UAE VAT BITES: Deemed Supply I Cases of Deemed Supply I Exceptions to Deemed Supply I Tax on Gifts

Welcome to UAE VAT BITES, where we break down complex VAT concepts into easy-to-understand insights. In this video, we explore Deemed Supply under UAE VAT regulations, discussing key cases, exceptions, and how VAT is applied to gifts and other scenarios. Whether you’re a business owner, tax consultant, or just looking to understand VAT better, this video will provide the clarity you need.

💡 In this video, you will learn:

What constitutes a Deemed Supply under UAE VAT
Common cases of Deemed Supply and how they apply to businesses
Exceptions to Deemed Supply and scenarios where VAT is not applicable
How VAT is calculated on gifts and other non-monetary transactions


Article 2 – Scope of Tax
Tax shall be imposed on:
Every Taxable Supply and Deemed Supply made by the Taxable Person.
Import of Concerned Goods except as specified in the Executive Regulation of this Decree-Law.

Article 11 – Cases of Deemed Supply
The following cases shall be a Deemed Supply:
A supply of Goods or Services, which constituted the whole assets of a Taxable Person’s Business or a part thereof, but are no longer considered to be as such, provided that the supply was made without Consideration.
The transfer of Goods which constituted part of the Taxable Person’s Business assets in the State to his Business in an Implementing State, or from the Taxable Person’s Business in an Implementing State to his Business in the State, except in the case where the transfer of Goods:
Is considered as temporary under the Customs Legislation.
Is made as part of another Taxable Supply of these Goods.
A supply of Goods or Services for which Input Tax may be recovered but the Goods or Services were wholly or partially used for purposes other than Business. Such supply shall be considered as deemed only to the extent of the use for purposes other than Business.
Goods and Services that a Taxable Person owns at the date of Tax deregistration.