E-Commerce VAT Guide | VATGEC1

1. Introduction 

1.1. Overview 

1.1.1. Short brief 

VAT was introduced with effect from 1 January 2018 in the UAE. As a general consumption tax on the supply of goods and services, it applies to supplies which take place within the territorial area of the UAE.

1.1.2. Purpose of this document 

This document contains guidance about the VAT treatment of supplies of goods and services through electronic means, such as over the internet or a similar electronic network.
The purpose of this document is to provide guidance on how VAT affects businesses which operate within the e-commerce sector. 

1.1.3. Who should read this document? 

This document should be read by businesses involved in the e-commerce sector. 
It is intended to be read in conjunction with other relevant guidance published by the Federal Tax Authority (“FTA”). 

1.1.4. Status of the document 

In this guide, Federal Decree-Law No. 8 of 2017 on Value Added Tax is referred to as “Decree-Law” and Cabinet Decision No. 52 of 2017 on the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments is referred to as “Executive Regulation”. This guidance is n...