Federal Decree by Law No. (8) of 2017 Concerning Value-Added Tax (VAT) (tax law)

Article (1)  
Definitions  
For the purpose of applying the provisions of this Decree -Law, the following words and 
expressions shall have the meanings assigned thereto respectively, unless the context requires otherwise:  
State  : The United Arab Emirates.  
Minister  : The Minister of Finance.  
Authority  : The Federal Tax Authority.  
Value -Added 
Tax (VAT)  : A tax levied on the importation and supply of goods and services at every stage of production and distribution, including the 
deemed supply.  
Tax  : The Value -Added Tax.  
GCC States  : All the states which are full members of the Cooperation Council for the Arab States of the Gulf, in accordance with the GCC 
Charter.  
Applying 
States  : The GCC States which apply the Tax law under a legislative 
instrument issued thereby, and as defined by the Executive  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 3 
 Regulations of this Decree -Law.  
Goods  : Tangible properties which can be supplied, including real 
property, water and all types of energy, as defined by the 
Executive Regulations of this Decree -Law.  
Services  : Anything, other than Goods, which can be supplied.  
Importation  : Brining Goods into the State from abroad, or receiving Services 
from abroad.  
Relevant 
Goods  : Goods imported and not exempted from the Tax if supplied in the State.  
Relevant 
Services  : Services imported, whose place of supply is in the State, and not exempted from the Tax if supplied in the State.  
Person  : A natural or legal person.  
Taxable 
Person  : Each Person that is, or ought to be, registered for the tax purposes under this Decree -Law.  
Taxpayer  : Any Person that is obligated to pay the Tax in the State, pursuant 
to this Decree -Law, whether such Person is a taxable Person or an 
end consumer.  
Tax Registration  : A procedure under which the Taxable Person or the legal 
representative thereof registers for the Tax purposes at the Authority.  
Tax Registration Number 
(TRN)  : A unique number assigned by the Authority to each Person 
registered for the Tax purposes.  
Registrant  : A Taxable Person holding a Tax Registration Number.  
Recipient of 
Goods  : The Person to whom the Goods are supplied or imported.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 4 
 Recipient of 
Services  : The person to whom the Services are supplied or imported.  
Importer  : In relation to the importation of Goods, an importer is the Person who acts as the importer of Goods on the date of Importation for the purposes of customs clearance. In relation to the importation 
of Services, it means the recipient of such services.  
Taxable 
Trader  : A Taxable Person in the Applying States, whose main activity is 
the distribution of water and all types of energy, as defined by the Executive Regulations of this Decree -Law.  
Tax Return  : The information and data specified for the Tax purposes provided 
by the Taxable Person in accordance with the form prepared by 
the Authority.  
Consideratio n : Anything that has been received or expected to be received for the supply of Goods or Services, whether cash payments or any 
other forms recognized as compensation.  
Business  : Any activity that is practiced on a regular, ongoing and 
independent basis by any Person and in any place, such as 
industrial, commercial, agricultural, professional, handicraft or 
service activity, excavation activities or any activity related to the 
use of tangible or intangible properties.  
Exempted 
Supply  : The supply of Goods or Services for a Consideration during the practice of the Business within the State, which shall not be taxed 
and the input tax levied on may not be refunded except under the 
provisions of this Decree -Law.  
Taxable 
Supply  : The supply of Goods or Services for a Consideration during the practice of the Business by any Person within the State, not 
including the Exempted Supply.   
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 Deemed 
Supply  : All that is regarded as a supply and treated as a Taxable Supply, in accordance with the cases set forth in this Decree -Law.  
Input Tax  : The Tax paid or payable by a Person when Goods or Services are supplied to, or importation is made, by such Person.  
Output Tax  : The Tax levied on the Taxable Supply and on any supply which is 
deemed Taxable Supply.  
Refundable 
Tax  : Amounts paid that may be refunded by the Authority to the Taxpayer under the provisions of this Decree -Law.  
Due Tax  : The Tax that is calculated and levied under the provisions of this 
Decree- Law.  
Payable Tax  : The Tax which becomes due to be paid to the Authority.  
Tax Period  : A specific period for which the Payable Tax shall be calculated 
and paid.  
Tax Invoice  : A written or electronic document in which any Taxable Supply 
and its details are recorded  
Tax Credit Note  : A written or electronic document in which any amendment to reduce or cancel a Taxable Supply and its details are recorded.  
Government 
Agencies  : Ministries, government departments and entities and federal and local public authorities and institutions in the State, or any other 
entities receiving the treatment prescribed for Government 
Agencies, in accordance with the resolutions issued by the 
Cabinet for the purposes of applying the provisions of this 
Decree- Law.  
Charities  : Non -governmental, non- profit organizations of public welfare, 
which are determined by a Cabinet resolution to be issued upon  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 6 
 the proposal of the Minister.  
Relevant 
Charitable 
Activity  : A non -profit activity generating no benefits for any owner, 
member or shareholder of a Charity, and is performed by the Charity within its purposes or objects to carry out a charitable activity in the State or to promote such Charity, as approved by 
the relevant authorities, or pursuant to its articles of 
incorporation as a Charity under legislation, decree or federal or 
local resolution, or based on its license, to carry out a charitable 
activity through an authority granting such licenses on behalf of 
the federal government or the Emirate's government.  
Mandatory Registration 
Threshold  : An amount specified in the Executive Regulations of this 
Decree- Law and if the value of Taxable Supplies exceeds or is 
expected to exceed such amount, the supplier shall apply for the Tax Registration 
Voluntary 
Registration 
Threshold  : An amount specified in the Executive Regulations of this 
Decree- Law and if the value of Taxable Supplies or taxable 
expenses exceeds or is expected to exceed such amount, the 
supplier may apply for the Tax Registration.  
Transport -Rel
ated Services  : Cargo transport, packaging and sealing; preparation of customs 
documents; container management services and loading, 
unloading, storage and movement of goods, or any other services 
that are closely related or necessary for the completion of 
transport services.  
Business Establishment  : The place where the Business is legally established in a state, in accordance with the establishment resolution, and where 
important management decisions are taken or the functions of 
the central administration are carried out.   
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 Fixed 
Establishment  : Any fixed place of Business other than the Business Establishment, through which the Person conducts its Business 
on a regular or permanent basis and which has the sufficient 
human and technical resources necessary to enable it to supply or receive Goods or Services, including the Person's branches.  
Place of 
Residence  : The place where a Person has a Business Establishment or Fixed Establishment, in accordance with the provisions of this 
Decree- Law.  
Non -Resident 
Person  : Any person that has no Business Establishment or Fixed 
Establishment in the State and usually does not reside therein.  
Related Parties  : Two or more Persons that are not economically, financially or organizationally separated, where one of them can control the 
others either by law, shareholding or voting rights.  
Customs Legislation  : Federal and local legislation regulating customs in the State.  
Designated 
Area  : Any area identified by a Cabinet Resolution, upon the proposal of the Minister, as a Designated Area for the purposes of this 
Decree- Law.  
Exportation  : Taking Goods outside the State or providing Services to a person whose Business Establishment or Fixed Establishment is outside 
the State.  
Voucher  : Any instrument entitling the holder thereof to get access to 
Goods or Services against the value stated thereon or enclosed therein, or to obtain a discount on the price of Goods or Services, 
and it does not include postage stamps issued by the Emirates 
Post Group.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 8 
 Activities 
Performed in a 
Sovereign 
Capacity  : Activities performed by Government Agencies in their sole capacity, with or without a Consideration.  
Capital Assets  : Business assets designated for long -term use.  
Capital Assets 
Scheme  : A scheme whereby the input tax initially refunded is adjusted based on the actual use during a specific period.  
Administrative Fines  : Amounts to be imposed on the Person by the Authority for 
violating the provisions of this Decree- Law and Federal Law No. 
(7) of 2017, on Tax Procedures.  
Administrative Fine 
Assessment  : A decision issued by the Authority on due administrative fines.  
Excise Tax  : A tax levied by virtue of a law on particular Goods.  
Tax Group  : Two or more Persons registered at the Authority as a single 
Taxable Person for the tax purposes, in accordance with the 
provisions of this Decree -Law.  
Pure Hydrocarbons  : Any type of various pure compounds of a chemical formula composed only of hydrogen and carbon (Cx Hy).  
Tax Evasion  : The person's use of illegal means which cause reducing the 
amount of the Due Tax, the non- payment thereof, or the refund 
of a Tax that such Person is not entitled to refund.  
Tax Audit  : An action made by the Authority to audit business records or any 
information, data or commodities related to a Person so as to 
verify the fulfillment of their obligations, pursuant to the 
provisions of this Decree -Law or the Tax Procedures Law.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 9 
 Tax 
Assessment  : Means the Tax Assessment as defined in the Tax Procedures Law.  
Voluntary Disclosure  : A form prepared by the Authority whereby the Taxpayer notifies the Authority of any errors or omissions in the Tax Return, Tax Assessment or tax refund application, pursuant to the provisions 
of the Tax Procedures Law.  
Tax 
Procedures 
Law  : Federal Law No. (7) of 2017 , on Tax Procedures, as amended, and 
any federal law superseding the same.  
 
