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Glossary

Federal Decree-Law No. (8) of 2017 on Value Added Tax

State  United Arab Emirates
Minister  Minister of Finance
Authority  Federal Tax Authority
Value Added Tax A tax imposed on the import and supply of Goods and Services at each stage of production and distribution, including the Deemed Supply.
Tax  Value Added Tax (VAT).
GCC States  all countries that are full members of The Cooperation Council for the Arab States of the Gulf pursuant to its Charter.
Implementing States  The GCC States that are implementing a Tax law pursuant to an issued legislation.
Goods  Physical property that can be supplied including real estate, water, and all forms of energy as specified in the Executive Regulation of this Decree-Law.
Services  Anything that can be supplied other than Goods.
Import  The arrival of Goods from abroad into the State or receipt of Services from outside the State.
Concerned Goods  Goods that have been imported, and would not be exempt if supplied in the State.
Concerned Services  Services that have been imported, where the place of supply is in the State, and would not be exempt if supplied in the State.
Person  A natural or legal person.
Taxable Person  Any Person registered or obligated to register for Tax purposes under this Decree-Law.
Taxpayer  Any person obligated to pay Tax in the State under this Decree-Law, whether a Taxable Person or end consumer.
Tax Registration  A procedure according to which the Taxable Person or his Legal Representative registers for Tax purposes at the Authority.
Tax Registration Number (TRN)  A unique number issued by the Authority for each Person registered for Tax purposes.
Registrant  The Taxable Person who has been issued with a TRN.
Recipient of Goods  Person to whom Goods are supplied or imported.
Recipient of Services  Person to whom Services are supplied or imported.
Importer  With respect to importing Goods, it is the Person whose name is listed as the importer of the Goods on the date of Import for customs clearance purposes. With respect to Services, it is the Recipient of these Services.
Taxable Trader  A Taxable Person in the Implementing States, whose main activity is the distribution of water and all types of energy as specified in the Executive Regulation of this Decree-Law.
Tax Return  Information and data specified for Tax purposes and submitted by a Taxable Person in accordance with a form prepared by the Authority.
Consideration  All that is received or expected to be received for the supply of Goods or Services, whether in money or other acceptable forms of payment.
Business  Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, service or excaVATion activities or anything related to the use of tangible or intangible properties.
Exempt Supply  A supply of Goods or Services for Consideration while conducting Business in the State, where no Tax is due and no Input Tax may be recovered, except according to the provisions of this Decree-Law.
Taxable Supply  A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supply.
Deemed Supply  Anything considered as a supply and treated as a Taxable Supply according to the instances stipulated in this Decree-Law.
InputTax  Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import.
Output Tax  Tax charged on a Taxable Supply and any supply considered as a Taxable Supply.
Recoverable Tax  Amounts that were paid and may be returned by the Authority to the Taxpayer pursuant to the provisions of this Decree-Law.
Due Tax  Tax that is calculated and charged pursuant to this Decree-Law.
Payable Tax  Tax that is due for payment to the Authority.
Tax Period  A specific period of time for which the Payable Tax shall be calculated and paid.
Tax Invoice  A written or electronic document in which the occurence of a Taxable Supply is recorded with details pertaining to it.
Tax Credit Note  A written or electronic document in which the occurence of any amendment to a Taxable Supply that reduces or cancels the same is recorded and the details pertaining to it.
Government Entities  Federal and local ministries, government departments, government agencies, authorities and public institutions in the State.
Charities  Societies and associations of public welfare not aiming to make a profit that are listed within a Cabinet Decision issued at the suggestion of the Minister.
Mandatory Registration Threshold  An amount specified in the Executive Regulation of this Decree-Law; if exceeded by the value of Taxable Supplies or is anticipated to be exceeded, the supplier shall apply for Tax Registration.
Voluntary Registration Threshold  An amount specified in the Executive Regulation of this Decree-Law; if exceeded by the value of Taxable Supplies or taxable expenses or is anticipated to be exceeded, the supplier may apply for Tax Registration.
Transport-related Services  Shipment, packaging and securing cargo, preparation of Customs documents, container management, loading, unloading, storing and moving of Goods, or any another closely related services or services that are necessary to conduct the transportation services.
Place of Establishment  The place where a Business is legally established in a country pursuant to the decision of its establishment, in which significant management decisions are taken or central management functions are conducted.
Fixed Establishment  Any fixed place of business, other than the Place of Establishment, in which the Person conducts his business regularly or permanently and where sufficient human and technology resources exist to enable the Person to supply or acquire Goods or Services, including the Person’s branches.
Place of Residence  The place where a Person has a Place of Establishment or Fixed Establishment, in accordance with the provisions of this Decree-Law.
Non-Resident Any person who does not own a Place of Establishment or Fixed Establishment in the State and usually does not reside in the State.
Related Parties  Two or more Persons who not separated on the economic, financial or regulatory level, where one can control the others either by Law, or through the acquisition of shares or voting rights.
Customs Legislation  Federal and local legislation that regulate customs in the State.
Designated Zone  Any area specified by a Cabinet Decision issued at the suggestion of the Minister, as a Designated Zone for the purpose of this Decree-Law.
Export  Goods departing the State or the provision of Services to a Person whose Place of Establishment or Fixed Establishment is outside the State.
Voucher  Any instrument that gives the right to receive Goods or Services against the value stated thereon or the right to receive a discount on the price of the Goods or Services. Vouchers do not include postage stamps issued by the Emirates Post Group.
Activities conducted with Sovereign Capacity  Activities conducted by Government Entities in their sole competent capacity, with or without Consideration.
Capital Assets  Business assets designated for long-term use.
Capital Assets Scheme  A scheme whereby the initially recovered Input Tax is adjusted based on the actual use during a specific period.
Administrative Penalties  Amounts imposed upon a Person by the Authority for breaching the provisions of this Decree-Law or Federal Law No. (7) of 2017 on Tax Procedures.
Administrative Penalties Assessment  A decision issued by the Authority concerning any Administrative Penalties due.
Excise Tax  A tax imposed on specific Goods.
Tax Group  Two or more Persons registered with the Authority for Tax purposes as a single taxable person in accordance with the provisions of this Decree-Law.

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Page last updated: : Jan 17, 2022
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