Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) (tax law)

Article (1)  
For the purpose of  applying the provisions of this Resolution , the following words and 
expressions shall have the meanings assigned thereto respectively, unless the context otherwise 
requires:  
State  : The United Arab Emirates.  
Minister  : The Minister of Finance.  
Authority  : The Federal Tax Authority.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  2 
 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 issued legislation . 
Goods  : Tangible properties which can be sup plied, including the real 
property, water, and all types of energy determined by this 
Resolution . 
Services  : Anything other than the goods, which can be supplied . 
Standard Rate  : The tax rate set out in article (3) of the Decree -Law . 
Importation  : Bringing goods or services into the State from abroad . 
Relevant Goods  : The goods imported and not exempted from the tax if supplied in 
the State . 
Relevant Services  : The 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 tax purposes under 
the Decree -Law . 
Taxpayer  : Any person that is obligated to pay the tax in the State pursuant to 
the Decree -Law, whether such person is a taxable person or an end 
consumer . 
Legal 
Representative  : The manager of a company, guardian,  or custodian of a minor or 
legally incompetent person, or any other person legally appointed 
to repres ent another . 
Tax Registration  : A procedure under which a taxable person or the legal 
representative thereof registers for the tax purposes at the Authority  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  3 
 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 . 
Recipient of 
Services  : The person to whom the services are supplied or imported . 
Tax Return  : The information and data specified for the tax purposes and 
provided by the taxable person in accordance with the form 
prepared by the Authority . 
Consideration  : Anything that has been received or expected to be received for the 
supply of goods or services, whether it is cash payment or in any 
other form recognized as compensation . 
Business  : Any activity that is practiced on an ongoing, regular,  and 
independent basis by any person and in any place, such as the 
industrial, commerci al, 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 the 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 . 
Deemed Supply  : All that is regarded as a supply and treated as a taxable supply in 
accordance with the cases set forth in the Decree -Law . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  4 
 Input Tax  : The tax paid by, or du e from, a person when goods or services are 
supplied to or imported by such person . 
Output Tax  : The tax levied on the taxable supply and on any supply which is 
deemed taxable supply . 
Refundable Tax  : The amounts paid that may be refunded by the Authority to the 
taxpayer under the provisions of the Decree -Law . 
Due Tax  : The tax that is calculated and levied under the provisions of the 
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 . 
Charities  : National nonprofit societies and institutions of public welfare, 
which are determined by a Cabinet resolution to be issued upon the 
proposal of the Minister . 
Mandatory 
Registration 
Threshold  : An amount specified in this Resolution and if the value of tax able 
supplies exceeds or is expected to exceed such amount, the supplier 
shall apply for tax registration . 
Voluntary 
Registration 
Threshold  : An amount specified in this Resolution and if the value of taxable 
supplies or taxable expenses exceeds or is exp ected to exceed such 
amount, the supplier may apply for tax registration . 
Transport -Related 
Services  : Transport, packaging and securing of cargo; preparation of customs 
documents; container management services and loading, Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  5 
 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 country, in 
accordance with its establishment decision and where important 
management decisions are taken or the functions of the business’ 
central administration are carried out . 
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 and includes 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 the 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 can control the others either 
by law or by acquisition of shares or voting rights.  
Designated Area  : Any area identified by a Cabinet Resolution issued upon the 
proposal of the Minister, as a designated area for the purposes of 
the Decree -Law . 
Exportation  : The departure of the goods from the State or providing the services 
to a person whose business establishment or fixed establishment is 
outside the State, including direct and indirect exportation . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  6 
 Direct 
Exportation  : An exportation of goods to a destination outside the applying states, 
in which the supplier is responsible for arranging transport or 
appointing an agent to act on his behalf in this regard . 
Indirect 
Exportation  : An exportation of goods to a destination outside the applying states, 
where the overseas customer is responsible for arranging the 
receipt of goods from the supplier in the State and export ing the 
goods or  appointing an agent to act on his behalf in this regard . 
Oversees 
Customer  : A recipient of goods who does not have a business establishment or 
fixed establishment in the State, does not reside in the State, and 
does not have a tax registration number.  
Voucher  : Any instrument entitling the holder to receive goods or services 
against the value stated thereon or to obtain a discount on the price 
of the goods or services and it does not include postage stamps 
issued by the Emirates Post Group . 
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 the Decree -Law and Federal Law No. (7) of 2017 
on Tax Procedures . 
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 the 
Decree -Law . 
Notification  : Notifying the concerned person or his tax agent or legal 
representative of the decisions issued by the Authority through the 
means provided for in Federal Law No. (7) of 2017 on the Tax 
Procedures . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  7 
 Tax Evasion  : The use of illegal means by a person, which causes 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 in accordance with the 
provisions of the De cree -Law . 
Decree -Law  : Federal Decree -Law No. (8) of 2017 Concerning the Value -Added 
Tax (VAT).  
  
Part  Two  
Supply

Article (2)  
Supply of Goods  
1. The  transfer of ownership of goods or the right to dispose thereof from one person to another  
shall include , inter alia :  
a. Transfer of ownership of goods under a written or verbal agreement for any sale;  
b. Transfer of ownership of goods for a consideration in a compulsory manner in accordance 
with  the applicable legislation.  
2. For the purposes of Clause (1) of this Article, the transfer of the right to dispose of any assets 
shall not be deemed  a supply of goods unless the other person is able to dispose there of as an 
owner.  
3. Concluding  a contract between two parties , whereby the ownership of g oods shall be 
transferred at a later time , shall be deemed  a supply of goods if the contract  provides for  a 
transfer or intention to transfer the ownership o f goods or a future transfer of ownership of 
goods.  
4. The following shall be deemed  a supply of goods:  
a. Supply of water . 
b. Supply of real properties,  including any sale and lease contract . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  8 
 c. Supply of all forms of energy, includ ing electricity and gas, including biogas, coal gas, 
liquefied petroleum gas, natural gas, oil gas, producer gas, refinery gas, reformed natural 
gas, and tempered liquefied petroleum gas, and any mixture of gases, whether used for 
lighting, heating, cooling, air conditioning or any other purpose.

Article (3)  
Supply of Services  
1. Each supply not considered a supply of goods shall be treated as a supply of services,  including 
any of the following:  
a. Granting, assignment, cessation, or surrender of a right . 
b. Providing a facility or advantage . 
c. Refraining from engaging  in any activity, or not allowing the occurrence of, any activities, 
or agreeing to carry out any activity.  
d. Transferring an indivisible share in good s. 
e. Transferring or licensing intangible rights, such as rights of authors, inventors  and  artists, 
trademarks ’ rights , and rights deemed by the legislation of the State to be within such 
category.  
2. Notwithstanding the provision of Clause (1) of this article, the duties of a board member 
performed by a nat ural person who is appointed a board member in any of the government 
agencies or a private sector establishment shall not be considered a supply of services.

Article (4)  
Supply Composed of More Than One Component  
1. If a person  makes  a supply composed of more than one component for a single price , such  
person  shall determine whether the supply constitutes a single composite supply or multiple 
supplies.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  9 
 2. The phrase “single composite supply” means any  supply of goods or services , where the 
supply has more than one component, taking into account the contract and circumstances of 
the supply as a whole .  
3. Any supply shall be considered a  single composite supply in the following cases:  
a. If the supply includes all of the following:  
1. A principa l component . 
2. A component or components essential or necessary to the supply , including incidental 
elements which naturally  accompany the supply , but generally are not a significant part 
of it , or do not constitute an aim in themselves , but a means of bette r enjoying the 
principal  supply.  
b. If the supply comprises two or more elements so closely linked as to form a single 
indivisible supply which it would be artificial to split .  
4. A single composite supply may occur under Clause (2) of this Article if all of the following 
conditions are met:  
a. The supplier shall  not define or charge t he price of the different components of the supply  
separately .  
b. All components of the supply shall be  supplied by a single supplier .  
5. If a taxable person  supplies more than one component for a single price  and the supply is not 
a single composite supply, then the supply of the components shall be deemed  multiple 
supplies.

Article (5)  
Exceptions from the Deemed Supply  
1. The supply shall not be regarded as deemed supply in any of the following cases:   
a. If the amount of the input tax for the related goods and services is not refunded.  
b. If the supply is exempt from the tax.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  10 
 c. If the refunded input tax on the goods and services is adjusted in a ccordance with the 
Capital Assets Scheme.  
d. If the value of the supply of goods, for each recipient during the period of twelve months, 
does not exceed (AED 500) five hundred dirhams and the supply is intended to use such 
goods as samples or commercial gift s.  
e. If the total output tax payable for all the deemed supplies per person for the period of 
twelve months  is less than  (AED 2,000) two thousand dirhams .  
2. For the purposes of Paragraphs (d) and (e) of Clause (1) of this Article, the period of twelve 
months  is the period which expires by  the end of the month in which the person  makes a 
supply referred to in either of the Clauses.  
 
Part  Three  
Registration

Article (6)  
Application for Registration  
For the purposes of mandatory or voluntary registration, the application for tax registration  shall  
contain all information requested by the Authority and  shall be submitted through the means 
specified by the Authority.

Article (7)  
Mandatory Registration  
1. The Mandatory Registration Threshold shall be (AED 375,000 ) three hundred , seventy -five 
thousand dirhams.  
2. The person  required to register for tax in accordance with the provisions the provisions of the 
Decree -Law shall  submit  the application  for tax registration to  the Authority within (30) days 
as of the date of being required to register.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  11 
 3. If the person required to register for tax does not submit  the application for tax registration , 
the Authority shall register such  person with effect fro m the date of being required to register 
and shall impose the relevant  penalties thereon in accordance with Federal Law  No. (7) of 
2017 on Tax Procedures.  
4. If supplies made by a person  exceed, in accordance with the Decree -Law, the Mandatory 
Registration Threshold during the previous twelve -month period, the Authority shall register 
the person  with effect from the first day of the month following the month in which the 
person  is obligat ed to register, whether or not such person  applies for tax registration , or from 
such earlier date to be agreed upon between the Authority and the person .  
5. If a person  expects that the supplies  thereof , in accordance with the Decree -Law, will exceed 
the Ma ndatory Registration Threshold during the next (30) thirty days , the Authority shall 
register such person  with effect from the date on which there are reasonable grounds for 
believing that the person  will be required to register as set forth  in this Clause, whether or not 
the person  notifies  the Authority  of the obligation  to register for tax, or from such earlier date 
to be agreed upon between the Authority and the person .  
6. If a person  who does not have a place of residence in the State  is required to register in 
accordance with the provisions of the Decree -Law, the Authority  shall register him for tax 
with effect from the commencement date of making supplies in the State, whether or not the 
person notifies the Authority of the obligation to register  for tax, or from such earlier date to 
be agreed upon between the Authority and the person .  
7. A taxable person  who delays the registration for tax purposes in accordance with the 
provisions of this Article shall be  liable for calculating and paying to the Authority the due tax 
on all taxable supplies and imports made there by before being registered .  
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  12

Article (8)  
Voluntary Registratio n 
1. The Voluntary Registration Threshold shall be (AED 187,500 ) one hundred eighty -seven  
thousand five hundred dirhams.  
2. If a person  applies for the tax registration voluntarily in accordance with the provisions of the 
Decree -Law, the Authority shall register such  person  with effect from the first day of the 
month following the month in which the application is submitted , or from such earlier date 
as may be requested by the person  and approved  by the Authority.  
3. If a person  applies for the tax registration volu ntarily based on his expectation that the 
supplies thereof, in accordance with the Decree -Law, will exceed the Voluntary Registration 
Threshold during the next (30) thirty days , such person  shall  provide evidence of making 
taxable supplies or incurring taxable expenses which exceed the Voluntary Registration 
Threshold .  
4. The Authority shall determine the evidence it deem s necessary to ensure  the person’s  
eligibility for voluntary tax registration .  
5. For the purpose s of voluntary tax registration,  the phrase “Taxable Expenses” means expenses 
which are subject to the standard rate and incurred in the State by a person  who has a place 
of residence in the State.  
6. No person  shall  register voluntarily unless he provides  the Authority with evidence that he 
practices  a business in the State.