Part Two   
Scope 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 person.  
2. Importation of the relevant goods except for what is specified by the Executive 
Regulations of this Decree -Law.

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 on any supply or importation shall be (5%) in accordance with the provisions of 
article (2) hereof based on the value of the supply or importation specified in accordance 
with the provisions of this Decree -Law.  
  
 
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 10

Article (4) 
Responsibility for the Tax  
The responsibility for the levied tax shall fall on the following:  
1. The taxable person that makes any supply set forth in Clause (1) of article (2) of this 
Decree- Law;  
2. The importer of relevant goods;  
3. The registrant acquiring goods in accordance with the provisions of Clause (3) of Article 
(48) hereof.  
  
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 right to dispose thereof to another Person, as 
determined by the Executive Regulations of this Decree -Law.  
2. Concluding an agreement between two or more parties, which entails the transfer of 
Goods later, under the conditions laid down in the Executive Regulations of this 
Decree- Law.

Article (6)  
Supply of Services  
Each supply not considered a supply of goods shal l be deemed as a supply of services, 
including any provision of services in accordance with what is determined in the Executive 
Regulations of this Decree -Law.  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 11

Article (7) 
Supply in Special Cases  
Notwithstanding the provisions contained in Articles (5) and (6) of this Decree -Law, the 
following shall not be deemed as a supply:  
1. Selling or issuing any Voucher, unless the received Consideration exceeds its declared 
cash value, as determined by the Executive Regulations of this Decree -Law;  
2. Transferring Business or independent part thereof from a Person to a Taxable Person to 
continue such transferred Business; and  
3. Any other supply identified by the Executive Regulations of this Decree -Law

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 supply composed of more than one component for a single price, whether such 
components are goods and/or services.

Article (9)  
Supply by an Agent  
1. Where goods and services are supplied by an agent acting on behalf of a principal, the supply shall be deemed to be made by the principal and for his benefit.  
2. Where goods and services are supplied through an agent acting in his own name, the supply shall be treated as a direct supply by the agent and for his benefit.

Article (10)  
Supply by Government Agencies  
1. The government agency shall be deemed as making a supply in the course of business in the following cases:  
a. If its activities are performed in a non -sovereign capacity.   
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 b. If its activities are in competition with the private sector.  
2. The Cabinet shall issue a resolution, upon the proposal of the Minister, which shall 
determine the government agencies, their activities considered to be performed in a 
sovereign capacity and the cases where their activities are considered not in competition with the private sector.  
  
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 whole assets of the taxable person or part thereof, but such goods or services no longer form part of the assets, provided that the supply is made for no consideration.  
2. Transfer of goods forming part of the business assets of a taxable person in the State to 
his business in one of the applying states, or from the taxable person's business in an 
applying state to his business in the State, except in the case where such transfer is:  
a. deemed temporary pursuant to the Customs Legislation.  
b. made as part of another taxable supply of such goods.  
3. Supply of goods or services for which input tax may be recovered but they have been 
used in whole or in part for purposes other than the business, and such supply shall be 
regarded as deemed supply within the limits of use for non- business purposes.  
4. Goods and services owned by the taxable person at the date of cancellation of tax 
registration.

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 input tax for the related goods and services is not refunded.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 13 
 2. If the supply is an exempted supply.  
3. If the refunded input tax on the goods and services is adjusted in accordance with the 
Capital Assets Scheme.  
4. If the value of the supply of goods, for each recipient during the period of twelve months, 
does not exceed the amount determined by the Executive Regulations of this 
Decree- Law and the supply is intended to use such goods as samples or commercial 
gifts.  
5. If the total output tax payable for all the deemed supplies per person for the period of 
twelve months is less than the amount specified by the Executive Regulations of this 
Decree- Law.  
  
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 register for the Tax if:  
a. The value of the supplies set forth in article (19) hereunder exceeds, during the previous (12) twelve -month period, the Mandatory Registration Threshold; or  
b. It is expected that the value of the supplies set forth in article (19) hereunder will 
exceed the Mandatory Registration Threshold during the next (30) thirty days.  
2. Every Person who does not have a Place of Residence in the State or in one of the 
Applying States shall register for the Tax if such Person makes supplies of Goods or Services and no other Person obligated to pay the Due Tax for such supplies is in the State.  
3. The Executive Regulations of this Decree -Law shall determine the time limits during 
which the Person shall notify the Authority of the necessity to register for the Tax and 
the effective date of the Tax Registration.  
   
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Article (14)  
Tax Group  
1. Two or more persons practicing the business may apply for the tax registration as a tax 
group if the following conditions are satisfied:  
a. Each of them shall have a business establishment or fixed establishment in the State.  
b. The relevant persons shall be related parties.  
c. One or more persons practicing the business in a partnership shall control the others.  
2. The Executive Regulations of this Decree -Law shall define the cases where the Authority 
may reject the application for registering the tax group.  
3. No person who practices the business shall have more than one Tax Registration 
Number, unless otherwise provided for in the Executive Regulations.  
4. If the related parties fail to apply for the tax registration as a tax group in accordance 
with Clause (1) of this Article, the Authority may assess their relation based on their 
practice of the business on an economic, financial and organizational basis and register 
the same as a tax group if it verifies their relation in accordance with the controls and 
conditions established by the Executive Regulations of this Decree -Law.  
5. The Authority may cancel the registration of the tax group under the provisions 
contained in this Article, in accordance with the conditions laid down in the Executive 
Regulations of this Decree -Law.  
6. The Authority may make amendments to those registered as a tax group by adding or 
removing some persons, upon request of the taxable person or in accordance with the 
cases set out in the Executive Regulations.

