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Place of Supply


Place of Supply

What is the place of supply?
The place of supply is where a transaction is considered to have occurred for VAT purposes. Place of supply is determined differently for goods and for services.

For the supply of goods, the place of supply is the location of the goods when the supply occurs. Special rules apply when there is a cross-border supply, supply of water and energy, or supply of real estate.

For the supply of services, the place of supply should be where the supplier is established. Special rules apply to cross-border supplies between businesses and to electronic services.

In this document, we will discuss the cases that determine the place of supply:

Place of supply of goods

Below threshold Exceeding threshold
The total amount of exports by the supplier is below the mandatory registration threshold in the destination member state. The total amount of exports by the supplier is above the mandatory registration threshold in the destination member state.
Place of supply is UAE, and UAE VAT should be paid. Place of supply is the destination member state, and VAT should be paid in that state.

Import

Place of supply of services

Basic rule
The place of supply for services provided by a taxable supplier is where the supplier has their place of residence.
This basic rule always applies unless overridden by a special rule.

Exceptions to basic rule

Reverse charge
The reverse-charge mechanism applies whenever a VAT-registered person imports any good or service into the UAE that is subject to VAT in the UAE. Read more about the reverse charge mechanism.



       
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