Article (9)  
Related Parties  
1. For the purposes of the t ax group provisions, the definition of “Related Parties ” shall relate to 
two legal persons in cases  such as:  
a. One or more persons practicing the business in a partnership and having any of the 
following:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  13 
 1. Voting right s in each of th e legal persons  of 50% or more . 
2. Market value interest in each of the legal persons of 50 % or more . 
3. Control over  each of the legal persons in any other way .  
b. Each of persons is a related party with a third person.  
2. Two or more persons shall be deemed  related parties if they are economically, financially,  or 
organizationally related , taking into account the following:  
a. Economic practices, which shall include at least one of the following:  
1. Achieving a common commercial objective . 
2. One person’s business benefiting another person’s business . 
3. Supplying goods or services  by businesses of different persons to the same 
customer s.  
b. Financial practices, which shall include at least one of the following:  
1. Financial support provided  by one person’s business to another person’s business . 
2. One person’s business not being financially viable without another person’s 
business . 
3. Common financial interest s in the proceeds.  
c. Organizational practices, which shall include any of the following:  
1. Common management . 
2. Common employees whether or not jointly employed . 
3. Common shareholders or common economic ownership.  
3. For the purposes of this Article:  
a. “Market value interest” in a legal person means the ratio of the total market value of shares 
and options owned by a  person  to the  total market value of all shares in the legal person.  
b. Any shareholding shall  be disregard ed if there is another agreement, which contradicts 
the same . In such  case, the adjusted value in the shareholding shall  be calculated in 
accordance with the other agreement.  
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  14

Article (10)  
Registration as Tax Group  
1. A tax  group shall nominate  one of its registered members to act as the representative member 
of such  tax group.  
2. An application for register ing a tax  group shall be submitted  by the representative member of 
such  tax group.  
3. The Authority shall  decide on any application for registration of two or more persons as a tax  
group within 20 working day s as of  the date of receipt of the  application.  
4. If an application for forming a new tax group is approved, the registration of such tax group 
shall be valid  accordi ng to the following:  
a. From the first day of the tax period following the tax period during  which the application 
is received . 
b. From any date as determined by the Authority.  
5. The Authority may reject  the application for registration as a tax  group in any of the following 
cases:  
a. If the person s fail to  meet the conditions prescribed for applying for registration as a tax 
group in accordance with the provisions of the Decree -Law and article (9) of this 
Resolution .  
b. If there are serious grounds for believing that if the registration as a tax  group is permitted, 
it will enable tax evasion , or significantly decrease tax revenues of the Authority or 
increase the administrative burden on the Authority .  
c. If any of the person s included in the application is not a legal person.  
d. If one of the person s is a government agency  in accordance with article (10) and (57) of 
the Decree -Law and the other person is not.  
e. If one of the person  is a charity in accordance with article (57) of the Decree -Law and the 
other person is not.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  15 
 6. The Authority may reject  an application for  adding a person  to a tax  group if such  person does 
not meet the conditions prescribed for applying for registration as a tax group in accordance 
with the provisions of the Decree -Law or for the reasons mentioned in Clause (5) of this 
Article.  
7. If the Authority finds that two or more persons are in association as a result of their economic, 
financial and organizational  practices in business, the Authority may register them as a tax  
group after considering the circumstance s of each case, including the presence of the factors 
mentioned in Clause (2) of article (9)  of this Resolution .  
8. The Authority may only register a person  within  a tax  Group in accordance with Clause (7) of 
this Article if the two following conditions are met:  
a. The business of such person shall include  making taxable supplies or importing relevant 
goods or relevant services .  
b. All the taxable  supplies or imports of relevant goods or relevant services of the business 
by persons practicing the business shall  exceed the Mandatory Registration Threshold.  
9. The Authority may r eject the application for registration as a tax  group if there are serious 
reasons to suggest  that such registration will significantly decrease the t ax revenue s.

Article (11)  
Amendment to Tax Group  
1. The representative member appointed in accordance with article (10) of this Resolution  shall 
be entitled to apply to the Authority for any of the following:  
a. Add ing another person to be a member of the tax group ; 
b. Remov ing any member  of such  tax group ;  
c. Nominat ing another member of the tax group to be the representative member after 
obtaining the approval of the other member ; 
d. Canceling the registration of the  tax group.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  16 
 2. For the purposes of Clause (1) of this Article, the Authority shall be entitled to accept any 
applications from either:  
a. The first day of the tax period following the tax period during  which the application is 
received;  
b. Any date as determined by the Authority.  
3. Any notification sent by the Authority  to the representative member of any tax group shall be 
deemed to be served on the representative member and all other members of the tax group.

Article (12)  
Effect of Tax Group  Registration  
1. The registration of persons as a tax  group shall result in the following:  
a. Any business practiced  by a ny member of the tax group shall be deemed to be practiced  
by the representative member and not by any other member of such  tax group.  
b. Any suppl ies made by a member of the tax group to another member of the same tax 
group may be disregarded.  
c. Any supply,  whether or not  taxable, made by a member of the tax group shall be deemed 
to be made by the representative member.  
d. Any import of relevant goods or relevant services  made by a member of the tax group shall 
be deemed to be made  by the representative member.  
e. Any supply of goods or services  made for the benefit of a member of the tax group by a 
person  who is not a member of the tax group shall be deemed  a supply to the 
representative member.  
f. Any output tax charged by a member of the tax group  shall be deemed to be charged by 
the representative member.  
g. Any input tax incurred by a member of the tax group  shall be deemed to be incurred by 
the repres entative member.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  17 
 2. For the purposes of Clause (1) of this Article, all members of the tax group  shall be personally 
and jointly liable for any payable taxes of the representative member.

Article (13)  
Aggregation of Related Parties  
1. If it is found that two or more persons are in association as a result of their economic, financial 
and organizational  practices in the b usiness in accordance with Clause (2) of article (9) of this 
Resolution , and such  persons are not registered as a tax group  and artificially segregate their 
business, the value of the taxable  supplies of each person  shall be aggregated to determin e 
whether they both have exceeded the Mandatory Registration Threshold and Voluntary 
Registration Threshold.  
2. If the business is not segregated artificially but the Authority finds  that there is a shortfall in 
tax revenues as a result of the segregation  of such business , the Authority may aggregate the 
taxable supplies of each of the person s to determine whether the total  taxable supplies have 
exceeded the Mandatory Registration Threshold and Voluntary Registration Threshold.  
3. If any of the cases set forth in Clause (1) or (2) of this Article occurs , each of the person s shall 
be treated as making taxable supplies made by the other related parties  and shall apply for 
tax registration  if the Mandatory Registration Threshold is exceeded in accordance with the 
provisions of the Decree -Law.

Article (14)  
Cancellation of Tax  Registration  
1. The registrant  shall  submit  an application  for cancellation of tax registration in accordance 
with the cases set forth  in the Decree -Law, within (20) working day s as of the date of 
occurrence of any of them.  
2. The Authority shall approve  the application for cancellation of tax registration  submitted by 
the registrant when  the two following conditions are met:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  18 
 a. The registrant  ceases to  mak e supplies referred to in article (19) of the Decree -Law and 
does not expect to make any such supplies during  the next 12  month s.  
b. The value of supplies referred to in article (19) of the Decree -Law made  by the registrant , 
or the taxable expenses incurred  thereby , during the preceding twelve months is less than 
the Voluntary Registration Threshold and the Authority believes  that the value of supplies  
of such registrant , in accordance with the provisions of the Decree -Law, or the taxable 
expenses  expected during  the next (30) days, is not expected to exceed the Voluntary 
Registration Threshold.  
3. If the application for cancellation of tax registration  is approved, the Authority shall cancel the 
tax registration  of the registrant  as of  the last day of the tax period during which the registrant  
has met the conditions for cancellation of tax registration  or from such other date as may be 
determined by the Authority.  
4. If the Authority finds  that the conditions set forth in Clause (2) of th is Article are met, and the 
registrant  does not apply for cancellation of tax registration , the Authority shall cancel the tax 
registration of  the registrant  from the last day of the tax period during  which the Authority 
finds  that the conditions have been met or from any other date as may be determined by the 
Authority.  
5. The tax registration of the registrant shall not be cancelled  unless such registrant  pays  the total 
tax and administrative fines  due  therefrom  and submits  all the t ax returns as required under 
the Decree -Law and Federal Law  No. (7) of 2017 on Tax Procedures.  
6. For the purposes of Clause (5) of this Article, any goods and services forming part of assets of 
the b usiness practiced  by the registrant  shall be deemed to be supplied by such registrant  
immediately before the cancellation of his tax registration and he shall include the payable 
tax in the final tax return, unless the business is practiced  by a bankruptcy trustee in 
accordance with the pro visions of Federal Law  No. (7) of 2017 on Tax Procedures.  
7. If the registrant  applies for cancellation of tax registration  due to the reduction of his taxable 
supplies to less than the Mandatory Registration Threshold, the Authority shall cancel the tax 
registration , if it approves the application , with effect from:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  19 
 a. The date specified by the registrant  in the application; or  
b. The submission date of the applicati on if the registrant  does not specify the date of  
cancellation of tax registration  in his application .  
8. If the Authority cancels the tax registration of the registrant , it shall notify the registrant of the 
effective date of cancellation of tax registration  within (10) working day s as of the issuance 
of the cancellation decision .

Article (15)  
Cancel ing the Registration of Tax Group or Amendment Thereof  
1. The Authority shall cancel the registration of any tax group if the following conditions are met:  
a. If the person s registered as a tax group  no longer meet the conditions  for their registration 
as a tax group  in accordance with the Decree -Law.  
b. If there is no longer an association based on  their  economic, financial and organizational  
practices.  
c. If there are serious reasons for believing that permitting the continuance of the 
registration as a tax group  would enable the t ax evasion or significantly reduce the tax 
revenues of the Authority.  
2. The Authority shall amend the composition of a tax group  in any of the following cases :  
a. A member shall be removed from a tax group  if such member meets the conditions set 
forth in Clause (1) of this Article .  
b. A member shall be added to a tax group  if the Authority believes  that the activities carried 
out by a person  are deemed as part of the business practiced  by the tax group  in 
accordance with Clause (7) of article (10) of this Resolution .  
3. The representative member of a tax group  shall notify the Authority in case that  any member 
is no longer eligible to be part of the tax group , within (20) working day s as of the date of 
being non -eligible .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  20 
 4. If the Authority decide s to cancel or amend the registration of  a tax group , it shall give 
notification of such  decision and its effective date to the representative member within (10) 
working day s as of the date of  such decision.  
5. If a taxable person  is no longer a member of a tax group , the Authority shall assign  a new tax 
registration  number to such person or re -activate the tax registration  number thereof  before 
joining the tax group and  shall treat the same  as a registrant  immediately following the 
withdrawal from the tax group .

Article (16)  
Exception from Registration  
1. Any taxable person  wishing to  apply for an exception from tax registration  based on that all 
of his supplies are zero -rated, shall submit an application  to the Authority on the form and  by 
the means determined  by the Authority.  
2. The Authority shall scrutinize  the application for exception from registration and it may 
approve the exception from tax registration  or notify the taxable person  of rejection of his 
application .  
3. Any person  excepted from tax registration  shall  notify the Authority if he makes any supplies 
or imports of goods or services  that are taxable  at the standard rate.  
4. The  person  shall give the notice provided for  in Clause (3) of this Article within no more than 
(10) working day s as of the date of making the supply or import that  is taxable at the standard 
rate.  
5. If the person  no longer meets the condition  of exception from the tax registration, he shall be 
obligated to register for  the tax.

Article (17)  
Registration upon Entry into Force of the D ecree -Law  
1. A person  who will be taxable on the date of entry into force of the Decree -Law, shall  apply for 
tax registration  prior to such  date according to the dates as announced by the Authority.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  21 
 2. The effective date of registration of the taxable person  shall be  1 January 2018, if such person 
notifies the Authority of his obligation to register for the t ax in accordance with Clause (1) of 
this Article.  
3. If a person  registers  for the t ax prior to  the date  of entry into force of the Decree -Law, such  
person  shall have  the same rights and be subject to the same obligations as if he had  registered 
for the tax after the date of entry into force of the Decree -Law.

Article (18)  
Obligations  before Cancellation of Tax Registration  
The c ancellation of tax registration  shall  not exempt a person from his obligations and liabilities 
stipulated in the Decree -Law that were applicable while he was still a registrant .  
 
Part  Four  
Rules on Supplies

Article (19)  
Due Tax at the Date of Supply  
For the purposes of Articles (25), (26) and (80) of the Decree -Law, if the t ax is due because a 
payment is made or a tax  invoice is issued in respect of a supply of goods or services , the tax shall 
be due  to the extent of the payment made or stated in the tax invoice, and the remaining amount 
of the d ue tax on such  supply shall be payable in accordance with the provisions of the Decree -
Law.

Article (20)  
Place of Supply of Goods Delivered within the State  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  22 
 In the event that  the supply of goods requires that such goods  exit and re -enter the State during 
being transported from one location to another within  State, the goods shall not be treated as 
exported or imported if all the following conditions are met:  
a. If the exit from and re -entry into the State takes place in the course of a journey between two 
points with in the State.  
b. If there is no significant break in the transport  of goods  whil e existing outside the State, and 
any break is limited to what is reasonably expected in the course of normal transport of goods .  
c. If the goods are not unloaded from the relevant means of transport whil e being o utside the 
State.  
d. If the goods are not consumed, suppli ed, or subject to any process while being outside the 
State .  
e. If the nature, quantity,  or quality of the goods does not change as a result of exiting and re -
entering the State.

Article (21)  
Place of Supply of Services Related to Real Properties  
1. For the purposes of the Decree -Law and this Resolution , the “real property ” shall include  for 
example:  
a. Any piece of land upon  which rights , interests or services can be created ;  
b. Any building, structure or engineering work permanently attached to the land ;  
c. Any fixture or equipment established as a permanent part of the land or permanently 
attached to the building, structure or engineering work.  
2. A supply of services  shall be  deeme d as related  to a real property  if the supply of services  is 
directly connected with the real property , or it is the grant of a right to use the real property .  
3. A supply of services  directly connected with the real property  shall include  the following :  
a. Grant, transfer or assignment of any interest in or right over a real property ;  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  23 
 b. Grant, transfer or assignment of a person al right to any interest in or right over a real 
property ; 
c. Grant, transfer or assignment of a license  to occupy land or any other contractual right 
exercisable over or in relation to a real property , including the provision  and  lease of 
sleeping accommodation in a hotel or similar establishment ; 
d. A supply of services  by real estate experts or agents ;  
e. A su pply of services  involving the preparation, coordination and performance of 
construction, destruction, maintenance, conversion and similar work.

