Definition

The Place of Supply is the location where goods or services are considered to be supplied for VAT purposes. In the UAE, determining the place of supply ensures the correct VAT treatment is applied, especially for cross-border transactions.

Key points

• For goods: usually where the goods are located at the time of supply.
• For services: generally where the supplier is established, with exceptions for electronically supplied services and cross-border transactions.
• Special rules exist for real estate (place of the property) and transport services.
• Key in determining if UAE VAT applies or if the transaction is zero-rated or out of scope.

Practical example

A Dubai company sells furniture to a client in Abu Dhabi: place of supply is UAE → VAT applies. The same company exports goods to Saudi Arabia: place of supply is outside UAE → 0% VAT.

Why it matters

Correctly identifying the place of supply prevents VAT misapplication, underpayment, or overpayment.