For the purpose of filing for VAT, sales will have to be classified on the basis of each emirate.
As explained by the FTA, emirate wise classification is not on the basis of the location of the customer. The classification is on the basis of the closest fixed establishment (your location as the supplier) related to the sale.
Fixed establishment (Executive Regulation Page 3)- Any fixed place of business, other than the Place of Establishment, in which the Person conducts his business regularly or permanently and where sufficient human and technology resources exist to enable the Person to supply or acquire Goods or Services, including the Person’s branches.
Company A has two Fixed Establishment. One located in Dubai and the other in Sharjah.
- If company A sells its products located in the Fixed establishment in Sharjah to another company in Abu Dhabi, then this sale will fall under Sharjah.
- If company A sells its products located in the Fixed establishment in Dubai to another company in Abu Dhabi, then this sale will fall under Dubai.