How is the place of supply determined for goods and services?

For a supply of goods, the place of supply is the location of the goods when the supply occurs. So, if the goods are located in the UAE during the supply, then they’re treated as supplied in the UAE and they are taxable under UAE VAT. If the goods are located outside the UAE during the supply, they’re treated as an out-of-scope supply. Special rules apply when there is a cross-border supply, a supply of water and energy, or a supply of real estate.

For a supply of services, the place of supply is the location of the supplier. Special rules apply when there is a cross-border supply between businesses or a supply of electronic services.