Article (15)  
Exemption from the Registration  
1. The Authority may exempt the Taxable Person, whether registered or unregistered, from 
the Tax Registration, upon their request, if their supplies are zero -rated only.  
2. If any changes to the business of the Taxable Person who is exempted from the Tax Registration occur, pursuant to Clause (1) above, and lead, or would lead, to the  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 15 
 elimination of the reason based on which they have been exempted, they shall notify the 
Authority of such changes within the time limits and according to the procedures 
identified by the Executive Regulations of this Decree -Law.  
3. The Authority shall be entitled to collect the Due Tax and the Administrative Fines for 
the period of exemption if it found that the Taxable Person is not entitled to be 
exempted.

Article (16)  
Tax Registration of Government Agencies  
Government agencies to be determined by the Cabinet resolution referred to in Clause (2) of 
article (10) of this Decree -Law shall apply for the tax registration and such registration may 
not be cancelled except under a Cabinet resolution to be issued upon the proposal of the 
Minister.

Article (17)  
Voluntary Registration  
Any person who is not liable to be registered in accordance with the provisions of this Part 
may apply for the tax registration voluntarily in the following cases:  
1. If such person proves, at the end of any given month, that the value of supplies set forth 
in article (19) hereof or the taxable expenses incurred during the previous twelve 
months has exceeded the Voluntary Registration Threshold.  
2. If it is expected, at any time, that the value of supplies set forth in article (19) hereof or 
the taxable expenses to be incurred during the next thirty days will exceed the Voluntary 
Registration Threshold.

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 purpose of determining whether he is entitled to be registered if the calculation of tax  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 16 
 for such goods and services is the responsibility of the importer in accordance with the 
provisions of Clause (1) of article (48) of this Decree -Law.

Article (19)  
Calculating the Tax Registration Threshold  
For the purpose of determining whether a person exceeds the Mandatory Registration Threshold and the Voluntary Registration Threshold, the total value of the following shall be 
calculated:  
1. The value of taxable goods and services.  
2. The value of relevant goods and relevant services received by the person if not 
calculated under Clause (1) of this Article.  
3. The value of the whole or relevant part of taxable supplies belonging to such person if he 
acquires, in whole or in part, a business of a person who has made such supplies.  
4. The value of taxable supplies made by related parties according to the cases defined by 
the Executive Regulations of this Decree -Law.

Article (20)  
Capital Assets  
The supply of capital assets belonging to the person during practicing the business shall be 
disregarded when determining whether a person exceeds the Mandatory Registration 
Threshold or the Voluntary Registration Threshold.

Article (21)  
Cases of Tax Deregistration  
1. The Registrant shall submit to the Authority an application for the Tax deregistration in 
any of the following cases:  
a. If he ceases to make Taxable Supplies.  
b. If the value of the Taxable Supplies made during the period of (12) twelve 
consecutive months is less than the Voluntary Registration Threshold, and the case  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 17 
 set out in Clause (2) of article (17) of this Decree -Law is not applicable to him.  
2. The Authority may issue a Tax deregistration decision where it is convinced that the 
retention of tax registration would adversely affect the tax system's integrity, pursuant to 
the conditions and controls set forth in the Executive Regulations of this Decree -Law.  
3. The Tax deregistration shall not invalidate the Authority's right to claim any tax due or 
administrative fines.

Article (22)  
Applying for Cancellation of Tax Registration  
The registrant may submit to the Authority an application for cancellation of tax registration 
if the value of the taxable supplies made during the period of previous twelve months is less 
than the Mandatory Registration Threshold.

Article (23)  
Voluntary Tax Registration Cancellation  
The registrant shall not be entitled, pursuant to article (17) hereof, to submit an application 
for cancellation of his tax registration within twelve months as of the date of his tax 
registration.

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 of the tax registration, cancellation thereof and rejection of applications for tax registration and its cancellation as set forth in this Part.  
  
 
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 18 
 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 date of any of the following:  
1. The date of transferring the goods if they are transferred under the supervision of the 
supplier.  
2. The date on which the goods are made available to the recipient if they are not 
transferred under the supervision of the supplier.  
3. The date on which the assembly or installation of goods is completed if there is an obligation to install and assemble the supplied goods.  
4. The date on which the goods are imported in accordance with the Customs Legislation.  
5. The date on which the recipient accepts the supply, or no later than twelve (12) months following the date on which the goods are transferred or made available to the recipient, 
if the supply id made on a returnable basis.  
6. The completion date of providing the services.  
7. The date of receiving the payment or the date of issuing the tax invoice.

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 consecutive invoices shall be the earliest date of the following:  
a. The date of issuing any tax invoice;  
b. The maturity date of the amount stated in the tax invoice;  
c. The date of receiving the paid amount; or   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 19 
 d. The date on which a year has lapsed following the date of supplying the goods or 
services.  
2. The date of supply, in cases where payment is made through vending machines, shall be the date on which the amount is collected from such machines.  
3. The date of Deemed Supply of Goods or Services shall be the date of their supply, 
disposal thereof, change of their use purposes or Tax deregistration, as the case may be.  
4. The date of supply of Vouchers shall be the date of their issuance or supply thereafter."  
  
Chapter Two   
Place of Supply

Article (27)  
Place of Supply of Goods  
The place of supply of Goods shall be in the State if such supply is made in the State and 
does not involve Exportation from or Importation into the State.  
2. The place of supply of installed or assembled Goods if exported from or imported to the 
State shall be:  
a. In the State if such Goods are assembled or installed in the State.  
b. Outside the State if such Goods are assembled or installed outside the State.  
3. The place of su pply of Goods that involves Exportation or Importation shall be as 
follows:  
a. Inside the State in the following cases:  
i. If the supply involves Exportation to a place outside the Applying States;  
ii. If the Recipient of Goods in an Applying State is not registered for the Tax in the 
state of destination, and the total exports from the same supplier to such state 
does not exceed the Mandatory Registration Threshold of such state;  
iii. If the Recipient of Goods does not have a Tax Registration Number in the State 
and the total exports from a supplier in an Applying State to the State exceeds the 
Mandatory Registration Threshold; and  
iv. If article (26.1) above is applicable and the title to Goods is transferred inside the  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 20 
 State.  
b. Outside the State in the following cases:  
i. If the supply involves Exportation to a customer registered for the Tax purposes 
in one of the Applying States.  
ii. If the Recipient of Goods is not registered for the Tax purposes in one of the 
applying state to which Exportation is made, and the total exports from the same 
supplier to such state exceeds the Mandatory Registration Threshold of such state.  
iii. If the Recipient of Goods does not have a Tax Registration Number and imports Goods from a supplier registered for the Tax in an Applying State from which 
importation is made, and the total imports from the same supplier to the State do 
not exceed the Mandatory Registration Threshold.  
4. Goods shall not be treated as exported outside the State and then re -imported thereto if 
such Goods are supplied in the State and the supply requires sending the Goods outside the State and then the re -entry thereof into the State, as per the cases defined by the 
Executive Regulations of this Decree -Law.