Article (22)  
Place of Supply of Certain Transport Services  
1. The place of the supply of each transport service shall be  the place where the supply of such  
transport service commences, if the trip includes more than one stop and includes  multiple 
supplies in accordance with Clause (5) of article (4) of this Resolution .  
2. The place of supply of transport -related services shall be the same as the pl ace of supply of 
the transport  service to which they relate.

Article (23)  
Telecommunication and E-Services  
1. “Telecommunication Services” means transmitting , broadcasting, converting or receiving any 
of the services listed below by using any communications equipment or devices that transmit, 
broadcast, convert, or receive such service s by electrical, magnetic, electromagnetic, 
electrochemical or electromechanical means any  other means of communication, including:  
a. Wired and wireless communications ;  
b. Voice, music and other sounds;  
c. Visual images;   Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  24 
 d. Signals used in broadcasting except for public broadcasts ; 
e. Signals used for operat ing and control ling any machinery or devices ;  
f. Services of an equivalent type which have a similar purpose and function.  
2. “E-services” means services which are offered directly via the internet, an electronic n etwork, 
or an electronic marketplace, including:  
a. Supply of web domain s, web -hosting and remote maintenance of programs and 
equipment;  
b. Supply and updating of software;  
c. Supply of images, text, and information electronically such as photos, screensavers, 
electronic books and other digital documents and files;  
d. Supply of music, films and games on demand;  
e. Supply of online magazines;  
f. Supply of advertising space on a website and any rights associated with such advertising;  
g. Supply of political, cultural, arti stic, sporting, scientific, educational or entertainment 
broadcasts, including broadcasts of events;  
h. Live streaming via the internet;  
i. Supply of distance learning  services ;  
j. Services of an equivalent type which have a similar purpose and function.  
3. “Elect ronic Marketplace” means a distribution service to be  operated by electronic means, 
including by a website, internet portal, gateway, store, or distribution platform, and provided 
that the following conditions  are met :  
a. It shall allow  suppliers to supply  e-services to customers.  
b. The supplies made by the electronic marketplace shall  be made by electronic means.  
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  25

Article (24)  
Evidence of Certain Supplies among  the Applying State s 
1. If a taxable person  makes a supply of goods  from the State to a person  who has a place of 
residence in another applying state , and the supply requires the goods to be actually  moved 
to such  other applying state , the taxable person  shall retain official and commercial evidence 
of exportation  of such  goods to such  other applying state .  
2. The Authority may requests  from a taxable pe rson  who supplies goods or services  to another 
applying state  to collect  and  retain any evidential information as well as what is stated in  
Clause (1) of this Article, and provide the same by the means determined by the Authority.  
3. The Customs Departments shall confirm the type and quantity of the exported goods with the 
export ation d ocuments  issued by them .

Article (25)  
Market Value  
1. “Similar Supply”, with respect to the  supply of goods or services , means any other supply of 
goods or services  which is similar to or substantially resembles , in respect of the 
characteristics, quality, quantity, functional components, materials, and reputation, such  
supply of goods or services .  
2. The market value of a supply of goods or services  at a given date shall be deemed  the cash 
consideration which the supply would generally achieve if supplied in similar circumstances 
at such  date in the State, being a supply freely offered and made between persons who are 
not in association  in any manner.  
3. If the market value of a supply of goods or services  at a given date cannot be determined as 
stipulated in Clause (2) of this Article, the market value shall be  the cash consideration  which 
a similar supply would achieve if supplied in similar circumstances at such  date in the State, 
being a supply freely offered and made between persons who are not in association in any 
manner .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  26 
 4. If it is not possible to determine the market value of a supply of goods or services  as stipulated 
in Clauses (2) and (3) of this A rticle, the market value shall be determined by reference to the 
replacement cost of identical goods or services , provided that such supply is offered by a 
supplier who is not in association with  the recipient  of goods  or recipient  of services  in any 
manner.

Article (26)  
Apportionment of Single Consideration  
For the purposes of Clause (4) of article (34) and article (47) of the Decree -Law, if the 
consideration payable to the taxable person  relates to a supply of goods or services  and matter s 
other than the supply of goods or services , or to two different supplies of goods or services , the 
taxable person  shall  specify  the portion of the consideration that represents the market value of 
each part of the supply in accordance with the provisions of article (25) of this Resolution .

Article (27)  
Tax Exclusive Price  
1. The declared prices shall be inclusive of tax i n case of the taxable supply .  
2. Notwithstanding the provisions of  Clause (1) above, the taxable person  may declare tax-
exclusive prices in the following cases:  
a. Supply of goods or services  for exportation ; 
b. If the customer is a registrant .  
3. If the declaration of prices as being exclusive of tax applies in accordance with Clause (2) of 
this Article, the price shall  be explicitly identified as being exclusive of tax.  
4. Notwithstanding the provisions of  Clause (1) above, the taxable person  shall declare the price 
as being exclusive of tax in the following cases:  
a. Supply of relevant  goods or relevant services  to which the provisions of Clause (1) of 
article (48) of the Decree -Law  apply .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  27 
 b. Supply of taxable goods  in accordance with Clause (3) of article (48) of the Decree -Law.

Article (28)  
Discounts , Subsidies and Vouchers  
1. The State shall not be treated as providing a subsidy to the supplier if the subsidy or part 
there of is a consideration for a supply of goods or services  to the State.  
2. The value of supply may be reduced in the case of a discount if the following conditions are 
met:  
a. The customer benefits from the reduction in price.  
b. The supplier fund s the discount.  
3. The value of a discount shall be the amount by which th e consideration is reduced.  
4. The value of a discount shall not include the value of any voucher used, and any such 
reduction shall  be disregarded  unless the voucher is provided for no consideration.  
5. If the supplier issues and sells a voucher for considera tion that is less than the value stated on 
the voucher, the value of discount shall be the difference between the value of the voucher 
and the consideration paid for such v oucher.  
6. The “Voucher” shall not include an instrument that gives the right to recei ve goods or services  
or the right to receive a discount on the price of the goods or services  unless the cash value 
for which the voucher may be redeemed is identified when issuing the voucher .  
 
Part  Five  
Profit Margin Scheme

Article (29)  
Levying the Tax based on the Profit Margin  
1. The taxable person  may  calculate and charge the tax on any taxable supplies on the basis of 
the profit margin  in the following cases :  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  28 
 a. If the taxable person makes  a supply of goods  set out  in Clause (2) of this Article after 
having been purchased from any of the following :  
1. A person  who is not a registrant .  
2. A taxable person  who has calculated the tax on the supply on the basis of the profit 
margin.  
b. If the taxable person makes a supply of goods  for which the i nput tax has not been 
refunded  in accordance with article (53) of this Resolution .  
2. The goods set forth in Clause (1) of this Article mean goods that have been taxed before the 
supply which shall be subject to the profit margin scheme and such  goods are:  
a. Used  goods ; i.e.  tangible moveable property suitable for further use as it is or after repair.  
b. Antiques ; i.e. goods that are over 50 years old.  
c. Collectors' items , including stamps, coins and paper money  and other items  of scientific, 
historical or archaeological importance .  
3. A taxable person  may not calculate and charge the tax on the basis of the profit margin in 
respect of goods  stated in  Paragraph (a) of Clause (1) of this Article if a tax invoice  or other 
document i s issued for such  supply and the amount of the tax levied on the supply is 
mentioned in the tax invoice or the document .  
4. The profit margin shall be  the difference between the purchase price of the goods  and the 
selling price there of, and  shall be deemed to be inclusive of the tax.  
5. Any  taxable person  shall  keep the records  mentioned below  in respect of the supplies made 
in accordance with this Article:  
a. A stock book or similar record s showing details of each good s purchased and sold under  
the profit margin scheme ;  
b. Purchase invoices showing details of the goods  purchased under the profit margin 
scheme. If the goods  are purchased from non -registrant p ersons, the taxable person  shall  
issue an invoice showing details of the goods  himself, whi ch shall contain  at least the 
following information:  
1. Name, address and tax registration  number of the taxable person ;  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  29 
 2. Name and address of the person  selling the good s; 
3. Date of the purchase ;  
4. Details of the goods  purchased ;  
5. Consideration payable in respect of the goods ;  
6. Signature of the seller of the goods  or his authorized signatory.  
6. If a taxable person  charge s a tax on a supply on the basis of the profit margin, such  taxable 
person  shall issue a tax invoice  which  explicitly states that the tax  is charged on the basis of 
the profit margin, in addition to all other information to be mentioned in the tax invoice  
except for the tax amount .  
 
Part  Six 
Zero -Rated Supplies

Article (30)  
Applying the Zero  Rate to the Exportation  of Goods  
1. The direct exportation shall be subject to the zero rate if the following conditions are met:  
a. The goods  are physically moved to a place outside the applying  state s or are put under  a 
customs suspension scheme  in accordance with the GCC Common Customs Law , within 
ninety (90) days as of the date of supply.  
b. The exporter shall maintain o fficial and commercial evidence of exportation  or customs 
suspension.  
2. The  indirect exportation  shall be subject to the zero rat e if the following conditions are met:  
a. The goods  are physically moved  to a place outside the applying  state s or are put under  a 
customs suspension scheme  in accordance with the GCC Common Customs Law, within 
ninety (90) days as of the date of supply in accordance with arrangement s to be  agreed 
upon by the supplier and the overseas customer at or before the date of supply  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  30 
 b. The overseas customer shall obtain  official and commercial evidence of exportation  or 
customs suspension in a ccordance with the GCC Common Customs Law, and provide a 
copy thereof to the supplier.  
c. The goods  shall  not be used or altered during the period between the supply and 
exportation  or customs suspension, except to the extent necessary to prepare the goods  
for exportation  or customs suspension.  
d. The goods  shall  not leave the State in the possession of a passenger or crew member of 
an aircraft or ship.  
3. For the purposes of this Articl e, moving  goods  to a designated area from a place in the State 
or a supply of goods  to a designated area shall not be deemed  an exportation  of such  goods.  
4. For the purposes of Clauses (1) and (2) of this Article:  
a. “Official evidence” means the e xportation  documents issued by the local customs 
departments in the emirate in respect of goods  leaving the State.  
b. “Commercial evidence” shall include any the following:  
1. Air waybill (AWB);  
2. Bill of lading ;  
3. Consignment note ;  
4. Certificate of shipment .  
5. The evidence of exportation , whether official or commercial, shall  identify the following:  
a. The supplier ;  
b. The consignor ;  
c. The goods ;  
d. The value ;  
e. The exportation destination ; 
f. The means of transport and route of the exported goods .  
6. The Authority may identify other types of evidence according to the nature of the exportation 
or the nature of the goods  to be  exported.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  31 
 7. The Authority may extend the period of (90) days set out  in Clauses (1) and (2) of this Article, 
upon a written request of the suppl ier, if the Authority finds  that any  of the following occurs :  
a. There are c ircumstances beyond the control of the supplier and the recipient  of goods  
which  have prevent ed, or may  prevent, the exportation of the goods  within ninety (90) 
days as of the date of supply .  
b. The goods  or a class of the goods cannot be exported d ue to the nature of the supply, 
within ninety (90) days as of the date of supply .  
8. The indirect exportation shall  include a supply of goods  in a departure area of an airport or 
port to a passenger of an aircraft or ship  if:  
a. The goods  leave the State in the possession of the passenger.  
b. The supplier obtain s and retain s evidence , such as the details of the boarding pass of the 
passenger, that the passenger intends to depart for a destinat ion outside the applying  
state s.  
9. If the person  obligated to e xport the goods  under  this Article does not do so within the period 
of (90) days or a longer period approved by  the Authority under Clause (7) of this Article, the 
tax shall be levied  on the supply at the rate that would have been due on the supply if made 
in the State.  
10. For the purposes of this Article , any supply of goods  shall be subject to the zero rate if the 
goods intended for exportation are  destroyed or cease to exist due to circumstances beyond 
the control of both the supplier and the recipient  of goods .  
11. The Customs Departments shall check to confirm the type and quantity of the exported goods 
with their  exportation  documents.

