Lecture 2

• Supplies
• Place of Supplies
• Time of Supplies
What constitutes supply of goods and services?

Supply of goods includes:

• Transfer of ownership of goods;

• Financial leasing arrangements;

• Granting the right to use real estate property; and

• Compulsory transfer of ownership in goods for a consideration pursuant to a court order.

Supplies which are not supply of goods will be a supply of services.

Supply of goods and services – Exceptions (article 7)

• The sale or issuance of any Voucher

• Transfer of the business

Ownership Transfer

Consideration Received
Time of Supply

E
A
R • Date of Dispatch of Goods/Completion of Services
L 1
I
E
R • Date of Receipt of Payment
2
O
F

A • Date of Issuance of VAT Invoice

N 3
Y
Time of Supply

Periodic Payments Consecutive

Contracts Supply Contracts

Date of Supply would be EARLIER of the following:

1. The date of issuance of any Tax Invoice.

2. The date payment is due as shown on the Tax Invoice.
3. The date of receipt of payment.

Provided that it does not exceed one year from the date of the
provision of such Goods and Services
Time of Supply - Example

Example 1
Time of supply
Goods delivered
to customer Invoice issued

1 March 1 April
2020 2020
Example 2
Time of supply
Payment received Service Service
from customer started completed

1 March 1 April 1 May

2020 2020 2020
Place of Supply

Supply Treated as No UAE VAT

Outside UAE Applicable
Place of Supply
Rule
Supply Treated UAE VAT May Be
Inside UAE Applicable
Domestic Supply of Goods

Buyer
Domestic Supplies

− No movement of goods outside the UAE

− Subject to the applicable VAT rate in the
UAE UAE – standard or zero-rated
UAE

Seller
 Exports of Goods Outside GCC

Buyer

Exports to outside the GCC

UAE
− Export of goods: place of supply is still the UAE UK

- UAE VAT will be applicable; which would normally be zero

rated for exports

Seller
Exports to GCC

Buyer

UAE
KSA

Seller
B2B Exports to GCC

Export of goods: place of supply is the other GCC State (e.g. KSA) & No UAE VAT is applicable
rather KSA VAT will be due provided:
• The customer is registered for VAT in the GCC State where the goods are delivered
• The goods are exported outside the UAE
Place of Supply of Services (1/2)

Basic rule = where the supplier has their place of residence

Specific rules =

Place of supply of services

Place of supply of services supplied by a person that is
supplied to recipients who are not resident in the UAE to a
VAT registered in another GCC business that is resident in the
State is that other GCC State UAE is in the UAE

Place of supply of services

Place of supply of restaurant,
relating to the installation of
hotel and catering services is
goods is where the service is
where they are performed
performed
Place of Supply of Services (2/2)

Specific rules

Real Estate = the location of Transport services = where

the real estate the transport begins

Means of Transportation for Telecommunication and

Non-Registered, non-GCC electronic services = place of
person = where the goods actually used and enjoyed
are put at the disposal of by the recipient
the recipient

Cultural, artistic, sporting, educational

or similar services = Actual place of
performance