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 through a distribution system, shall be deemed to be made in the place of 
residence of the taxable trader if the distribution is carried out by a taxable person whose place of residence in the State to a taxable trader whose place of residence in an 
applying state.  
2. The s upply of water and types of energy defined by the Executive Regulations of this 
Decree- Law through a distribution system, shall be deemed to be made at the place of 
actual consumption if the distribution is carried out by a taxable person to a non- taxable 
person.  
   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 21

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 cases shall be as follows:  
1. If the Recipient has a place of residence in an Applying State and is registered for the tax 
purposes therein, the place of supply shall be the place of residence of the Recipient.  
2. If the Recipient is a Person practicing the Business and has a place of residence in the 
State, and the supplier does not have a place of residence in the State, the place of supply 
shall be in the State.  
3. In case of the supply of Services related to Goods, such as t he Services of installation 
related to Goods supplied by others, the place of supply shall be the place where such 
Services are performed.  
4. If the supply is leasing means of transport to a lessee who is a Untaxable Person in the 
State and does not have a Tax Registration Number in an Applying State; the place of 
supply shall be the place where such means of transport are made available to the 
lessee.  
5. In case of the supply of restaurant, hotel, and food and drink catering services; the place of supply shall be the place where such Services are actually performed.  
6. In case of the supply of any cultural, artistic, sporting or educational Services or any 
similar Services; the place of supply shall be the place where such services are 
performed.  
7. In case of the supply of Services related to a real property, as determined by the Executive Regulations of this Decree -Law, the place of supply shall be the place where 
such real property is located.  
8. In case of the supply of transport Services or transport -related services, the place of  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 22 
 supply shall be where the transport starts. The Executive Regulations of this Decree -Law 
shall determine the place of supply of transport services if the trip includes more than 
one stop.

Article (31)  
Place of Supply of Telecommunication and Electronic Services  
1. The place of supply of telecommunications and electronic services stated in the 
Executive Regulations of this Decree -Law shall be as follows:  
a. Inside the State, if such services are used and enjoyed therein, to the extent of such 
use and enjoyment.  
b. Outside the State, if such services are used and enjoyed outside the State, to the 
extent of such use and enjoyment.  
2. The actual use and enjoyment of telecommunications and electronic services shall be where such services are used regardless of the place of contract or payment.  
  
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 business establishment of the person is located or where he has a fixed establishment, provided that he does not have a business establishment or fixed 
establishment in any other state.  
2. The state where the business establishment of the person is located or where he has a 
fixed establishment, which is the most directly concerned with the supply if the business 
establishment is located in more than one state or he has fixed establishments in more 
than one state.  
3. The state where the usual place of residence of the person is located if he has no business establishment or fixed establishment in any state.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 23

Article (33) 
Agents  
The Place of Residence of the agent shall be the Place of Residence of the principal in the 
following cases:  
1. If the agent exercises, on a regular basis, the right of negotiation and entering into agreements on behalf of the principal.  
2. If the agent keeps a stock of Goods to fulfill agreements for the supply thereof in favour 
of the principal regularly.  
  
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 supply is for a cash consideration in whole, the value of the supply shall be 
the consideration less the tax.  
2. Where the supply is for a consideration not in cash or a consideration not wholly in cash, 
the value of the supply shall be calculated as the overall cash part plus the market rate of 
the non -cash part of the consideration, and shall not include the tax.  
3. In case of services received by the taxable person who is required to calculate the tax in 
accordance with Clause (1) of article (48) of this Decree -Law, the value of the supply 
shall be equal to the market rate of the consideration without addition of the tax 
chargeable on such supply.  
4. If the consideration is related to matters other than the supply of goods or services, the 
supply shall be deemed to be for the part of the consideration as is properly attributable 
to the supply as determined in the Executive Regulations of this Decree -Law.  
The Executive Regulations of this Decree -Law shall determine the rules of defining the 
market rate.  
   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 24

Article (35)  
Importation Value 
The value of imported goods shall consist of:  
1. The value of the goods for the customs purposes in accordance with the Customs 
Legislation, including the value of insurance, freight, any customs duties and any excise 
taxes to be paid on the importation of goods. The tax shall not be included in the value 
of supply.  
2. If it is not possible to determine the value of supply according to Clause (1) of this Article, the value shall be determined based on the alternate valuation rules set forth in the 
Customs Legislation.

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 supply or Importation of Goods or Services between the Related Parties shall be 
considered equal to the market rate if all the following conditions are fulfilled:  
1. The value of the supply is less than the market rate.  
2. If the supply is taxable and the Recipient of Goods or Recipient of Services is not entitled 
to recover the full Tax to be levied on such supply as an Input Tax.

Article (37)  
Value of Deemed Supply  
Notwithstanding the provisions of Articles (34) and (35) of this Decree -Law, in case of the 
deemed supply, when the taxable person purchases goods or services to make taxable supplies but he does not use the same for such purpose, the value of the supply shall be 
equal to the total cost incurred by the taxable person to make such deemed supply of goods 
or services.  
   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 25

Article (38)  
Tax -Inclusive Prices  
The declared prices shall inclu de the tax in case of the taxable supplies. The Executive 
Regulations of this Decree -Law shall determine the cases where prices do not include the 
tax.

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 to the supplier for such supply, the value of such supply shall be reduced in 
proportion to such discounts or subsidies.  
The Executive Regulations of this Decree -Law shall establish the conditions and rules of 
calculating the tax when the discount is made.

Article (40)  
Value of Supply of Vouchers  
The value of the supply of any voucher shall be the difference between the consideration received by the supplier of the voucher and the declared cash value of the voucher.

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 State shall be the amount shown on the postage stamp.

Article (42)  
Temporary Transfer of Goods  
If the goods are transferred temporarily from the local markets to a designated area or 
outside the State to complete their manufacture or their repair for the purpose of  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 26 
 re-importing the same to the State, the value of the supply, when re -imported, shall be the 
value of the services performed.  
  
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 profit margin earned on the taxable supplies determined in the Executive 
Regulations of this Decree -Law and not on the basis of the value of such supplies, and 
shall notify the Authority thereof.  
2. The Executive Regulations of this De cree- Law shall establish the conditions to be met for 
the application of the provisions of this Article.  
  
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 person shall be a zero –rated supply.