Article (31)  
Applying the Zero Rate to  the Exportation  of Services  
1. The exportation of services  shall be subject to the zero rate in the following cases.  
a. If the following conditions are met:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  32 
 1. The services are supplied to a recipient of services  who has no place of residence  in 
any applying  state  and is outside the State when  the services are performed .  
2. The services are not supplied directly in connection with real propert ies situated in the 
State or any improvement to such  real propert ies or directly in connection with 
moveable personal assets situated in the State when  the services are performed.  
b. If the services are actually performed outside the applying states  or are the arrangement 
of services  that are actually performed outside the applying  state s.  
c. If the supply includes the provision  of outbound tour packages, for the part relating to 
such  service.  
2. For the purpose s of Paragraph (a) of Clause (1) of this Article, a per son shall be deemed  as 
being “outside the State” if his presence  is only for a short period of less than one month  and 
if his presence in the State is not effectively connected with the supply.  
3. Notwithstanding the provisions of  Paragraph (a) of Clause (1) of this Article, a supply of 
services  shall not be zero -rated, if the supply is made under an agreement entered into, 
whethe r directly or indirectly, with a non -resident r ecipient of services  if all of the following 
conditions are met:  
a. The performance of services is, or it is reasonably foreseeable at the time of entering  into 
the agreement that the performance of services will be, received in the State by another 
person, including but not limited to, an employee or a manager  of the non-resident 
recipient of services .  
b. It is reasonably expected , at the time of entering into the agreement , that other person in 
the State will receive the services in the course of making supplies for which the i nput tax 
may  not be refundable  in full in accordance with article (54) of the Decree -Law.  
4. For the purposes of Paragraph (c) of Clause (1) of this Article, service s that include  the 
“provision  of outbound tour packages” mean the services that a taxable person  provides in 
packaging one or more tourism products and also services outside the applying  state s, 
including goods and services such as accommodation, meals, tr ansport, and other activities.  
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  33

Article (32)  
Applying the Zero Rate to  the Exportation of Telecommunications 
Services  
1. The exportation  of telecommunications services shall be subject to the zero rate in the 
following cases :  
a. A supply of telecommunications services by a telecommunications supplier who has a 
place of residence  in the State to a telecommunications supplier who has place of 
residence  outside the applying  state s.  
b. A supply of telecommunications services initiated outside the applying states by a 
telecommunications supplier who has a place of residence  in the State to a person  who is 
not a telecommunications supplier and has a place of residence  outside the State.  
2. For the purposes of Paragraph (b) of Clause (1) of this Article, the place wher e a supply is 
initiated shall be identified  according to the following:  
a. The place of the person  who initiates the supply.  
b. If Paragraph (a) of this Clause does not apply, the person  who pays for the services .  
c. If Paragraphs (a) and (b) of this Clause do not apply, the person  who contracts for the 
purposes of the supply . 
3. For the purposes of this Article, the “telecommunications supplier” means a person  whose 
main activity is the supply of telecommunications services.

Article (33)  
Applying the Zero Rate to  International Transport Services  for Passengers and 
Goods  
1. The supply of international transport services  for passengers and goods  and transport -related 
services shall  be subject to the zero rate in the following cases:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  34 
 a. Services of t ransporting passengers or goods  from a place in the State to a place outside 
the State . 
b. Services of transporting passengers or goods  from a place outside the State to a place in 
the State . 
c. Services of transporting passengers from a place in the State to another place in the State 
by sea , air or land as part of a supply of an international transport of such  passengers if 
the first place of departure  and/ or the final destination is outside the State.  
d. Services of transporting goods  from a place in the State to another place in the State if the 
services  are supplied as part, or for the purpose, of the supply of services  of transporting 
goods either from a p lace in the State to a place outside the State or from a place outside 
the State to a place in the State.  
2. The following goods and services shall be zero -rated if they are supplied in respect of the 
transport services  for passengers or goods  in accordance with the provisions of Clause (1) of 
this Article or treated as taking place outside the State:  
a. Goods  which are supplied for use , consumption or sale by or on an aircraft or ship . 
b. Services  provided  during the supply of transport services . 
c. Service s of insurance , arranging the insurance, or arranging the transport of passengers or 
goods .  
3. A supply of postage stamp s issued by the Emirates Post Group shall be zero -rated where the 
postage stamp may only be used or redeemed for transportation of goods  to a p lace outside 
the State.

Article (34)  
Applying the Zero Rate to  Certain Means of Transport  
The supply of means of transport shall be subject to the zero rate in the following cases:   
1. A supply of an aircraft which is designed or adapted to be used for commercial transport of 
passengers or goods  and not designed or adapted for recreation, pleasure or sports ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  35 
 2. A supply of a ship, boat or floating structure which is designed or adapted for use for 
commercial purposes an d not designed or adapted for recreation, pleasure or sports.  
3. A supply of bus or train which is designed or adapted to be used for public transport of (10) 
or more passengers.

Article (35)  
Applying the Zero Rate to  Goods and Services Related to  the Supp ly of  Means 
of Transport  
1. Goods  and services related to the supply of means of transport set forth  in article (34) of this 
Resolution  shall be subject to the zero rate if they are any of the following:  
a. Goods, except for fuel or other oil or gas products, that are supplied in the course of 
operating, repairing, maintaining or converting means of transport in any of the following 
cases:  
1. The goods  are incorporated into, affixed to, attached to or form part of such  means of 
transport.  
2. The goods  are used directly as consumable goods in the operation, repair, 
maintenance, or conversion process  and become unusable or worthless as a result of  
such use .  
b. Services which are supplied directly in connection with means of transport referred to in 
article (34) of this Resolution  for the purposes of operating, repairing, maintaining,  or 
converting such  means of transport.  
c. Services which are supplied  directly in connection with parts and equipment of means of 
transport referred to in article (34) of this Resolution  for the purpose of repairing and 
maintaining such  parts and equipment, provided that any of the following conditions is 
met :  
1. The services  are performed  on board the means of transport.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  36 
 2. The part or equipment is removed for repair or maintenance and  is subsequently 
reinstalled  in the same means of transport.  
3. The part is removed for repair or maintenance and  is subsequently held in s tock for 
the future use as a spare  part  in the same means of transport or another means of 
transport.  
4. The part cannot be repaired and is replaced by a similar  part.

Article (36)  
Applying the Zero Rate to Precious Metals  
1. The supply or import ation  of investment precious metals shall be subject to the zero rate .  
2. The “i nvestment precious metals” mean  gold, silver and platinum that meet the following 
standards:  
a. The metal is of a purity of 99 percent or more.  
b. The metal is in a form tradable  in globa l bullion markets.

Article (37)  
Residential Buildings  
1. The “residential building s” mean building s intended and designed for human occupation, 
including:  
a. Any building or part there of occupied by a person or expected to be occupied by a person  
as his princ ipal place of residence ;  
b. Residential accommodation for students or school pupils ;  
c. Residential accommodation for armed forces and security forces;   
d. Orphanages, nursing homes, and rest homes.  
2. The  “residential building” does not include any of the following:  
a. Any place that is not a building fixed to the ground and can be moved without being 
damaged ;  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  37 
 b. Any building that is used as a hotel, hostel , bed and breakfast establishment, hospital or 
the like ;  
c. A hotel apartment which offers services in addition to the accommodation ;  
d. Any building constructed or converted without a legal license .  
3. Any building may be deemed  as a residential building if a s mall part  there of is used as an office 
or workspace by the occupants, if it includes garages and gardens used in conjunction with it, 
or if it includes any other features that may be said to comprise part of the residential building.

Article (38)  
Applyin g the Zero Rate to Buildings Specifically Designed to be Used by 
Charities  
1. The first sale or lease of a building, or any part thereof , shall be zero -rated if the building is 
specifically designed to be used by a charity and solely for a relevant charitable activity.  
2. For the purposes of  Clause (1) of this Article, “relevant charitable activity” means an activity 
not intended to make a profit or interest to any proprietor, member, or shareholder of the 
charity, and one  which is carried out by the charity in the course or furtherance of its 
charitable purpose or objectives to carry out a charitable activity in the State as approved by 
the Ministry of Community Development, or in accordance with  the conditions of its 
establishment as a charity under federal or local  decree, or as otherwise licensed to operate 
as a charity by an agency authorized to grant such licenses by  the federal or emirate 
governments. Such charitable purposes and objectives include, for example , ad vancing 
health, education, public welfare, religion, culture, science and similar activities.  
 
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  38

Article (39)  
Applying the Zero Rate to  Converted Residential Building s 
1. The first supply of a building, or any part there of, which is converted to a residential building 
shall be zero -rate d, provided that the supply takes place within three ( 3) years as of the 
completion of the conversion and the original building, or any part there of, has not been used 
as a residential building and not comprise d part of a residential building within (5) five years 
prior to the commencement of the conversion work.  
2. The presence of shared or common facilities, or dividing walls or similar features in a 
residential building shall  not be sufficient grounds to consider the residential building or any 
part there of as part of a n existing residential building.

Article (40)  
Applying the Zero Rate to  Education al Services  
1. The supply of educational services shall be subject to the zero rate if the following conditions 
are met:  
a. The supply of educational services is provided in accordance with the curriculum 
recognized  by the federal or local competent government agency  regul ating the education 
sector where the course is delivered.  
b. The supplier of educational services is an educational institution recognized  by the federal 
or local competent government agency  regulating the education sector where the course 
is delivered.  
c. If the supplier of educational services is a higher education institution, the institution shall 
be either owned by the federal or local government or receive more than 50 % of its annual 
fund ing directly from the federal or local government.  
2. The  supply of goods or services  made by educational institutions referred to  in Clause (1) of 
this Article shall be zero -rated if the supply is directly related to the provision of a zero -rated 
educationa l service.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  39 
 3. Printed and digital reading material provided by educational institutions referred to  in Clause 
(1) of this Article and related to the academic curriculum shall be zero -rated.  
4. Notwithstanding the provisions of  Clause (2) of this Article, the following supplies shall not 
be zero -rated:  
a. Goods and services supplied by the educational institution referred to in Clause (1) or 
made available to persons who are not enrolled in such  educational institution.  
b. Any goods  other than educational materials provided by the educational institution 
referred to in Clause (1) which  are consumed or transformed by the students benefiting 
from  the educational service for the purposes of education.  
c. Uniforms or any other clothing whi ch are required to be worn by the educational 
institution referred to in Clause (1), whether or not supplied  by the educational institution  
as part of the supply of educational services.  
d. Electronic devices related to the  educational services, whether or n ot supplied by the 
educational institution referred to in Clause (1) as part of the supply of educational 
services.  
e. Food and beverages supplied at the educational institution referred to in Clause (1), 
including any supplies from vending machines or vouch ers in respect of food and 
beverages.  
f. Field trips, unless they  are directly related to the curriculum of an education service and 
are not predominantly recreational.  
g. Extracurricular activities provided by or through the educational institution referred t o in 
Clause (1) against  fees additional to the fee s of the education service.  
h. Membership of a student organization .  
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  40

Article (41)  
Applying the Zero Rate to  Healthcare Services  
1. The “healthcare services” mean any service supplied and  generally recognized  in the medical 
profession as being necessary for treat ing the recipient  of the supply , including the preventive 
treatment.  
2. Any supply of healthcare services shall be zero -rated , provided that :  
a. It is made  by a healthcare entity or institution, doctor, nurse, t echnician, dentist, or 
pharmacy  licensed by the Ministry of Health or by any other competent authority.  
b. It is r elate d to the human health .  
3. "Healthcare services" do not include any of the following:  
a. Any part of a supply in relation to  staying in or attending an establishment whose main  
purpose is to provide holiday accommodation or entertainment so that any healthcare 
service is incidental to the provision of the accommodation or entertainment.  
b. Elective treatment for cosmetic reasons unless  prescribed by a doctor or medical specialist  
for treating or prevent ing a medical condition.  
4. The  supply of goods  shall be  zero -rated if it is a supply of  any of the following :  
a. Any drugs  specified  in a resolution  issued by the Cabinet ;  
b. Any medical equipment specified in a resolution  issued by the C abinet ;  
c. Any other goods not covered by Paragraphs (a) and (b) of this Clause , which are supplied 
in the course of supplying zero -rated healthcare services that are necessary for the supply 
of such healthcare services.  
 
 
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  41 
 Part  Seven  
Exempted Supplies

Article (42)  
Tax Treatment of Financial Services  
1. For the purposes of this Article:  
a. The “debt security” means any interest in or right to receive money owed, or to be owed 
from  any person, or any option to acquire any such interest or right . 
b. The “ equity security” means any interest in or right to a share in the capital of a legal 
person, or any option to acquire any such interest or right;  
c. The “ life insurance contract” means a contract legally  entered into to the extent that it 
places sums at risk  upon the contingency of the termination or continuance of human life, 
marriage, similar relationships permitted under the applicable law, or the birth of a child.  
d. The “ Islamic  financial arrangement” means a written contract relat ing to a supply of 
financ ing in accordance with the principles of Shariah.  
2. Financial services are services associated with cash dealings or equivalent  and the provision 
of credit and include, for example, the following :  
a. Exchange of currency, whether by the exchange of bank notes or coin, by crediting or 
debiting accounts, or otherwise ;  
b. Issue, payment, collection, or transfer of ownership of a check  or letter of credit ;  
c. Issue , allotment, drawing, acceptance, endorsement, or transfer of ownership of a debt 
security ;  
d. Provision of any loan, advance or credit ;  
e. Renewal or variation of a debt security, equity security, or credit contract ;  
f. Provision , taking, variation, or release of a guarantee, indemnity, security, or bond in 
respect of the performance of obligations under a check , credit, equity security, debt 
security, or in respect of the activities set forth  in Paragraphs (b) to (e) of this Article ;  
g. Operation of any current, deposit or savings account ;  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  42 
 h. Provision or transfer of ownership of Sukuk such as derivatives, options, swaps, credit 
default swaps, and futures ;  
i. Payment or collection of any amount of interest, capital or  dividend, or any other amount 
in respect of any de bt security, equity security, credit, or life insurance  contract;   
j. Agreement or arrangement to carry out any of the activities set out  in Paragraphs (a) to (i) 
of this Clause, except for providing consultation in respect thereof .  
3. The following financial s ervices shall be exempted  from the tax :  
a. The a ctivities set forth in  Clause (2) of this Article , which  are not carried out against an 
explicit fee, discount, commission, or the like;   
b. Issue , allotment, or transfer of ownership of an equity security or debt security;  
c. Provision or transfer of ownership of a life insurance contract or provision of re -insurance 
for such contract.  
4. The supply of services set forth in Clause (2) of this Article shall be subject to  the tax if the due 
consideration thereof is an explicit fee, commission, discount, or the like .  
5. Islamic financial products , being financial products under contract s complying with the 
Islamic Shariah, which simulate the intention and ac hieve the same result as a non -Shariah 
compliant financial product, shall  be treated in a similar manner as the equivalent non -
Shariah financial product for the purpose of applying the exemption from the t ax.  
6. Any supply made under an Islamic financial arr angement shall be treated in a similar manner 
as the equivalent non -Shariah financial services  in accordance with the provisions of the 
Decree -Law and the decisions issued by the Authority, so that the tax treatment shall be the 
same in the two cases .  
7. If article (31) of this Resolution  applies to a supply of financial services, such  supply shall  be 
zero -rated.  
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  43

Article (43)  
Exemption of Residential Buildings  
1. The supply of residential buildings shall be  exempt ed, except for  zero -rated  supplies , if the 
term of the lease  contract  is more than (6) six months or the lessee  of the property holds  an 
ID card issued by the Federal Authority for Identity and Citizenship.  
2. The term of the lease contract referred to in Clause (1) of this Article shall be dete rmined  with 
reference to the contractual period and shall not take into account any period arising from a 
right or option to extend the term of the lease contract or renew the contract .  
3. For the purposes of Clause (1) of this Article, a ny right of any party to terminate the lease 
contract early shall be disregarded .

