

The Executive Regulations of this Decree-Law shall determine the time limits and procedures for paym [preview truncated]...

Chapter Three: Carrying forward the Excess of Refundable Tax and Tax Refund

Article 74 — Excess Refundable Tax ¶

1. Notwithstanding the provisions of the Executive Regulations of this Decree-Law, the taxable perso [preview truncated]... [note: two Article (74) entries appear in the index, likely reflecting an amendment]

Chapter Four: Further Provisions on Tax Refund

Article 75 — Tax Refund in Special Cases ¶

The Authority may, according to the conditions, rules and procedures set forth in the Executive Regu [preview truncated]...

Part Nine: Violations and Penalties

Article 76 — Administrative Fine Assessment ¶

Without prejudice to the provisions of the Tax Procedures Law, the Authority shall issue an Administ [preview truncated]...

Article 77 — Tax Evasion ¶

Without prejudice to the Tax Evasion cases set forth in the Tax Procedures Law, if it is proved that [preview truncated]...

Part Ten: General Provisions

Article 78 — Record Keeping ¶

Without prejudice to the provisions related to record keeping contained in any other law, every taxa [preview truncated]...

Article 79 — Tax Registration Number ¶

The taxable person or any person authorized in writing thereby shall mention the Tax Registration Nu [preview truncated]...
Article (79-bis) Statute of Limitations
1. Notwithstanding the cases set forth in Clauses (2), (3), (6) and (7) of this Article, the Authori [preview truncated]...

Part Eleven: Final Provisions

Article 80 — Transitional Provisions ¶

1. If the supplier receives the Consideration or any part thereof or issues an invoice for Goods or [preview truncated]...

Article 81 ¶

The tax revenues and administrative fines to be collected in accordance with the provisions of this [preview truncated]...

Article 82 — The Executive Regulations ¶

The Cabinet shall, upon the proposal of the Minister, issue the Executive Regulations of this Decree [preview truncated]...

Article 83 ¶

Matters not stipulated herein shall be subject to the provisions of the Tax Procedures Law.

Article 84 — Repeal of Conflicting Provisions ¶

Any text or provision inconsistent or discrepant with the provisions of this Decree-Law is hereby re [preview truncated]...

Article 85 — Publishing and Entry into Force ¶

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

Translated in cooperation with