Article (45)  
Zero -Rated Goods and Services  
The zero rate shall apply to the following Goods and Services:  
1. The direct or indirect Exportation to outside the Applying States, as determined by the Executive Regulations of this Decree -Law.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 27 
 2. Services of  international transport of passengers and Goods, which starts or ends in the 
State or passes through its territories, including Services related to such transport.  
3. The air passenger transport inside the State if such transport is deemed to be 
"international carriage" in accordance with article (1) of the Warsaw Convention for the Unification of Certain Rules Relating to International Carriage by Air signed in 1929.  
4. The supply or Importation of air, sea and land means of transport used to transport 
passengers and Goods in accordance with the classification and conditions set forth in 
the Executive Regulations of this Decree -Law.  
5. The supply of Goods or Services or the Importation of Relevant Goods related to the 
means of transport set out in Clause (4) of this Article, which are designated for the 
operation, repair, maintenance or transformation thereof.  
6. The supply or Importation of rescue aircraft and salvage ships for rescue and assistance 
by air or sea.  
7. The supply of Goods and Services related to Services of the transport of Goods or 
Passengers aboard land, air or sea means of transport, in accordance with the provisions 
of Clauses (2) and (3) of this Article, which are designated for consumption on board; or 
anything consumed by any means of transport, any installations or addition thereto or 
any other use during the transport process.  
8. The supply or importation of investment precious metals for investment purposes. The 
Executive Regulations of this Decree -Law shall determine the precious metals and the 
standards based on which they are deemed to be investment.  
9. The first supply of residential buildings within (3) years, as of the date of completion of 
construction, either through selling or leasing the same in whole or in part, in accordance 
with the rules established by the Executive Regulations of this Decree -Law.  
10. The first supply of buildings designed specifically to be used by Charities through selling 
or leasing the same, in accordance with the rules established by the Executive 
Regulations of this Decree -Law.  
11. The first supply of buildings transformed from non -residential buildings to residential 
ones through selling or leasing the same, in accordance with the conditions laid down in  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 28 
 the Executive Regulations of this Decree -Law.  
12. The supply or importation of crude oil and natural gas.  
13. The supply of educational services and Related Goods and Services for nurseries, 
preschool, elementary education, and higher educational institutions owned or funded by the federal or local government, as determined by the Executive Regulations of this 
Decree- Law.  
14. The supply of preventive and basic health care services and Related Goods and Services, 
as determined by the Executive Regulations of this Decree -Law.  
  
Chapter Two   
Exemptions

Article (46)  
Exempted Supply  
The following supplies shall be exempted from the Tax:  
1. The supply of financial Services as specified in the Executive Regulations of this 
Decree- Law.  
2. The supply of residential buildings through selling or leasing the same, except for those 
zero- rated, in accordance with Clauses (9) and (11) of article (45) of this Decree -Law.  
3. The supply of vacant lands.  
4. The supply of local passenger transport.  
The Executive Regulations of this Decree -Law shall establish the conditions and controls for 
exempting the supplies mentioned in the preceding Clauses from the Tax.  
  
Chapter Three   
Single Supply and Mixed Supplies

Article (47)  
Supply Composed of more than one Component  
The Executive Regulations of this Decree -Law shall establish the controls for determining  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 29 
 the tax treatment of any supply composed of more than one component for a single price, if 
each component is subject to a different tax treatment.  
  
Chapter Four   
Special Obligations for Calculating the Tax

Article (48)  
Reverse Char ge 
1. If the Taxable Person imports the relevant Goods or relevant Services for the purposes of the Business thereof, such Person shall be deemed to have made a taxable supply by 
himself and shall be responsible for all the Tax obligations and calculating the Due Tax 
thereon.  
2. Notwithstanding the provisions of Clause (1) of this Article, in case that the final 
destination of the Goods when entering the State is another Applying State, the Taxable 
Person shall pay the Due Tax on Importation of relevant Goods according to the 
mechanism specified in the Executive Regulations of this Decree -Law.  
3. If a Registrant makes a taxable supply in the State of any crude or refined oil, 
unprocessed or processed natural gas or Pure Hydrocarbons to another Registrant and 
the Recipient of Goods intends to either resell the purchased Goods as crude or refined oil, unprocessed or processed natural gas or Pure Hydrocarbons, or use the same to 
produce or distribute any type of energy, the following rules shall apply:  
a. The Registrant making the supply shall not charge the Tax on the value of the supply 
of Goods stated in this Paragraph.  
b. The Recipient of Goods shall calculate the Tax on the value of Goods supplied thereto and shall be responsible for all Tax obligations and calculating the due tax 
thereon.  
4. The provisions of Clause (3) of this Article shall not apply to any of the following cases:  
a. If the Recipient of such Goods fails, before the date of supply, to submit a written 
confirmation to the supplier that his acquisition of the Goods is for the purpose of 
resale or to be used for producing and distributing any type of energy.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 30 
 b. If the Recipient of such Goods fails, before the date of supply, to submit a written 
confirmation to the supplier that he is a Registrant and the supplier fails to verify the 
Tax Registration of the Recipient of such Goods by the means approved by the 
Authority, in accordance with the data contained in the confirmation.  
c. If the taxable supply is zero -rated, in accordance with Clause (1) of article (45) of this 
Decree- Law.  
d. If the taxable supply includes a supply of Goods or Services other than the Goods set 
out in Clause (3) of this Article.  
5. If the Recipient of any Goods of crude or refined oil, unprocessed or processed natural 
gas, or Pure Hydrocarbons confirms in writing to the supplier that he is a Registrant for 
the purposes of applying Clause (3) of this Article, the following shall apply:  
a. The supplier shall not be responsible for calculating the tax related to the supply 
unless he knows or is supposed to know that the Recipient is not a Registrant on the 
date of supply.  
b. The recipient shall be obligated to calculate the Due Tax for the supply.  
6. If the supplier mentioned in Paragraph (a) of Clause (5) of this Article is supposed to know that the Recipient of Goods is not registered for tax purposes on the date of 
supply, the supplier and Recipient of Goods shall be jointly and severely liable for the 
Due Tax and relevant fines in relation to the supply.  
7. The Executive Regulations of this Decree -Law shall determine the following:  
a. Conditions and cases of applying the mechanism set out n Clause (1) of this Article.  
b. Additional duties related to record keeping for calculation of the Tax according to the 
mechanism set out in Clause (1) of this Article.  
c. The Cabinet may issue a resolution identifying other Goods or Services that are subject to the reverse charge mechanism, along with identifying terms and 
conditions related thereto.  
  
 
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 31

Article (49)  
Importation of Relevant Goods  
The person other than the registrant shall pay the due tax on the importation of relevant 
goods from outside the applying states at the date of importation according to the payment 
mechanism specified by the Executive Regulations of this Decree -Law.  
  
Chapter Five  
Designated Areas

Article (50)  
Designated Area  
The "Designated Area" that meets the conditions established in the Executive Regulations of 
this Decree- Law shall be treated as being outside the State.

Article (51)  
Transfer of Goods in Designated Areas  
1. Goods may be transferred from one designated area to another designated area without any tax due thereon.  
2. The Executive Regulations of this Decree -Law shall determine the procedures and 
conditions for the transfer of goods from and to a designated area and the method of 
maintaining, storing and processing such goods therein.

Article (52)  
Exceptions for Designated Areas  
Notwithstanding the provisions of article (50) of this Decree -Law, the Executive Regulations 
of this Decree -Law shall establish the conditions under which the business practiced in the 
designated areas shall be deemed to be practiced inside the State.  
  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 32 
 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 
payable in accordance with the provisions of this Decree -Law, made during the tax period 
less the total refundable input tax by the taxable person during the same tax period.