Article (44)  
Exemption of Vacant  Land s 
The “ vacant  land” means the land on which no completed  or partially completed buildings or civil 
engineering works  are established .

Article (45)  
Exemption of Domestic  Passenger Transport Services  
1. The supply of domestic  passenger transport services by a qualifying means of transport by 
land, water,  or air from a place in the State to another place in the State shall be exempt ed.  
2. The “qualifying means of transport” means:  
a. Any motor vehicle, including a tax i, bus, train, tram, monorail train or similar  means of 
transport designed or adapted for transport of passenger s. 
b. Any passenger boat, ferry or other similar vessel designed or adapted for transport of 
passengers . 
c. Any helicopter or airplane designed or adapted for transport of passengers in accordance 
with Federal Law No. (20) of 1991 on Civil Aviation.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  44 
 3. Notwithstanding the provisions of  Clause (1) of this Article, the passenger transport services  
from a place in the S tate to another place in the State shall not be considered domestic  
passenger transport service s if the transport is carried out by an aircraft and shall be deemed 
as “international carriage” as defined in the Warsaw International Convention for the 
Unific ation of Certain Rules Relating to International Carriage by Air 1929.  
4. Notwithstanding the provisions of  Clause (1) of this Article, the transport of passengers shall 
not be deemed  as domestic  passenger transport services if it is undertaken in the contex t of a 
pleasure trip whose  main  objective is sightseeing, or enjoyment of catering services, or other 
forms of pleasure or entertainment.  
 
Part  Eight  
Calculating the Tax on Certain Supplies

Article (46)  
Imposing  Tax on Supplies Composed of More than One Component  
For the purposes of the supply composed of more than one component :  
1. If the supply is a single composite supply as set forth  in article (4) of this Resolution , the 
supply shall be subject to the same tax treatment of the principal component of the supply.  
2. If the supply composed of multiple components is not a single composite supply, the supply 
of each component shall  be treated as a separate supply.

Article (47)  
General Provisions Relating to the Importation of Goods  
1. Without prejudice to the provisions of the Decree -Law and this Resolution , goods shall not 
be treated as imported into the State according to the following:  
a. If they are under a customs suspension scheme  in accordance with the GCC Common 
Customs Law, and provided that a financial guarantee or a cash deposit equal to the value 
of the due tax is provided if requested by the Authority, in the following cases:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  45 
 1. Temporary admission . 
2. Goods plac ed in a customs warehouse . 
3. Goods in transit . 
4. Imported  goods to be re -exported by the same person . 
b. Imported goods into a designated area from a place outside the State.  
2. The t ax shall not be due on any import ation  of goods  if exempted from customs duties  as per 
the following categories in accordance with the GCC Common Customs Law:  
a. Goods imported by the armed forces  and internal security forces ;  
b. Personal effects and gifts in the possession of  travelers ;  
c. Importation of u sed personal effect s and household items brought by nationals residing 
abroad or foreigners coming to reside  in the State  for the first time ;  
d. Returned goods.  
3. If a person  import s goods to the State through another applying state , the tax  shall  not be due 
on such  import, if the Authority establishes that the t ax is due on the supply or transport  of 
goods  in such  other applying state .  
4. The Authority may determine the  procedures to be followed by importers and Customs 
Departments in respect of the import ation  of goods .

Article (48)  
Calculating the Tax Under the Reverse Charge Mechanism on Import ation  of 
Relevant  Goods or Relevant  Services  
1. For the purposes of import ing r elevant  goods, the provisions of Clause (1) of article (48) of 
the Decree -Law shall apply if the following conditions are met:  
a. At the time of import ation , the taxable person  can prove  his tax registration .  
b. The taxable person  has sufficient details for the Authority to verify the import ation  and 
the tax  to be due there on and is able to provide the same  to the Authority upon request .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  46 
 c. The taxable person  provide s the Authority with its own customs registration number 
issued by the competent Customs Department, and such Customs Depar tment  verif ies 
the import ation  in accordance with the rules laid down by the Authority.  
d. The taxable person  cooperate s with, and complie s with any rules imposed by , the 
Authority in respect of the import ation .  
2. If the conditions stipulated  in Clause (1) of this Article are not met, the taxable person  shall 
calculate the t ax in respect of the importation  in accordance with Clause (1) of article (50) of 
this Resolutio n.  
3. If the taxable person  who has a place of residence  in the State receives a supply of goods or 
services , and  the place of supply is in the State, from a supplier who has no  place of residence  
in the State and does not charge a tax on the supply, the supply shall be treated as being of 
relevant goods or relevant services  subject to Clause (1) of article (48) of the Decree -Law.  
4. If Clause (1) of article (48) of the Decree -Law applies, the taxabl e person  shall :  
a. charge the t ax on the value of the relevant goods or relevant services  at the rate which 
would be applicable if the supply of the relevant goods or relevant services  is made by a 
taxable person  within the State.  
b. declare and pay the due tax in the tax return  which relates to the tax period  in which the 
date of supply  for the relevant goods or relevant services  takes place .  
5. If the taxable person  calculates the d ue tax in accordance Clause (1) of article (48) of the 
Decree -Law, such  taxable person  shall keep the following documents relating to the supply:  
a. The supplier’s invoice containing  the details and consideration paid for the relevant goods 
or relevant services . 
b. In case of relevant  goods, a statement issued by  the relevant Customs Department 
showing the details and value of the relevant  goods.  
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  47

Article (49)  
Payments for Goods Transferred to Another  Applying State s 
1. For the purposes of Clause (2) of article (48) of the Decree -Law, the taxable person  shall  pay 
the due tax  by using the payment method identified  by the Authority.  
2. The payment referred to in Clause (1) of this Article shall be made before or at the time of  the 
importation  of the goods  as determined  by the Authority , unless expressly approved by the 
Authority to defer the payment of the due tax .

Article (50)  
Import ation  by Unregistered Persons  
1. If relevant  goods are imported by a person  not registered for the t ax or if the taxable person  
does not meet the conditions stipulated in Clause (1) of article (48) of this Resolution , the t ax 
shall be paid to the Authority by or on behalf of the person  before the goods  may be released.  
2. The Customs Departments shall cooperate with the Authority to  ensure that the payable tax 
on import ation  has been settled before releasing the goods .  
3. The t ax referred to in Clause (1) of this Article shall  be settled using the payment method 
determined  by the Authority.  
4. For the purposes of Clause (1) of this Article, if a person  who is not registered for the t ax 
imports goods hires  an agent who acts on behalf of the person  for the purposes of importing 
the goods  into the State and who is registered for the t ax in the Stat e, the agent shall be 
responsible for the payment of the tax  in respect of the importation  of goods .  
5. The obligation on the agent under Clause (4) of this Article to pay the t ax on behalf of another 
person shall be met as part of the agent ’s tax return  and pay the t ax as though he imported 
the goods  himself.  
6. An agent who has paid tax in accordance with Clause (4) of this Article shall not recover as 
input tax any tax paid on behalf of another person in accordance with obligations set out in 
this Article.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  48 
 7. If an agent pays the  tax on behalf of another person is accordance with this Article, it shall 
issue a statement to that other person which contains, at the minimum, all of the following 
details:  
a. The name, address, and tax registration  number of  the agent.  
b. The date upon which the statement is issued.  
c. The date of import ation  of the relevant goods.  
d. A description of the imported goods.  
e. The amount of tax  paid by the agent to the Authority in respect of the imported goods.  
8. The statement issued by  the agent to a person  in accordance with this Article shall be treated 
as a tax invoice  for the purposes of the documentation requirements in Paragraph (a) of 
Clause (1) of article (55) of the Decree -Law.  
 
Part  Nine  
Designated Area s

Article (51)  
Designated Areas 
1. Any designated area specified by a resolution of the Cabinet shall be treated as being outside 
the State and outside the applying states, subject to the following conditions :  
a. The designated area is a specific fenced geographic area and has security measures and 
customs controls in place to monitor entry and exit of individuals and movement of goods  
to and from the area.  
b. The designated area shall have internal procedures regarding the method of keeping, 
storing,  and processing of goods  therein.  
c. The operator of th e designated area complies with the procedures set by the Authority.  
If the designated area changes the manner of operating or no longer meets any of the 
conditions imposed on it that led to it being specified as a designated area under the 
Cabinet Resolu tion , it shall be treated as if being inside the State.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  49 
 2. The transfer of goods  between designated areas shall not be subject to the t ax if the following 
two conditions are met:  
a. If the goods , or part thereof, are not released, and are not in any way used or altered during 
the transfer between the designated areas.  
b. If the transfer is undertaken in accordance with the rules for customs suspension in 
accordance with the  GCC Common Customs Law.  
3. If goods are moved between designated areas, the Authority may require the owner of the 
goods  to provide a financial guarantee for the payment of tax , which such  person may 
become liable for if the conditions for movement of goods  are not met.  
4. If a suppl y of goods  is made within a designated area to a person  to be used by him or a third 
person, then the place of supply shall be the State unless the goods  are to be incorporated 
into, attached to, or otherwise form part of or are used in the production or sale of another 
good s located in the same designated area which itself is not consumed.  
5. If a supply of goods is made within a designated area to a person to be used by him or by a 
third person, th en the place of supply shall be the State, except for any of the following 
situations:  
a. The goods are to be incorporated into, attached to or otherwise form part of or are 
used in the production or sale of another goods located in the same designated area 
which itself is not consumed.  
b. The goods have been delivered to a place outside the State with the supplier keeping 
a commercial or official record proving it and a customs record proving that the goods 
were evacuated from the designated area.  
c. The goods have  been evacuated from the designated area to a place inside the State 
with the supplier keeping an official record proving that the value added tax has been 
applied to this import.  
6. The place of supply of water or any form of energy shall be considered to be  inside the State 
if the place of supply is in a designated area.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  50 
 7. In exception to the provisions of clause (6) of this article, the place of supply shall be 
considered outside the state if the suppled freight or delivery services were directly related to 
goods whose place of supply is outside the State in accordance with paragraphs (b) and (c) of 
clause (5) of this article, and the following conditions have been collectively met :  
a. The freight or delivery services are supplied by the same supplier of goods .  
b. The supplier of goods shall be a non -resident and not registered for tax . 
c. The goods shall be sold through an electronic sales platform; and by "electronic sales 
platform" it is means any type of electronic platform for online sales, including electronic  
websites and applications, and that gathers people from sellers and buyers, and which 
enables the selling and buying of goods with or without freight or delivery services.  
d. The person owning the electronic sales platform shall not be the supplier of goods.  
8. The place of supply of water or any type of energy shall be considered inside the State if the 
place of supply was located in the designate area . 
9. The goods present inside the designated area, for which its owner has not settled its tax, shall 
be treated a s if it was imported into the State if:  
a. The goods were consumed by the owner, unless the goods are incorporated into, attached 
to or otherwise form part of or are used in the production of other goods located in a 
designated area which are not consumed.  
b. The goods are unaccounted for.  
10. Any person established, registered or which has a place of residence in a designated area shall 
be d eemed to have a place of residence in the State for the purposes of the Decree -Law.  
 
