Amendments to Emirates’ Reporting – Electronic Commerce Supplies by Qualifying Registrants
Issue
Registrants are required to report their standard rated supplies per Emirate in the relevant box 1 of their VAT returns. This requires them to keep records of their transactions to prove in which Emirate the supply was made1.
According to the general rule, supplies should be reported in the Emirate in which the taxable person’s establishment that is most closely related to the supply, is located.
Cabinet Decision No. 99 of 2022 on the Amendment of Some Provisions of Cabinet Decision No. 52 of 2017 on the Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax has amended Article 72 of the Executive Regulation, and requires certain taxable persons to report, and keep records of e commerce transactions according to the Emirate in which these supplies are received.
In accordance with the new amendment to Article 72 of the Executive Regulation, the Ministerial Decision No. 26 of 2023 on the Criteria and Conditions for Electronic Commerce for the Purposes of Keeping Records of the Supplies Made, was issued, which is discussed in further detail in this Public Clarification.
This Public Clarification provides guidance on how to determine which persons fall outside the general rule and for what supplies that are considered taxable supplies made through electronic commerce, and in which Emirate these supplies shall be reported in Box 1 of the VAT return.
Summary
Taxable persons supplying goods and services through electronic commerce which exceed AED 100 million over a calendar year are referred to as “Qualifying Registrants”.
From 1 July 2023, Qualifying Registrants are required to report supplies made through e commerce in box 1 of the VAT Return based on the Emirate in which the supplies of the goods or services are received by the customer, and keep the relevant supporting evidence.
VATP033 – Amendments to Emirates Reporting – 23 02 2023 Download the complete