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 of the input tax paid for goods and services used or intended to be used for making 
any of the following:  
a. Taxable Supplies;  
b. Supplies to be made outside the State when being taxable supplies if they are made 
in the State.  
c. Supplies specified in the Executive Regulations of this Decree -Law that are made 
outside the State, and would have been treated as exempted from the tax if they are 
made inside the State.  
2. If a taxable person imports goods through another applying state and the intended final 
destination of such goods is the State at the time of importation, the taxable person shall 
be entitled to treat the tax paid for importation of goods to the applying state as a 
refundable input tax under the conditions specified in the Executive Regulations of this 
Decree- Law.  
3. If a taxable person transfers goods to the State after being imported thereto in an applying state, the taxable person shall be entitled to treat the tax paid for the goods in  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 33 
 the applying state as a refundable input tax subject to the conditions specified in the 
Executive Regulations of this Decree -Law.  
4. The taxable person shall not be entitled to recover the input tax in respect of the tax paid in accordance with Clause (2) of article (48) of this Decree -Law.  
5. The Executive Regulations of this Decree -Law shall determine the cases where the input 
tax is excepted from being refunded.

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 deducted under the Tax Return relating to the first Tax Period in which the 
following conditions are met:  
a. Where any of the following cases are fulfilled:  
i. The Taxable Person receives and keeps the Tax Invoice, in accordance with the 
provisions of this Decree -Law, provided that the tax invoice contains the details 
of the supply related to the input tax, or keeps any other document, pursuant to Clause (3) of article (65) of this Decree -Law in respect of the supply for which the 
input Tax is paid.  
ii. The Taxable Person imports Goods and receives and keeps invoices and importation documents, pursuant to the provisions of this Decree -Law and the 
Executive Regulations thereof, for the Importation for which the Input Tax has 
been paid or stated in the Tax Return.  
iii. The Taxable Person imports Ser vices and receives and keeps invoices, pursuant 
to the provisions of this Decree -Law and the Executive Regulations thereof, for 
the importation on which the input Tax has been stated in the Tax Return.  
b. The Taxable Person pays the Consideration or any part thereof, as determined in the Executive Regulations of this Decree -Law.  
2. If the Taxable Person entitled to recover the input Tax fails to do so during the Tax Period 
in which the conditions stated in Clause (1) of this Article are met, he may include the  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 34 
 refundable input Tax in the Tax Return for the subsequent Tax Period.

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 tax return submitted for the first Tax Period following the tax registration, paid 
for all of the following:  
a. Supply of goods and services made to him prior to the date of tax registration.  
b. Importation of goods by him prior to the date of tax registration. on the condition that such goods and services are used to make supplies that give the right to refund 
after the tax registration.  
2. Notwithstanding the provisions of Clause (1) of this Article, the input tax may not be 
refunded in any of the following cases:  
a. Receiving goods and services for purposes other than making taxable supplies.  
b. The input tax related to the depreciated part of the Capital Assets before the date of 
tax registration.  
c. If the services are received more than five years prior to the date of tax registration.  
d. If a person transfers the goods to an applying state prior to the tax registration in the 
State.

Article (57)  
Refund of Tax by Government Agencies and Charities  
1. "Without prejudice to the general provisions o input tax r efund, a Cabinet resolution, to 
be issued upon the proposal of the Minister, shall determine the Government Agencies 
and Charities entitled to recover the full amount of the input Tax according to the 
following:  
a. The Input Tax paid by the Government Agency for the purposes of its sovereign 
activities.  
b. The Input Tax paid by the Charity for the purposes of its relevant Charitable Activity.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 35 
 2. Notwithstanding the provisions of Clause (1) above, the following shall be excluded 
from the refund:  
a. The Tax excluded from refund, in accordance with the provisions of the Executive Regulations of this Decree -Law.  
b. The Tax paid for Goods and Services used to make exempted supplies."  
  
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 tax is calculated, if the input tax is paid for goods or services during a specific tax period to make supplies that give the right to refund pursuant to the provisions of article (54) and other supplies that do not give the right to refund, or for activities 
performed not in the course of practicing the business.

Article (59)  
Conditions and Mechanism of Input Tax Adjustment  
The Executive Regulations of this Decree -Law shall determine the conditions and 
mechanism for adjusting the input tax in the following cases:  
1. If the taxable person attributes the Input Tax, either fully or partially, to make Taxable 
Supplies, but changed the use, or the intended use, of those Goods or services prior to 
making the Taxable Supplies.  
2. If the taxable person attributes the Input Tax, either fully or partially, to make Exempt 
Supplies, or for activities that do not fall within the conduct of Business, but changed the use or the intended use of the those goods or services related to the Input Tax prior to 
making Exempt Supplies.  
  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 36 
 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 
period of use of such asset and make the necessary adjustments to the Input Tax paid 
pursuant to the Capital Assets Scheme.  
2. A taxable person shall keep the records related to capital assets for at least ten years.  
3. The Executive Regulations of this Decree -Law shall determine the following:  
a. Capital assets subject to the provisions of this Decree -Law and their estimated useful 
life. 
b. The method of adjusting capital assets and the periods for which adjustments should 
be made.  
c. The cases where the period for keeping records of capital asset records is extended.  
  
Chapter Four   
Adju stment of Tax after the Supply Date

Article (61)  
Cases and Conditions for Output Tax Adjustments 
"The Registrant shall adjust the output Tax after the date of supply in any of the following cases:  
a. If the supply is cancelled.  
b. If the Tax treatment of the supply is changed due to a change in the nature of the 
supply.  
c. If the previously agreed Consideration for the supply is altered for any reason whatsoever.  
d. If the Recipient of Goods or Recipient of Services returned them to the Registrant in 
full or in part and the Consideration is returned in full or in part.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 37 
 e. If the tax is levied or tax transaction is applied erroneously.  
2. Paragraph (e) of Clause (1) of this Article shall not apply where the place of supply was 
treated by the supplier on the date of supply as being subject to Clause (1) of article (27), 
but, as a result of a movement of the Goods, it turned out that it should have been treated as a supply place under paragraph (b/1) of Clause (3) hereof.  
3. In order to adjust the output Tax, any of the following conditions shall be met:  
a. If the output Tax amount charged on the supply stated in the Tax Invoice does not 
match the Tax that shall actually be charged on the supply as a result of any of the 
cases mentioned in Clause (1) of this Article.  
b. If the Registrant submits a Tax Return for the tax period during which the supply 
occurred and an amount was incorrectly calculated as being the amount of the 
output Tax due for this supply as the result of any of the cases mentioned in Clause 
(1) of this Article."

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 exceeds the output Tax calculated by the Registrant, 
the Registrant shall issue a new Tax Invoice and shall calculate the additional amount of 
the Payable Tax during the period which such an increase was identified.  
2. If the output Tax calculated by the Registrant exceeds the output Tax which should have 
been charged on the supply, the Registrant shall issue a Tax Credit Note according to the provisions of this Decree -Law, not later than (14) fourteen days of the date on which any 
of the cases set out in Clause (1) of article (61) hereof occurs.

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 Credit Note to correct output tax charged to the recipient of goods or recipient of  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 38 
 services, the tax stated in the Tax Credit Note shall be considered as:  
1. A reduction of the output tax for the registrant of this tax credit note.  
2. A reduction of the Input Tax by the recipient of goods or recipient of services for the Tax 
Period during which the tax credit note was received.