 
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  51 
 Part  Ten  
Calculation of the Due Tax

Article (52)  
Input Tax Refund  in Respect of Exempt ed Supplies  
1. Supplies referred to in paragraph (c) of Clause (1) of article (54) of the Decree -Law are the 
supplies of financial Services, where the place of supply of these Services is treated as outside 
the State and the recipient  of services  is outside the State at the time when the services  are 
performed.  
2. For the purpose of Clause (1) of this Article a person  is “outside the State” even if they are 
present in the State, provided it is only a short -term presence in the State of less than a month, 
or that his presenc e is not effectively connected with the supply.  
3. Any tax paid by a person  in another applying state  on the importation  of goods  to the State 
through that applying state  or on the supply of goods  to this person in such  applying state  
where the goods  are then transferred to the State, is refundable  in the State if the relevant 
Goods will be used or are intended to be used in accordance with Clause (1) of Article 54 of 
the Decree -Law and the following conditions are satisfied:  
a. The tax able person  keeps  evidence that he has paid the t ax in another applying state  in 
respect of the relevant goods.  
b. The tax able person  has not recovered the tax  paid in any other applying state .  
c. The tax able person  has complied with any additional reporting requirement that t he 
Authority may specify.  
4. If the first supply of a residential building by a taxable person  is by way of lease which is zero -
rated in accordance with provisions of the Decree -Law, the tax able person  may recover Input 
Tax in full in respect of that supply regardless of any future intention to make later exempt 
supplies in respect of that resident ial building.  
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  52

Article (53)  
Non -Refundable  Input Tax  
1. The i nput tax shall be non -refundable  if incurred by a person  in respect of the following 
taxable supplies:  
a. If the person  is not a government agency  as specified in a Cabinet Resolution  in 
accordance with article (10) and (57) of the Decree -Law, and there is provision of 
entertainment services to anyone not employed by the person , including customers, 
potential customers, officials, or shareholder or other owners or investors.  
b. If a motor vehicle is purchased, rented,  or leased for use in the business and is available 
for personal use by any person.  
c. If goods or services  are purchased to be used by employees for no charge to them and for 
their personal  benefit including the provision of entertainment services, except in the 
following cases:  
1. If it is a legal obligation to provide such  services or goods  to such  employees under 
any applicable labor  law in the State or designated area.  
2. It is a contractual obligation or documented policy to provide such  services or goods  
to such  employees in order that they may perform their role and it can be proven to 
be normal business practice in the course of employing those people . 
3. If the provision of goods or services  is a deemed supply under the provisions of the 
Decree -Law.  
2. For the purposes of this Article:  
a. The “entertainment services” mean hospitality of any kind, including the provision of 
accommodation, food and drinks which are not provided i n a normal course of a meeting, 
access to shows or events, or trips provided for the purposes of pleasure or entertainment.  
b. The “motor vehicle” mean s a road vehicle which is designed or adapted for the 
conveyance of no more than 10 people including the dr iver. A motor vehicle shall exclude 
a truck, forklift, hoist,  or other similar vehicle.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  53 
 3. Provision of catering and accommodation services shall not be treated as entertainment 
services where it is provided by a transportation service operator, such as an a irline, to 
passengers who have been delayed.  
4. A motor vehicle shall not be treated as being available for private use if it is within any of the 
following categories:  
a. a tax i licensed by the competent authority within the State .  
b. a motor vehicle registered  as, and used for purposes of an emergency vehicle, including 
by police, fire, ambulance, or similar emergency service . 
c. a vehicle which is used in a vehicle rental business where it is rented to a customer.

Article (54)  
Special Cases of Input tax  
1. The amount of refundable  tax that can be reclaimed by a taxable person  in the tax period  in 
relation to the supply of goods or services  made to him, is the amount of Input Tax that relates 
to the portion of consideration in respect of the supply that has b een paid during such  tax 
period .  
2. For the purposes of paragraph (b) of Clause (1) of article (55) of the Decree -Law, a taxable 
person  shall be treated as having made a payment of consideration for a supply to the extent 
that the tax able person  intends to m ake the payment before the expiration of six months after 
the agreed date for the payment for the supply.  
 
 
 
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  54 
 Part  Eleven  
Apportionment of Input Tax

Article (55)  
Apportionment of Input Tax  
1. If there are quarterly tax period s, the tax  year shall be as follows:  
a. If a taxable person ’s tax period  ends on 31 January and quarterly thereafter, the tax able 
person ’s tax  year shall end on 31 January of every year.  
b. If a taxable person ’s tax period  ends on last day of February and quarterly ther eafter, the 
taxable person ’s tax  year shall end on the last day of February of every year.  
c. If a taxable person ’s tax period  ends on 31 March and quarterly thereafter, the tax able 
person ’s tax  year shall end on 31 March of every year.  
2. If the tax period  is 12 months, the tax  year shall be the same as the tax period .  
3. If the tax period  is 1 month, the tax  year shall be the total tax period s in the year ending on 
last day of the calendar year.  
4. In any other case where Clauses (2) and (3) do not apply, the Authority shall specify the tax  
year.  
5. To determine the input tax that could be refundable , the tax able person  shall apportion the 
input tax as follows:  
a. The input tax on supplies that wholly rel ate to supplies as specified in Clause (1) of Article 
(54) of the Decree -Law made by the tax able person  shall be refundable  in full.  
b. The input tax that does not relate to supplies as specified in Clause (1) of article (54) of 
the Decree -Law made by the taxable person  shall not be refundable  unless provisions 
allow otherwise.  
c. The input tax that partly relates to supplies as specified in Clause (1) of article (54) of the 
Decree -Law and partly not, shall be apportioned in accordance with Clause (6) of this  
Article and only that part that relates to supplies as specified in Clause (1) of article (54) 
of the Decree -Law shall be refundable .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  55 
 6. The input tax that could be refundable  shall be calculated as follows:  
a. The tax able person  shall calculate the percentag e of refundable  tax calculated by 
reference to article (54) of the Decree -Law to the sum of refundable  tax and non -
refundable  tax for the tax period .  
b. The percentage calculated under paragraph (a) of this Clause shall be rounded to the 
nearest whole number .  
c. The percentage calculated under paragraph (b) of this Clause shall be multiplied by the 
amount of the i nput tax referred to in Paragraph (c) of Clause (5) of this Article to establish 
the refundable  portion of such  input tax.  
7. The calculations referred to above shall be undertaken in respect of each tax period  where 
input tax incurred relates to making exempt ed supplies or to activities that are not in the 
course of the b usiness.  
8. At the end of each tax year the tax able person  shall undertake the calculation mentioned in 
Clause (6) of this Article, but in respect of the entire tax year just ended in the first tax period  
of its subsequent tax year.  
9. The input tax properly refundable  for the tax  year just ended as described in Cl ause (8) of this 
Article shall be compared to the input tax amount actually recovered in all the tax period s 
making up the tax  year, and an adjustment to the refundable  tax shall be made in the tax 
period  mentioned in Clause (8).  
10. If the difference in any tax year between the refundable  tax as calculated under this Article 
and the refundable  tax which would arise if a calculation is made which reflects the actual use 
of the goods  and services to which the input tax relates, exceeds AED 250,000 (two hundred 
fifty thousand dirhams), the tax able person  shall, in the tax period  referred to in Clause (8) of 
this Article, make an adjustment to the input tax in respect of the difference.  
11. If the application of the calculations mentioned in this Article give s a result which the tax able 
person  considers would not reflect the actual extent to which the input tax relates to making 
taxable supplies, he may apply to the Authority to authorize  the u se of an alternative basis of 
calculation based on the list of accepted mechanisms issued by the Authority.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  56 
 12. The Authority may accept that the tax able person  may use an alternative mechanism of 
apportionment of input tax than that referred to in this Artic le from such future date and as 
per any further conditions as determined by the Authority.  
13. The tax able person  may only apply to change the alternative mechanism with effect from at 
least two tax years after he was first approved to use it.  
14. The Authority may request such information from the tax able person  as it believes is 
necessary to make a decision regarding application made under Clause (11) of this Article.  
15. If the Authority accepts the application made under Clause (11) of this Article, it shall iss ue a 
notification to the tax able person  setting out the alternative calculation method and 
conditions for using of such method.

Article (56)  
Adjustment of Input Tax Post -Refund  
1. If the i nput tax is refunded  because it is attributed to supplies as specified in Clause (1) of 
article (54) of the Decree -Law but, before the consumption of the goods  or services  upon 
which that input tax is incurred the input tax becomes  not so attributable, then the tax able 
person  shall be requ ired to repay such  input tax.  
2. If the i nput tax is not refunded  because it is not attributed to supplies specified in Clause (1) 
of article (54) of the Decree -Law but, before the consumption of the goods  or services  upon 
which such  input tax is incurred, the input tax bec omes attributable to supplies as specified 
in Clause (1) of A rticle (54) of the Decree -Law, then the tax able person  shall be able to recover 
the i nput tax attributable to the use of the goods  or services  for making such supplies.  
3. If the i nput tax is treated as subject to apportionment to calculate the input tax tha t could be 
refunded , but before the consumption of the goods  or services  upon which such  input tax is 
incurred, the use of such  input tax changes, then it shall be adjusted as follows:  
a. If it becomes attributable to supplies as specified in Clause (1) of article (54) of the Decree -
Law , then the tax able person  shall be able to recover the i nput tax not previously Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  57 
 recovered to the extent that it is attributable to the use of the goods  or services  for making 
such supplies.  
b. If it ceases to be attributable to any supplies specified in Clause (1) of article (54) of the 
Decree -Law,  then the tax able person  shall be required to repay such  input tax.  
4. The adjustments for change in use of goods or services  under this Article shall be made only 
if all of the following  conditions are met:  
a. The change in use occurred within five years of the date of supply  of the relevant goods 
and services .  
b. The tax able person  is not required to adjust the same input tax under mechanisms 
provided in Articles (55) and (57) of this Resolu tion  in which case those mechanisms will 
apply.  
 
Part  Twelve  
Capital Asset Scheme

Article (57)  
Assets Considered Capital Assets  
1. A Capital Asset is a single item of expenditure of the business amounting to AED 5,000,000 
or more excluding the t ax, on which tax is payable and which has estimated useful life equal 
or longer than:  
a. 10 years in case of a building or a part thereof.  
b. 5 years for all Capital Assets other than buildings or parts  thereof.  
2. Items of stock, which are for resale, shall not be treated as capital assets.  
3. Expenditure consisting of smaller sums which collectively amount to AED 5,000,000 or more 
shall be treated as a single item of expenditure of AED 5,000,000 or more fo r the purposes of 
this Article where the sums are staged payments for any of the following:  
a. For the purchase of a building.  
b. For the construction of a building.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  58 
 c. In relation to an extension, refurbishment, renewal, fitting out, or other work undertaken 
to a building, except that where there is a distinct break between any such works being 
undertaken they shall be taken to be separate items of expenditure.  
d. For the purchase, construction, assembly or installation of any goods  or immovable 
property where components are supplied separately for assembly.

Article (58)  
Adjustments Under the Capital Assets Scheme  
1. A capital asset eligible for the Capital Asset Scheme shall be monitored and the input tax 
incurred shall be adjusted, as required in accordance with the provisions of this Article, over 
a period of either (10) ten consecutive years for buildings or parts thereof or (5) five 
consecutive years for other capital assets, commencing on the day on which the owner first 
uses the  capital asset for the purposes of its business.  
2. Notwithstanding the provisions of  Clause (1) of this Article, if a capital asset is destroyed, sold, 
or otherwise disposed of before the end of the period referred to in Clause (1) of this Article, 
the Capi tal Asset Scheme shall cease in respect of the asset in the tax  year in which the asset 
was destroyed, sold,  or disposed of.  
3. The tax  year in which the capital asset is acquired shall be treated as Year 1 for the purposes 
of the Capital Asset Scheme.  
4. A taxable person  shall keep a capital asset register and record therein the input tax  incurred 
on the capital asset  in Year 1 (represented by “W” in this Article) as  well as details of any 
adjustments made to the input tax  calculations under this Article.  
5. The refundable input tax  on the capital asset  in Year 1 after any adjustment that may be due 
under article (58) of the Decree -Law shall be recorded together with th e percentage that gave 
rise to that refund  (referred to as “X” in this Article).  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  59 
 6. At the end of each year from Year 2 onwards, the tax able person  shall calculate the percentage 
of Refundable  Tax for that Capital Asset for that year in accordance with Artic le (58) of the 
Decree -Law (referred to as “Q” in this Article).  
7. If Q is not equal to X, the tax able person  shall perform the calculation described in Clauses (8) 
to (11) of this Article  and shall make an adjustment to his Input Tax.  
8. The tax able person  shall calculate an amount (referred to as “R” in this Article) as:  
a. One tenth of W multiplied by Q if the capital asset  is a building or a part thereof; or  
b. One fifth of W multiplied by Q if the capital asset  is not a buildings or a part thereof.  
9. The tax able person  shall calculate an amount (referred to as “Z” in this Article) as:  
a. One tenth of W multiplied by X if the capital asset  is a building or a part thereof.  
b. One fifth of W multiplied by X if the capital asset  is not a buildings or a part thereof.  
10. If R is more than Z, the tax able person  shall increase his input tax by the difference.  
11. If R is less than Z, the tax able person  shall reduce his input tax by the di fference.  
12. If the capital asset is disposed of by the tax able person  in any year other than the final year or 
the tax able person  deregisters from tax and is required to account for tax on the asset as a 
deemed supply, the use to which the capital asset is deemed to have been put in any 
remaining years will be:  
a. For making taxable supplies, where it is disposed of by way of a supply or deemed supply 
that is subject to the t ax or would be subject to the t ax were it to be made in the State.  
b. For making exempt ed supplies, where it is disposed of by way of a supply that is exempt 
or would be exempt were it to be made in the State.  
c. Not in the course of conducting business, where is it disposed of by way of a transaction 
that is not deemed as supply in the course of business, unless it is deemed as a supply 
according to the meaning provided in Clause (2) of article (7) of the Decree -Law.  
13. If a taxable person  transfer s his capital assets as part of a transfer of his Business or a part 
thereof according to Clause (2) of article (7) of the Decree -Law, or to become a member of a 
tax group , or to leave a tax group  and immediately become a taxable person  on a stand -alone 
basis, then the tax  year then applying shall end on the day the tax able person  transfers the Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  60 
 business or part of the Business, or becomes or ceases to be part of a tax group . On the next 
day, the next tax year shall commence with the owner of the capital assets.  
14. If a person  who registers for tax has already owned a capital asset for the purpose of his 
business before registration for tax, Year 1 shall be deemed to have commenced on the date 
of first use by such  person.  
15. For the purposes of Clauses (12) and (13) of this Article, any adjustments that may be required 
in respect of any such remaining years shall be included in the tax return  relating to the tax 
period  in which the capital asset  is disposed of.  
16. Any adjustment s other than required under Clauses (12) and (13) of this Article shall be made 
in the tax period  mentioned in Clause (8) of article (55) of this Resolution .  
 
