The tax point rules are outlined in accordance with Art. 23 of the Agreement, as set out in the main chapter, notes with additional clarification below in relation to goods supplied with, or without, transport and for imported and returnable goods per Art. 25 of the VAT Law, as follows:
Based on Art. 25(1) of the VAT Law, the tax point for goods transferred under the supervision of the supplier is determined as the earliest of:
- The date on which the goods were transferred, or The date of issuance of the tax invoice, or
- The date of receipt of payment
Based on Art. 25(2) of the VAT Law, the tax point for goods transferred not under the supervision of the supplier is determined as the earliest of:
- The date on which the recipient took possession of the goods, or The date of issuance of the tax invoice, or The date of receipt of payment.
Based on Art. 25(3) of the VAT Law, the tax point for goods that are supplied with assembly and installation is determined as the earliest of:
- The date on which the assembly or installation of the goods was completed, or
- The date of issuance of the tax invoice, or
- The date of receipt of payment
Based on Art. 25(4) of the VAT Law, the time of supply for imported goods shall be the earliest of:
- The date on which the goods are imported under the Customs Legislation, or The date of issuance of the tax invoice, or The date of receipt of payment
Based on Art. 25(5) of the VAT Law, if the supply of goods is on a Returnable Basis (“sale or return”) the tax point will be the earliest of:
- The date on which the recipient of the goods accepts the supply, or
- a date not later than 12 months after which the goods were transferred or placed at the customer’s disposal, or
- The date of issuance of the tax invoice, or
- The date of receipt of payment
There are no provisions in the UAE VAT Legislation for Cash Accounting, where the tax point is always the date of payment/receipt of payment.
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