Article (64)  
Adjustment of Bad Debts  
1. The registered supplier may reduce the output tax in a current tax period to adjust the output tax paid for any previous tax period if all of the following conditions are met:  
a. Goods and services are supplied and the due tax is charged and paid.  
b. the consideration for the supply is written off in full or part as a bad debt in the 
accounts of the supplier.  
c. The lapse of more than six (6) months following the date of supply.  
d. The registered supplier notifies the recipient of goods and recipient of services of the amount of consideration for the supply that has been written off.  
2. The registered recipient of goods or recipient of services shall reduce the refundable 
input tax for the current tax period related to a supply received during any previous tax 
period where the consideration has not been paid and all of the following conditions are 
met:  
a. The registered supplier reduced the output tax as stated in Clause (1) of this Article 
and the recipient of goods and the recipient of Services has received a notification from the supplier of the Consideration being written off.  
b. The recipient of goods and recipient of services received the Goods and services and 
the relevant Input Tax was deducted.  
c. The Consideration was not paid in full or in part for the supply for over (6) six 
months.  
3. The reduction stated in Clause (1) and (2) shall be equal to the Tax related to the 
consideration which has been written off according to paragraph (b) of Clause (1) of this 
Article.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 39 
 Chapter Five  
Tax Invoices

Article (65)  
Conditions and Requirements for Issuing Tax Invoices  
1. "The Registrant shall, when making a Taxable Supply, issue an original Tax Invoice and 
deliver it to the Recipient of Goods or Services.  
2. The Registrant shall, when making a Deemed Supply, issue an original Tax Invoice and 
deliver it to the Recipient of Goods or Services, if any, or keep it in his records if there is no Recipient of Goods or Services.  
3. The Executive Regulations of this Decree -Law shall determine the following:  
a. The data to be included in the Tax Invoice.  
b. The conditions and procedures necessary for the issuance of an electronic Tax Invoice.  
c. The cases where the Registrant is not obligated to issue and deliver a Tax Invoice to the Recipient.  
d. The cases where other documents may be issued instead of the Tax Invoice, the 
conditions thereof and the data to be contained therein.  
e. The cases where a Person may issue a tax invoice on behalf of the registered supplier.  
4. Any Person receiving any amount as Tax or for which a Tax Invoice is issued shall pay 
such amount to the Authority, and shall receive the same Tax treatment of the tax due 
under the provisions of this Decree -Law."

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 services considered to be supplied in any of the applying states, shall deliver to the 
recipient of goods and services a document containing all the information to be stated in the 
tax invoice and any other data as specified in the Executive Regulations of this Decree -Law, 
provided that such document is not titled "Tax Invoice" and does not contain any levied tax  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 40 
 amount.

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 
forth in article (25) and (26) of this Decree -Law.  
2. The Executive Regulations of this Decree -Law shall identify the cases that are subject to 
time limits other than the ones stated in Clause (1) above, or cases where the Tax Invoice shall be promptly issued, as per the controls set forth therein.

Article (68)  
Rounding in Tax Invoices  
For the purposes of determining the tax stated in the tax invoice, the Executive Regulations 
of this Decree -Law shall define the method of calculation and the total value to be paid if the 
tax is less than one fils of a UAE Dirham.

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, the amount stated in the tax invoice shall be converted into the UAE Dirham 
according to the exchange rate approved by the Central Bank in the State at the date of the 
supply.  
  
Chapter Six  
Tax Credit Notes

Article (70)  
Conditions and Requirements for Issuing Tax Credit Notes  
1. The Registrant shall issue an original tax credit note when there is a reduction of the  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 41 
 output tax on any supply made thereby pursuant to the provisions of Clause (2) of 
article (62) of this Decree -Law and shall deliver the same to the recipient of goods or 
recipient of services.  
2. The registrant shall, when making a deemed supply, issue an original tax credit note if there is a reduction of the output tax on such supply pursuant to the provisions of Article 
(61) of this Decree -Law and shall keep the same in his records.  
3. The Executive Regu lations of this Decree -Law shall determine the following:  
a. The basic data to be included in the tax credit note in cases where the taxable person 
is obligated to issue such note.  
b. The conditions and procedures necessary for the issuance of an electronic tax credit 
note.  
c. The cases where the registrant is not obligated to issue and deliver a tax credit note 
to the recipient of goods or services.  
d. The cases where other documents may be issued in instead of the tax credit note, the 
conditions thereof and the data to be included therein.  
e. The cases where a person may issue a tax credit note on behalf of the registered supplier.  
  
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 person shall calculate and pay the tax and the exceptional cases in which the 
Authority may amend the tax period.  
  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 42 
 Chapter Two   
Tax Returns and Payment of the Tax

Article (72)  
Submission of Tax Returns  
1. The taxable person shall submit to the Authority the tax return at the end of each tax 
period, within the time limits and in accordance with the procedures determined by the 
Executive Regulations of this Decree -Law to declare all the supplies made or received 
during such period.  
2. The government agencies that may submit simplified tax returns to the Authority shall be determined by a Cabinet resolution issued upon the recommendation of the Minister.

Article (73)  
Payment of the Tax  
The Executive Regulations of this Decree -Law shall determine the time limits and 
procedures for payment of the tax shown in the tax return as payable in accordance with the provisions of this Decree -Law.  
  
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 person shall carry forward any excess of the refundable tax to the subsequent 
tax periods and offset such excess against the payable tax or any administrative fines 
imposed pursuant to the provisions of this Decree -Law or Federal Law No. (7) of 2017  
on Tax Procedures in the subsequent tax periods until such excess is fully utilized, in the 
following cases:  
a. If the refundable input tax of the taxable person, pursuant to this Decree -Law,  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 43 
 exceeds the payable output tax for the same tax period.  
b. If the tax paid by the taxable person to the Authority exceeds the payable tax in 
accordance with the provisions of this Decree -Law, other than the case referred to in 
paragraph (a) of Clause (1) of this Article.  
2. If there is any excess for any tax period after being carried forward for a period of time, 
the taxable person may submit to the Authority an application for requesting the refund 
of such excess. The Executive Regulations of this Decree -Law shall determine the time 
limits, procedures and mechanisms of returning any remaining excess to the taxable 
person.  
  
Chapter Fou r  
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 Regulations of this Decree -Law, refund the tax paid for any supply or importation 
made by any of the following:  
1. A national of the State with regard to the goods and services related to the construction 
of a new house, which is not part of the person's business.  
2. A non -resident person in the State or an applying state, who practices the business and is 
not a taxable person.  
3. A non -resident person with regard to the goods supplied for him in the State that will be 
exported.  
4. Foreign governments, international organizations, diplomatic bodies and missions in 
accordance with the conventions to which the State is a party.  
5. Any persons or categories to be determined under a Cabinet resolution, upon the 
proposal of the Minister.  
  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 44 
 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 
Administrative Fine Assessment to the Person and notify him thereof within five (5) working 
days as of the date of issuance, in any of the following cases:  
1. Failure by the Taxable Person to display the tax -inclusive prices, in accordance with the 
provisions of article (38) of this Decree -Law;  
2. Failure by the Taxable Person to notify the Authority of applying the Tax based on the 
margin, in accordance with the provisions of article (43) of this Decree -Law;  
3. Failure to adhere to the conditions and procedures to be followed for keeping the Goods 
in a designated area or moving them to another designated area;  
4. Failure by the Taxable Person to issue the Tax Invoice or a substitute document when making any supply;  
5. Failure by the Taxable Person to issue the Tax Credit Note or a substitute document; or  
6. Failure by the Taxable Person to comply with the conditions and procedures related to the issuance of the Tax Invoice and the Tax Credit Note electronically.