Part  Thirteen  
Tax Invoices and Tax Credit Notes

Article (59)  
Tax Invoices  
1. A tax invoice  shall contain all of the following particulars:  
a. The phrase  “Tax Invoice” clearly displayed on the invoice.  
b. The name, address, and tax registration  number of the registrant  making the supply.  
c. The name, address, and tax registration  number of the recipie nt where he is a registrant .  
d. A sequential tax invoice  number or a unique number which enables identification of the 
tax invoice  and the order of the tax  invoice  in any sequence of invoices.  
e. The date of issuing the tax  invoice .  
f. The date of supply if diff erent from the date the tax  invoice  was issued.  
g. A description of the goods  or services  supplied.  
h. For each good s or service, the unit price, the quantity or volume supplied, the rate of tax  
and the amount payable expressed in AED.  
i. The amount of any discount offered.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  61 
 j. The gross amount payable expressed in AED.  
k. The tax  amount payable expressed in AED together with the rate of exchange applied 
where the currency is converted from a currency o ther than the UAE dirham.  
l. If the invoice relates to a supply under which the recipient  of goods  or recipient  of services  
is required to account for the t ax, a statement that the recipient  is required to account for 
the t ax, and a reference to the relevant  provision of the Decree -Law.  
2. A simplified tax invoice  shall contain all of the following particulars:  
a. The phrase  “Tax Invoice” clearly displayed on the invoice.  
b. The name, address, and tax registration  number of the registrant  making the supply.  
c. The date of issuing the tax  invoice .  
d. A description of the goods  or services  supplied.  
e. The total consideration and the tax  amount charged.  
3. If there are or will be sufficient records available to establish the particulars of a supply,  a 
taxable person  is not required to issue a tax invoice  for the supply where the supply is a wholly 
zero -rated supply.  
4. If a taxable person  is required to issue a tax invoice , the tax  invoice  shall  meet the 
requirements of Clause (1) of this Article.  
5. Notwithstanding the provisions of  Clause (4) of this Article, the tax able person  may issue a 
tax invoice  that meets the requirements of Clause (2) of this Article in either of the following 
cases :  
a. If the recipient  of goods  or recipient  of services  is not a registrant .  
b. If the recipient  of goods  or recipient  of services  is a registrant  and the consideration for 
the supply does not exceed (AED 10,000 ).  
6. A taxable person  shall not issue separate tax invoice s in respect of supplies where he makes 
more than one supply of goods or services  to the same Person and those supplies are included 
on a summary tax invoice  issued to the recipient  of goods  or recipient  of services  in the same 
calendar month as the date of supply  of those supplies.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  62 
 7. If the Authority considers that there are or will be sufficient records available to establish the 
particulars of any supply or class of supplies, and that it would be impractical to require that 
a tax invoice  be issued by the tax able person , the Authority m ay determine that, subject to 
any conditions that the Authority may consider necessary:  
a. Any of the particulars specified in Clauses (1) or (2) of this Article shall not be contained 
on a tax invoice .  
b. A tax invoice  is not required to be issued in certain cases.  
8. The tax able person  may issue a tax invoice  by electronic means provided that:  
a. The tax able person  shall  be capable of securely storing a copy of the electronic tax invoice  
in compliance with the record keeping requirements.  
b. The authenticity of ori gin and integrity of content of the electronic tax invoice  shall  be 
guaranteed.  
9. If a recipient agrees to raise a tax invoice  on behalf of a registrant  supplier in respect of a 
supply of goods or services , that document shall be treated as if it had been issued by the 
supplier if the following conditions are met:  
a. The recipient  of the goods  or services  is a registrant .  
b. The supplier and the recipient  agree in writing that the supplier shall not issue a tax 
invoice  in respect of any supply to which this Clause applies.  
c. The tax  invoice  shall contain the particulars required under Clause (1) of this Article.  
d. The phrase  “tax invoice  raised by buyer” shall be clearly displayed on the tax  invoice .  
10. If a tax invoice  is issued pursuant to Clause (9) of this Article, any invoice issued by the 
supplier in respect of that supply shall be deemed not to be a tax invoice .  
11. If an agent who is a registrant  makes a supply of goods and services for and on behalf of the 
principal of that agent, that agent may issue a tax invoice  in relation to that supply as if that 
agent had made the supply and  provided that the principal shall not issue a tax invoice .  
12. If the supply of goods or services  is considered as supplied in an applying state , the tax able 
person  shall  include the following additional particulars in the document issued:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  63 
 a. The tax  registration  number of the recipient  of goods or services  issued to him by the 
competent authority of the applying  state  in which the supply is treated as taking place.  
b. A statement identifying the supply as between the State and an applying state .  
c. Any other information determined  by the Authority.

Article (60)  
Tax Credit Note  
1. The tax credit note  shall contain the following:  
a. The phrase  “Tax Credit Note” clearly displayed on the invoice.  
b. The name, address, and tax registration  number of the registrant  making the supply.  
c. The name, address, and tax registration  number of the recipient  where he is a registrant .  
d. The date of issuing the tax credit note .  
e. The value of the supply shown on the tax  invoice , the correct amount of the value of the 
supply, the difference between those two amounts, and the tax  charged that relates to 
that differ ence in AED.  
f. A brief explanation of the circumstances giving rise to the issuing of the tax credit note .  
g. Information sufficient to identify the supply to which the tax credit note  relates.  
2. If, on application by a taxable person , the Authority considers that there are or will be 
sufficient records available to establish the particulars of any supply or class of supplies, and 
that it would be impractical to require that a tax credit note  be issued by the tax able person , 
the Authority may determine any of the following, subject to any conditions that the Authority 
may consider necessary:  
a. Any one or more of the particulars specified in Clause (1) of this Article shall not be 
contained on a tax credit note .  
b. A tax credit no te is not required to be issued.  
3. The tax able person  may issue a tax credit note  by electronic means provided that:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  64 
 a. The tax able person  shall  be capable of securely storing a copy of the electronic tax credit 
note  in compliance with the record keeping requ irements.  
b. The authenticity of origin and integrity of content of the electronic tax credit note  shall  be 
guaranteed.  
4. If a recipient of goods  or recipient  of services  agrees to raise a tax credit note  on behalf of a 
registrant  Supplier in respect of a supply of goods or services , that document shall be treated 
as if it had been issued by the supplier if the following conditions are met:  
a. The recipient  of goods  or recipient  of services  is a registrant .  
b. The supplier and the reci pient  of goods  or recipient  of services  agree that the supplier shall 
not issue a tax credit note  in respect of any supply to which this Clause applies.  
c. The tax credit note  shall contain the particulars required under Clause (1) of this Article.  
d. The phra se “tax credit note  created by buyer” shall be  clearly displayed on the tax credit 
note .  
5. If a tax credit note  is issued pursuant to Clause (4) of this Article, any tax credit note  issued by 
the supplier in respect of that supply shall be deemed not to be a tax credit note .  
6. If an agent who is a registrant  makes a supply of goods and services for and on behalf of the 
principal of that agent, that agent may issue a tax credit note  in relation to that supply as if 
that agent had made the supply and  provided that the principal shall not issue a tax credit 
note .  
7. If approval has been granted by the Authority under Clause (2) of this Article, that approval 
may be withdrawn at any time whe re the Authority considers that the conditions of that 
approval have not been met.

Article (61)  
Fractions of Fils  
If the tax  levied  on a supply is calculated to a fraction of a Fils, the tax able person  is permitted to 
round the amount to the nearest Fils on a mathematical rounding.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  65 
 Part  Fourteen  
Tax Returns and Tax Periods

Article (62)  
Duration of the Tax Period  
1. The standard tax period  applicable to a taxable person  shall be a period of three calendar 
months ending on the date that the Authority determines.  
2. Notwithstanding the provisions of  Clause (1) of this Article, the Authority may assign a person  
or class of persons a shorter or longer tax period  where it considers that a non -standard tax 
period  length is necessary or beneficial to:  
a. Reduce the risk of tax  Evasion.  
b. Enable the Authority to improve the monitoring of compliance or collection of tax  
revenues.  
c. Reduce the administrative burden on the Authority or the compliance burden on a person  
or class of persons.  
3. If a taxable person  is assigned the standard tax period , he may request that the tax period  ends 
with the month as requested by him, and the Authority may accept such request at its 
discr etion.

Article (63)  
Tax Periods in the Case of Loss of Capacity  
1. If a person  becomes incapacitated, his current tax period  shall  end on the day before the 
person  became an incapacitated person. A new tax period  shall  commence on the day the 
person  became incapacitated person in the name of the legal representative.  
2. For the purposes of Clause (1) of this Article , the  “incapacitated person” means a registrant  
who dies, or goes into liquidation or receivership, or becom es bankrupt or incapacitated.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  66 
 3. For the purposes of the new tax period referred to in Clause (1) and subsequent tax periods, 
the legal representative shall  be treated as the registrant  himself for the purposes of the 
Decree -Law and this Resolution  throughou t the period of incapacitation.

Article (64)  
Tax Returns and Payment of the Tax  
1. A tax return  shall  be delivered  to the Authority no later than the 28th day following the end of 
the relevant tax period  or by such other date as determined  by the Authority.  
2. A person  whose registration has been cancelled shall  provide a final tax return  for the last tax 
period  for which he was registered.  
3. The taxable person  shall pay the payable tax by the means determined  by the Authority so 
that it is received by the Authority no later than the date specified in Clause (1) of this Article.  
4. If the refundable  tax for a tax period  exceeds the d ue tax for such  tax period , the excess 
refundable  tax may be repaid to the tax able person  in accordance with the provisions of the 
Decree -Law and Federal Law  No. (7) of 2017.  
5. Any tax return  shall  contain such details as the Authority may require in addition to at least 
the following data :  
a. The name, addre ss and TRN of the registrant ;  
b. The tax period  to which the tax return  relates.  
c. The date of the tax return submission.  
d. The value of tax able supplies made by the person  in the tax period  and the output tax 
charged.  
e. The value of zero -rated taxable supplies made by the person  in the tax period .  
f. The value of exempt ed supplies made by the person  in the tax period .  
g. The value of any supplies subject to the provisions of Clauses (1) and (3) of article (48) of 
the Decree -Law.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  67 
 h. The value of expenses incurr ed in respect of which the person  seeks to recover the i nput 
tax and the amount of the r efundable  tax.  
i. The total value of the due tax  and the refundable tax for the tax period .  
j. The payable tax for the tax period .  
 
Part  Fifteen  
Refund  of Excess Tax

Article (65)  
Refund  of Excess Tax  
If the tax able person  has excess refundable  tax for a tax period  and submits a request to the 
Authority by the means specified by the Authority to be repaid the amount of the excess, then the 
Authority shall refund  the amount to the tax able person  within the timelines and according to 
the procedures set out  in Federal Law  No. (7) o f 2017 on Tax Procedures.  
 
Part  Sixteen  
Other Provisions Relating to Refund

Article (66)  
New Residence  
1. If a person  owns or acquires land in the State on which he builds, or authorizes  the 
construction of, his own residence, he shall be entitled to make a claim to the Authority to 
refund  the tax  on the expenses of constructing the residence.  
2. For the purposes of Clause (1) of this Article:  
a. The claim may only be made by a natural person  who is a national of the State.  
b. The claim shall  relate to a newly constructed building to be used exclusively  as residence 
of the person  or his family.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  68 
 c. The claim may not be made in connection with a building which  will not be used 
exclusively as a residence by the person  or his family, for example if it is to be used as a 
hotel, guest hostel , hospital or for any other purpose not consistent with being use d as a 
residence.  
3. The refund claim in accordance with  this Article shall  be filed  within six ( 6) months from the 
date of completion of the newly built residence. For the purposes of this Clause, a ny newly 
built residence shall be  considered completed at t he earlier of the date the residence becomes 
occupied, or the date when it is certified as completed by a competent authority in the State, 
or as may otherwise be stipulated by the Authority.  
4. The refund claim shall  be submitted to the Authority in such ma nner and contain details as  
determined by  the Authority.  
5. If the Authority refunds the  tax in accordance with this Article, and following the receipt of 
such refund  the person  breache s any  condition stipulated in Paragraph (c) of Clause (2) of 
this Article, the Authority may require the person  to repay the amount of refunded tax.  
6. The categories of expenses on which the person  may claim a refund  of tax  under this Article 
are:  
a. Services provided by contractors, inclu ding services of builders, architects, engineers, and 
other similar services necessary for the successful construction of the building .  
b. Building materials, being goods of a type normally incorporated by builders in a 
residential building or its site, but not including furniture or electrical appliances.

