State

:

The United Arab Emirates.

Minister

:

The Minister of Finance.

Authority

:

The Federal Tax Authority.

Value-Added Tax (VAT)

:

A tax levied on the importation and supply of goods and services at every stage of production and distribution, including the deemed supply.

Tax

:

The Value-Added Tax.

GCC States

:

All the states which are full members of the Cooperation Council for the Arab States of the Gulf, in accordance with the GCC Charter.

Applying States

:

The GCC States which apply the Tax law under a legislative instrument issued thereby, and as defined by the Executive Regulations of this Decree-Law.

Goods

:

Tangible properties which can be supplied, including real property, water and all types of energy, as defined by the Executive Regulations of this Decree-Law.

Services

:

Anything, other than Goods, which can be supplied.

Importation

:

Bringing^[G1] Goods into the State from abroad, or receiving Services from abroad.

Relevant Goods

:

Goods imported and not exempted from the Tax if supplied in the State.

Relevant Services

:

Services imported, whose place of supply is in the State, and not exempted from the Tax if supplied in the State.

Person

:

A natural or legal person.

Taxable Person

:

Each Person that is, or ought to be, registered for the tax purposes under this Decree-Law.

Taxpayer

:

Any Person that is obligated to pay the Tax in the State, pursuant to this Decree-Law, whether such Person is a taxable Person or an end consumer.

Tax Registration

:

A procedure under which the Taxable Person or the legal representative thereof registers for the Tax purposes at the Authority.

Tax Registration Number (TRN)

:

A unique number assigned by the Authority to each Person registered for the Tax purposes.

Registrant

:

A Taxable Person holding a Tax Registration Number.

Recipient of Goods

:

The Person to whom the Goods are supplied or imported.

Recipient of Services

:

The person to whom the Services are supplied or imported.

Importer

:

In relation to the importation of Goods, an importer is the Person who acts as the importer of Goods on the date of Importation for the purposes of customs clearance. In relation to the importation of Services, it means the recipient of such services.

Taxable Trader

:

A Taxable Person in the Applying States, whose main activity is the distribution of water and all types of energy, as defined by the Executive Regulations of this Decree-Law.

Tax Return

:

The information and data specified for the Tax purposes provided by the Taxable Person in accordance with the form prepared by the Authority.

Consideration

:

Anything that has been received or expected to be received for the supply of Goods or Services, whether cash payments or any other forms recognized as compensation.

Business

:

Any activity that is practiced on a regular, ongoing and independent basis by any Person and in any place, such as industrial, commercial, agricultural, professional, handicraft or service activity, excavation activities or any activity related to the use of tangible or intangible properties.

Exempted Supply

:

The supply of Goods or Services for a Consideration during the practice of the Business within the State, which shall not be taxed and the input tax levied on may not be refunded except under the provisions of this Decree-Law.

Taxable Supply

:

The supply of Goods or Services for a Consideration during the practice of the Business by any Person within the State, not including the Exempted Supply.

Deemed Supply

:

All that is regarded as a supply and treated as a Taxable Supply, in accordance with the cases set forth in this Decree-Law.

Input Tax

:

The Tax paid or payable by a Person when Goods or Services are supplied to, or importation is made, by such Person.

Output Tax

:

The Tax levied on the Taxable Supply and on any supply which is deemed Taxable Supply.

Refundable Tax

:

Amounts paid that may be refunded by the Authority to the Taxpayer under the provisions of this Decree-Law.

Due Tax

:

The Tax that is calculated and levied under the provisions of this Decree-Law.

Payable Tax

:

The Tax which becomes due to be paid to the Authority.

Tax Period

:

A specific period for which the Payable Tax shall be calculated and paid.

Tax Invoice

:

A written or electronic document in which any taxable supply and its details are recorded, including the electronic invoice, as the case may be. ^[G2]

Tax Credit Note

:

A written or electronic document in which any amendment to reduce or cancel a taxable supply and its details are recorded, including the electronic tax credit note, as the case may be. ^[G3]

Government Agencies

:

Ministries, government departments and entities and federal and local public authorities and institutions in the State, or any other entities receiving the treatment prescribed for Government Agencies, in accordance with the resolutions issued by the Cabinet for the purposes of applying the provisions of this Decree-Law.

Charities

:

Non-governmental, non-profit organizations of public welfare, which are determined by a Cabinet resolution to be issued upon the proposal of the Minister.

