Unified UAE Legislation Database

VAT Public Clarification No. VATP027 of 2022 Goods Supplied in a Designated Zone, and Connected Shipping or Delivery Services

Status

In force

Issuing Authority

FTA

Effective date

XX.XX.XXXX

Official Link

https://

Issue

Taxable persons are required to impose VAT on every taxable supply and deemed supply made by that person in the UAE. VAT is also imposed on the

importation of concerned goods.

 

The supply of goods within a designated zone is generally regarded as being outside the scope of UAE VAT, unless the goods are supplied to be

consumed. For the purposes of this Public Clarification, a designated zone is not considered to be within the UAE unless stated otherwise.

 

In instances where goods are supplied within a designated zone for consumption (within or outside the designated zone) the place of supply of these goods shall generally be in the UAE, unless a specific exclusion applies. In lieu of such an exclusion, such supplies may potentially be subject to double taxation, i.e. on the transfer of ownership of the goods as well as on importation thereof.

 

The place of supply of services is generally regarded as being inside the UAE if supplied in the designated zone. In lieu of a special exclusion, the place of supply of shipping or delivery services in respect o...