Article (67)  
Visitors for Business Purposes  
1. The Authority shall apply  the VAT Refunds for Foreign Businesses Scheme to allow the refund  
of tax  on expenses incurred in the State by a foreign entity which has no business 
establishment  or fixed establishment in the State or the applying  state , and is not registered 
in the State .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  69 
 2. For the purpose s of this Article, the “foreign entity” means  any person that practices a  business 
as defined in this Resolution  and is registered as an establishment with the competent 
authority in the state  in which it is established.  
3. Any foreign entity shall  not be entitled to make a claim under the VAT Refunds for Forei gn 
Businesses Scheme in the following cases:  
a. If it makes supplies which have a place of supply in the State, unless the recipient  of goods  
or recipient  of services  is oblig ated to calculate  the tax  on such  supplies in accordance 
with Clause (1) of article (48) of the Decree -Law.  
b. If the input tax  is related  to goods or services  for which the tax  may  not be refundable  in 
accordance with article (53) of this Resolution .  
c. If the foreign entity belongs to  a state  that does not permit VAT refund, in similar cases, to  
entities that belong to the State.  
4. A foreign tour operator shall  not be entitled to make a claim under the VAT Refunds for 
Foreign Businesses Scheme in connection with undertaking activities as a  tour operator.  
5. The claim for any refund shall be made on an electronic form provided by the Authority for 
such  purpose.  
6. The claim form shall contain the particulars as may be required by the Authority , including:  
a. Name and address of the foreign entity ;  
b. Nature of activities of the foreign entity ;  
c. Details of the registration of the foreign entity with the competent authority in the state  
where it is established ;  
d. Description of reasons for incurring expenses in the State ;  
e. Description of activities carr ied out  in the State ;  
f. Details of expenses incurred in the State during the period of the claim.  
7. The claim shall be accompanied by any  documents or evidence as may be required by the 
Authority.  
8. The period of the claim shall be (12) calendar months.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  70 
 9. The minimum tax that may be claimed under the VAT Refunds for Foreign Businesses Scheme 
shall be (AED 2,000 ) two thousand dirhams .  
10. Notwithstanding the provisions of  Clause (1) and Paragraph (c) of Clause (3) and Clause (8) 
of this Article, the b usinesses resi ding in any GCC State that is not considered to be an applying  
state  according to the Decree -Law and this Resolution , may claim refund of tax  incurred on 
goods and services supplied to them in the State.

Article (68)  
Tourist Visitors  
1. The Cabinet may issue a resolution  applying  the Tax Refunds for Tourists Scheme 
determining  the following:  
a. The effective date of the Scheme ;  
b. The mechanism for tax refunds ;  
c. Controls  on claiming tax refunds ;  
d. Processes for any verifications to be made  under the Scheme ;  
e. Any other conditions or procedures deemed  necessary by the Cabinet for application  of 
the Scheme.  
2. The following conditions shall apply to the Tax Refunds for Tourists Scheme:  
a. The goods  subject  to the Tax Refunds for Tourists Scheme shall  be supplied to an overseas 
tourist who is in the State during the purchase of the goods  from the supplier.  
b. At the date of supply , the overseas tourist shall intend  to depart from the State within 
ninety (90) days from the date of supply , accompanied by the purchased goods .  
c. The relevant goods shall be  exported by the overseas tourist to a place outside the 
applying  state s within (3) months from the date of supply , subject to the conditions and 
verification  procedures  as may be imposed by the Authority.  
3. The “overseas tourist” means any natural person who is not resident in any of the applying  
state s and is not a crew member on a flight or aircraft leaving an applying state .  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  71 
 4. The Authority may publish a list of goods  that shall not be subject to the Tax Refunds for 
Tourists Scheme.

Article (69)  
Foreign Governments  
1. If the t ax is incurred by a foreign gov ernment , international organization , diplomatic bod y and 
mission, or by an official thereof, such  foreign government, international organization , 
diplomatic bod y and mission shall be entitled to submit a claim on the form issued by the 
Authority requesting repayment of the incurred tax.  
2. The application of Clause (1) of this Article shall be  subject to the following conditions:  
a. Goods and services shall be  acquired exclusively for official use.  
b. The state  in which the relevant foreign government, international organization , or 
diplomatic body or mission is established or has its official seat shall exclude the same 
type of bodies  of the State from the any tax burden s in such state .  
c. The refund claim shall be  consistent with the terms of any international treaty or other 
agreemen t concerning the tax liability of such foreign government, international 
organization , or diplomatic body or mission.  
d. The official of a foreign government, international organization , or diplomatic body or 
mission who benefits from the refund shall  not ho ld the UAE nationality or have a 
residence visa under the sponsorship of an entity other than the foreign government, 
international organization , or diplomatic body or mission itself, and shall  not engage in 
any business in the State.  
 
 
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  72 
 Part  Seventeen

Article (70)  
Transitional Provisions  
1. For the purposes of Paragraph (e) of Clause (1) of article (80) of the Decree -Law, “acceptance 
by the recipient  of goods ” means the stage  where the recipient of goods  considers that the 
supplier has fulfilled  his obligations towards him.  
2. In case of applying the provisions of  Clause (1) of article (80) of the Decree -Law, the date of 
supply shall be the date of entry into force of the Decree -Law only in respect of the amounts 
of considerati on received or specified in the invoice issued before the  entry into force of the  
Decree -Law.  
3. In case of Clause (3) of article (80) of the Decree -Law, the supply shall be deemed  to have 
been made  in accordance with the following provisions:  
a. For supplies to which the provisions of article (25) of the Decree -Law appl y, the date of 
supply shall be determined in accordance with Clauses (1) to (6) of the said  Article.  
b. For supplies to which the provisions of article (26) of the Decree -Law apply , the supply 
shall be deemed to be  made  in accordance with the provisions of the said  Article.  
4. For the purpose s of Clause (3) of this Article, if the date of supply in respect of a supply of 
goods or services is before the entry into force of the Decree -Law , part of the supply is made 
before the date of entry into force of the Decree -Law and another part thereof is  made after  
such date , the date of supply shall be treated as taking place after the entry into force of the 
Decree -Law for such  part of the supply actually taking place after the said  date.  
5. Any payment of consideration made before the date  of entry into force of  the Decree -Law 
shall be dis regarded to determ ine whether a supply takes place before such  date if, or to the 
extent that, it appears to the Authority that it would not have been so made but for the tax.  
6. In case of Clause (3) of article (80) of the Decree -Law, the consideration shal l be treated as 
exclusive of the t ax and the recipient of goods  or recipient of services shall be obligated to pay 
the VAT plus  the consideration if all of the following conditions are met:  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  73 
 a. If the recipient  of goods  or recipient  of services  is a registrant .  
b. If the recipient  of goods  or recipient  of services  has the right to recover the i nput tax 
incurred on the supply either in full or in part.  
7. Clause (6) of this Article shall apply only if the supplier requests , prior to the date of entry into 
force of the Decree -Law, from the recipient  of goods  or recipient  of services  to confirm the 
following  information :  
a. Whether the recipient  of goods  or recipient  of services  is registrant or is expect ed to be a 
registrant  on the date  of entry into force of the Decree -Law.  
b. The extent to which the recipient  of goods  or recipient  of services  expects to be able to 
recover the t ax incurred on such  supply.  
8. The recipient of goods or recipient of services shall, w ithin (20) working day s as of the 
date of receiving the request for  information referred to in Clause (7) of this Article, 
respond  to the supplier in writing and provide the same with the requested information.  
9. The supplier may rely on the information provided in accordance with Claus e (8) of this 
Article for the purposes of determining the tax treatment of the supply. If the recipient  of 
goods  or recipient  of services  intentionally provides false information that results in that the 
supplier has to  treat the consideration as inclusive of the t ax, the recipient  of goods  or 
recipient  of services  shall not be entitled to reclaim the input tax on such  supply.  
10. In case that  the recipient  of goods  or recipient  of services  fails to provide the information in 
accordanc e with Clause (8) of this Article, the supplier may treat the c onsideration in respect 
of the supply as exclusive of the tax and  request the recipient  of goods  or recipient  of services  
to pay the t ax.  
11. The supplier and the recipient  of goods  or recipient  of services  shall keep  the records of the 
request referred to in Clause (7) of this Article and the information provided in accordance 
with Clause (8) of this Article.  
12. For the purposes of Clause (6) of this Article, if the recipient  of goods  or recipient  of services  
makes sure that he is able  only to recover the i nput tax in part, the consideration shall be 
treated as exclusive of the t ax only to the extent that relates to  the refundable  input tax Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  74 
 percentage that the recipient  of goods  or recipient  of services  discloses to the supplier under 
Clause (8), and the remaining portion of the consideration relating to the supply shall  be 
treated as inclusive of the t ax.  
13. In all cases, the supplier shall remain liable  for calculat ing the t ax and pa ying it to the 
Authority.  
14. If a taxable supply  is treated as a supply made periodically or successively, the t ax shall not be 
charged on the portion of the consideration related  to a supply made before the date of entry 
into force of the Decree -Law.  
15. Any GCC State shall be treated as an applying state  in accordance with the provisions of the 
Decree -Law and this Resolution  if the following conditions are met:  
a. If such GCC State  treats the State similarly as an applying state  in its issued  legislation.  
b. Full compliance with the provisions of the Unified Agreement for Value Added Tax (VAT) 
of the Cooperation Council for the Arab States of the Gulf  (GCC).

Article (71)  
Requirements for Record -Keeping  
1. Subject to Clause (2) of this Article, any records required to be kept in accordance with the 
provisions of the Decree -Law shall  comply with the time periods, controls,  and conditions  for 
keeping records provided for in Federal Law  No. (7) of 2017 on Tax P rocedures and its 
Executive Regulations.  
2. Any records related to a real property  required to be kept shall be held for a period of (15) 
years following  the end of the tax period to which such records  relate.  
3. If a government agency  is listed in the Cabinet resolution under Clause (2) of article (72) of 
the Decree -Law, such  government agency  may:  
a. Reject  the Authority’s request to take any records or cop ies there of from the premises of 
the government agency ;  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  75 
 b. Establish  controls for the access of the Authority’s employees to the records and premises 
of the government agency .  
4. If the Authority holds any records of a government agency  listed by the Cabinet under Clause 
(2) of article (72) of the Decree -Law, the records shall be kept  in such manner th at they can 
be accessed only by the Authority ’s employees  expressly authorized  to review the records of 
such  government agency .

Article (72)  
Keeping Records of Supplies Completed  
1. The records of all goods and services supplied by or for the benefit of the taxable person, shall 
be kept and shall show the goods, services, suppliers and their agents in sufficient detail, so 
as to enable the Authority to easily identify such goods and s ervices, suppliers and agents .  
2. Subject to the provisions of article (78) of the Decree -Law, the taxable person that makes any 
taxable supply of goods or services in the State shall keep the transaction's records to prove 
the emirate wherein the fixed establishment related to such supply is located .  
3. Notwithstanding the provisions of Clause (2) above, if the taxable person that makes any 
taxable supply of goods or services does not have a fixed establishment in the State, the 
following shall apply:  
a. In the event that it has a headquarters in the State, it shall keep records of the transaction 
to prove the emirate in which the headquarters is located.  
b. In the event that it does not have a headquarters in the State, it shall keep records of the 
transaction t o prove the emirate in which the supply is received.  
4. Notwithstanding what is stated in Clauses (2) and (3) of this Article, in the event that the value 
of taxable supplies made by the taxable person through electronic commerce exceeds the 
amount of (AED 10 0,000,000) one hundred million dirhams During the calendar year, it shall 
keep records of the transaction to prove the emirate in which the supply is received for the 
period specified in Clause (6) of this Article.  Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  76 
 5. For the purposes of Clause (4) of this Ar ticle, electronic commerce refers to the transaction 
involving the sale of goods or services through electronic means, an electronic platform, a 
store on social media, or electronic applications in accordance with criteria and conditions 
specified by the M inister.  
6. For the purpose of implementing the provisions of Clause (4) of this Article, the provisions 
relating to taxable supplies via electronic commerce shall apply to each taxable person as 
follows:  
a. Starting from the first tax period that begins on or after 1 July 2023, and for a period of 18 
months for the taxable person whose taxable supplies made via electronic commerce has 
exceeded the limit stipulated in Clause (4) of this Article during the cale ndar year ending 
on December 31, 2022.  
b. For a period of two years starting from the first tax period of the calendar year that begins 
after the date of exceeding the taxable supplies made by the taxable person through 
electronic commerce, the limit stipulat ed in Clause (4) of this article.  
  
Part  Eighteen  
Final  Provisions

Article (73)  
The Authority shall be competent to issue clarifications and directives  regarding the application  
of the provisions of this Resolution .

Article (74)  
Repeal of Conflicting Provisions  
Any provision inconsistent or discrepant with the provisions of this Resolution is hereby repealed.  
 
 
 Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the 
Value Added Tax  77

Article (75)  
Publishing and Enforcement  
This Resolution  shall be published in the Official Gazette and shall enter  into force  as of 1st 
January 2018 at the earlier of the following :  
1. The time of opening of the business on 1 January 2018 ; or  
2. 7 am on 1st January 2018.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mohammad bin Rashid Al Maktoum  
Prime Min ister  
 
Issued by us:  
On: 7 Rabi al -Awwal 1439 A.H.  
Corresponding to: 26 November 2017  AD.