[Relevant Charitable Activity

:

A non-profit activity generating no benefits for any owner, member or shareholder of a Charity, and is performed by the Charity within its purposes or objects to carry out a charitable activity in the State or to promote such Charity, as approved by the relevant authorities, or pursuant to its articles of incorporation as a Charity under legislation, decree or federal or local resolution, or based on its license, to carry out a charitable activity through an authority granting such licenses on behalf of the federal government or the Emirate's government.] ^[G4]

Mandatory Registration Threshold

:

An amount specified in the Executive Regulations of this Decree-Law and if the value of Taxable Supplies exceeds or is expected to exceed such amount, the supplier shall apply for the Tax Registration.

Voluntary Registration Threshold

:

An amount specified in the Executive Regulations of this Decree-Law and if the value of Taxable Supplies or taxable expenses exceeds or is expected to exceed such amount, the supplier may apply for the Tax Registration.

Transport-Related Services

:

Cargo transport, packaging and sealing; preparation of customs documents; container management services and loading, unloading, storage and movement of goods, or any other services that are closely related or necessary for the completion of transport services.

Business Establishment

:

The place where the Business is legally established in a state, in accordance with the establishment resolution, and where important management decisions are taken or the functions of the central administration are carried out.

Fixed Establishment

:

Any fixed place of Business other than the Business Establishment, through which the Person conducts its Business on a regular or permanent basis and which has the sufficient human and technical resources necessary to enable it to supply or receive Goods or Services, including the Person's branches.

Place of Residence

:

The place where a Person has a Business Establishment or Fixed Establishment, in accordance with the provisions of this Decree-Law.

Non-Resident Person

:

Any person that has no business headquarters or fixed establishment in the State and usually does not reside therein.

Related Parties

:

Two or more Persons that are not economically, financially or organizationally separated, where one of them can control the others either by law, shareholding or voting rights.

Customs Legislation

:

Federal and local legislation regulating customs in the State.

Designated Area

:

Any area identified by a Cabinet Resolution, upon the proposal of the Minister, as a Designated Area for the purposes of this Decree-Law.

Exportation

:

Taking Goods outside the State or providing Services to a person whose Business Establishment or Fixed Establishment is outside the State.

Voucher

:

Any instrument entitling the holder thereof to get access to Goods or Services against the value stated thereon or enclosed therein, or to obtain a discount on the price of Goods or Services, and it does not include postage stamps issued by the Emirates Post Group.

Activities Performed in a Sovereign Capacity

:

Activities performed by Government Agencies in their sole capacity, with or without a Consideration.

Capital Assets

:

Business assets designated for long-term use.

Capital Assets Scheme

:

A scheme whereby the input tax initially refunded is adjusted based on the actual use during a specific period.

Administrative Fines

:

Amounts to be imposed on the Person by the Authority for violating the provisions of this Decree-Law and Federal Law No. (7) of 2017 ^[G5], on Tax Procedures.

Administrative Fine Assessment

:

A decision issued by the Authority on due administrative fines.

Excise Tax

:

A tax levied by virtue of a law on particular Goods.

Tax Group

:

Two or more Persons registered at the Authority as a single Taxable Person for the tax purposes, in accordance with the provisions of this Decree-Law.

[Pure Hydrocarbons

:

Any type of various pure compounds of a chemical formula composed only of hydrogen and carbon (Cx Hy).] ^[G6]

[Tax Evasion

:

The person's use of illegal means which cause reducing the amount of the Due Tax, the non-payment thereof, or the refund of a Tax that such Person is not entitled to refund.] ^[G7]

[Tax Audit

:

An action made by the Authority to audit business records or any information, data or commodities related to a Person so as to verify the fulfillment of their obligations, pursuant to the provisions of this Decree-Law or the Tax Procedures Law.] ^[G8]

[Tax Assessment

:

Means the Tax Assessment as defined in the Tax Procedures Law.] ^[G9]

[Voluntary Disclosure

:

A form prepared by the Authority whereby the Taxpayer notifies the Authority of any errors or omissions in the Tax Return, Tax Assessment or tax refund application, pursuant to the provisions of the Tax Procedures Law.] ^[G10]

[Tax Procedures Law

:

Federal Law No. (7) of 2017, on Tax Procedures, as amended, and any federal law superseding the same.] ^[G11]

[E-invoicing System

:

An electronic system specifically used for issuing, sending, exchange and sharing of the details of invoice and credit note according to the legislation regulating the tax procedures.] ^[G12]

[Electronic Invoice

:

An invoice that is issued, sent and received in a structured electronic format that enables automated and electronic processing, according to the e-invoicing system.] ^[G13]

[Electronic Credit Note

:

A credit note that is issued, sent and received in a structured electronic format that enables automated and electronic processing, according to the e-invoicing system.] ^[G14]