Article (77)  
Tax Evasion  
Without prejudice to the Tax Evasion cases set forth in the Tax Procedures Law, if it is proved 
that a Person who is not a Registrant acquires Goods in accordance with Clause (3) of Article 
(48) of this Decree -Law, and claims that he is a Registrant, he shall be deemed to have 
committed a Tax evasion and shall be punished in accordance with the provisions of the Tax 
Procedures Law.  
  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 45 
 Part Ten   
General Provisions

Article (78)  
Record Keeping  
Without prejudice to the provisions related to record keeping contained in any other law, 
every taxable person shall keep the following documents:  
a. Records of all supplies or importation of goods and services;  
b. All tax invoices and substitute documentation related to the receipt of goods or services;  
c. All tax credit notes and substitute documentation received;  
d. All tax invoices and substitute documentation issued;  
e. All tax credit notes and substitute documentation issued;  
f. Records of goods and services that have been disposed of or used for matters not related 
to the business, referring to the tax paid for the same;  
g. Records of goods and services purchased and for which the input tax has not been deducted;  
h. Records of goods and services exported;  
i. Records of adjustments and corrections made to the accounts and tax invoices.  
j. Records of any taxable supplies made or received in accordance with Clause (3) of 
article (48) of this Decree- Law, including any declarations submitted or received with 
regard to such taxable supplies;  
k. A tax record containing the following data:  
a. The due tax on the taxable supplies;  
b. The due tax on the taxable supplies according to the mechanism set out in Clause (1) of article (48) of this Decree -Law;  
c. The due tax after the correction or amendment of an error;  
d. The refundable tax for the supplies or importation;  
e. The refundable tax after the correction or amendment of an error. The Executive 
Regulations of this Decree -Law shall determine the following:  
a. Periods, rules and conditions for keeping the records set forth in Clause (1) of this  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 46 
 Article.  
b. Rules and procedures for maintaining the confidentiality of the records to which 
the Authority may have access in the case of the government agencies mentioned 
in Clause (2) of article (72) of this Decree -Law.

Article (79)  
Tax Registration Number  
The taxable person or any person authorized in writing thereby shall mention the Tax Registration Number in each tax return, notice, tax invoice, tax credit note, any other 
document related to the tax and any correspondences set forth in this Decree -Law or 
Federal Law No. (7) of 2017  on Tax Procedures referred to above.  
 
Article (79 -bis)  
Statute of Limitations  
1. Notwithstanding the cases set forth in Clauses (2), (3), (6) and (7) of this Article, the 
Authority shall not carry out a Tax Audit or issue a Tax Assessment for the Taxable 
Person following the lapse of (5) five years from the end of the relevant Tax Period.  
2. The Authority may carry out a Tax Audit or issue a Tax Assessment for the Taxable Person following the lapse of (5) five years from the end date of the relevant Tax Period, if the same is notified that the procedures of such Tax Audit have been commenced 
before the lapse of the (5) five years; provided that the Tax Audit shall be carried out or 
the Tax Assessment shall be issued, as the case may be, within (4) four years from the date of notification of the Tax Audit.  
3. The Authority may carry out a Tax Audit or issue a Tax Assessment following the lapse of (5) five years from the end date of the relevant Tax Period if such Tax Audit or the Tax 
Assessment issuance is related to a Voluntary Disclosure had been provided in the fifth 
year of the end of the Tax Period; provided that the Tax Audit or the Tax Assessment issuance, as the case may be, is carried out within one year from the date of providing 
the Voluntary Disclosure.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 47 
 4. The Cabinet may, at the Minister's proposal, issue a resolution adjusting the time limit 
specified for completing the Tax Audit or issuing the Tax Assessment, pursuant to 
Clauses (2) or (3) above.  
5. No Voluntary Disclosure may be provided following the lapse of (5) five years from the 
end date of the relevant Tax Period.  
6. In case of Tax Evasion, the Authority may carry out a Tax Audit or issue a Tax Assessment 
within (15) fifteen years from the end of the Tax Period within which the Tax Evasion 
occurs.  
7. In case of tax registration failure, the Authority may carry out a Tax Audit or issue a Tax 
Assessment within (15) fifteen years from the date on which the Taxable Person would 
have been required to proceed with the Tax Registration.  
8. The statute of limitations set out in this Article shall be interrupted for any of the reasons 
set forth in Federal Law No. (5) of 1985, Enacting the Law of Civil Transactions, or any 
other federal law superseding the same.  
  
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 Services prior to the date of entry into force of this Decree -Law, the date of 
supply shall be the same as the date of entry into force of the provisions of this 
Decree- Law in the following cases if the same is made following the date of entry into 
force of this Decree -Law:  
a. Transferring Goods under the supervision of the supplier.  
b. Placing Goods at the disposal of the Recipient.  
c. Completing the assembly or installation of the Goods.  
d. Issuing the customs declaration.  
e. Accepting the supply by the Recipient.   
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 48 
 2. In case of entering into an agreement prior to the date of ent ry into force of this 
Decree- Law, which is related to a complete or partial supply made following the date of 
entry into force of this Decree -Law and does not contain provisions on the tax 
chargeable on such supply, it shall be treated as follows:  
a. The Consideration shall be considered inclusive of the tax if levied under this 
Decree- Law.  
b. The Tax shall be calculated on the supply regardless of whether or not it has been 
taken into account when determining the Consideration for the supply.  
3. The Executive Regulations of this Decree -Law shall provide for the provisions on the 
application of this Decree -Law to the case where the agreement is made prior to the date 
of entry into force of this Decree -Law, but the supply is made wholly or partly after the 
date of entry into force of this Decree -Law.  
3.

Article (81) 
Revenue Sharing  
The tax revenues and administrative fines to be collecte d in accordance with the provisions 
of this Decree- Law shall be subject to sharing between the Federal Government and the 
Emirates Governments, pursuant to the provisions of Federal Decree- Law No. (13) of 2016  
on the Establishment of the Federal Tax Authority.

Article (82)  
The Executive Regulations  
The Cabinet shall, upon  the proposal of the Minister, issue the Executive Regulations of this 
Decree- Law.

Article (83) 
Matters not stipulated herein shall be subject to the provisions of the Tax Procedures Law.  
  
  
Federal Decree- Law No. (8) of 2017 on Value -Added Tax (VAT) 49

Article (84)  
Repeal of Conflicting Provisions  
Any text or provision inconsistent or discrepant with the provisions of this Decree -Law is 
hereby repealed.

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.  
  
Khalifa bin Zayed Al Nahyan  
President of the United Arab Emirates  
 
Issued by us in the Presidential Palace, Abu Dhabi  
On: 01 Dhul Hijjah 1438 AH.  
Corresponding to 23 August 2017 AD.