What is supply?
–If it meets the following requirements it is a supply in UAE:

• Provides Goods or Service
• In UAE
• For Some Consideration – i.e. Money or Kind (inclusive of VAT)
• By a Person

In this blog we are discussing what is the time of supply, its importance and some of its special rules with respect to UAE VAT. The time of supply is normally the earliest of the following: –

Federal Tax Authority or the FTA is a body formed by the government to administer all the taxes in UAE (starting with VAT & excise duties).
Some of the responsibilities of the FTA will include :-

The UAE government has put a lot of focus on innovation accelerators, in order to provide large scope for start-ups and offshore tech companies with employment gap especially

Categories of VAT:

It is of utmost importance that the companies are aware which products they offer fall in which categories of VAT.
Once the products are categorized companies should treat each of them differently for example:-

When goods are imported into the UAE, the place of supply is UAE. By this logic the exporter should pay VAT, however the exporter is not registered in the UAE.
So, in this case the importer must consider it as its own VAT

Here are some of the special VAT rules that we need to be aware of:-

Cut off period

When VAT is introduced companies should also take special care to decide whether a product or supply sold fall under which period, post or prior VAT. Special rules will be applied here to decide

Register for VAT

The taxable person or the legal representative has to register at the Federal Tax Authority. The FTA will issue a Tax Registration Number (TRN) for each taxable person

What is VAT?

VAT, or Value Added Tax is an indirect tax. VAT is a tax that is implemented at each step of the supply chain. VAT only affects the final consumer, the business in between simply collect the tax and give it to the government.