Article 1
Definitions^[1]

State

:

United Arab Emirates.

Minister

:

Minister of Finance.

Authority

:

Federal Tax Authority.

Value Added Tax

:

A tax imposed on the Import and supply of Goods and Services at each stage of production and distribution, including the Deemed Supply.

Tax

:

Value Added Tax (VAT).

GCC States

:

All countries that enjoy full membership of the Cooperation Council for the Arab States of the Gulf pursuant to its Charter.

Implementing States

:

The GCC States that are implementing a Tax law pursuant to an issued legislation, and as specified in the Executive Regulation of this Decree-Law.

Goods

:

Physical property that can be supplied including real estate, water, and all forms of energy as specified in the Executive Regulation of this Decree-Law.

Services

:

Anything that can be supplied other than Goods.

Import

:

The arrival of Goods from abroad into the territory of the State or receipt of Services from outside the State.

Concerned Goods

:

Goods that have been imported, and would not be exempt if supplied in the State.

Concerned Services

:

Services that have been imported, where the place of supply is considered to be in the State, and would not be exempt if supplied in the State.

Person

:

A natural or legal person.

Taxable Person

:

Any Person registered or obligated to register for Tax purposes under this Decree-Law.

Taxpayer

:

Any Person obligated to pay Tax in the State under this Decree-Law, whether a Taxable Person or end consumer.

Tax Registration

:

A procedure whereby the Taxable Person or his Legal Representative registers with the Authority for Tax purposes.

Tax Registration Number (TRN)

:

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

Registrant

:

The Taxable Person who has been issued with a TRN.

Recipient of Goods

:

Person to whom Goods are supplied or imported.

Recipient of Services

:

Person to whom Services are supplied or imported.

Importer

:

With respect to importing Goods, it is the Person whose name appears for customs clearance purposes as the importer of the Goods on the date of Import. With respect to Services, it is the Recipient of these Services.

Taxable Trader

:

A Taxable Person in the Implementing States, whose main activity is the distribution of water and all types of energy as specified in the Executive Regulation of this Decree-Law.

Tax Return

:

Information and data specified for Tax purposes and submitted by a Taxable Person in accordance with a form prepared by the Authority.

Consideration

:

All that is received or expected to be received for the supply of Goods or Services, whether in money or other acceptable forms of payment.

Business

:

Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, vocational, service or excavation activities or anything related to the use of tangible or intangible properties.

Exempt Supply

:

A supply of Goods or Services for Consideration while conducting Business in the State, where no Tax is imposed and the Input Tax related thereto is not recovered, except according to the provisions of this Decree-Law.

Taxable Supply

:

A supply of Goods or Services for Consideration during the course of Business by any Person in the State, and does not include Exempt Supply.

Deemed Supply

:

All that is considered as a supply and treated as a Taxable Supply according to the instances stipulated in this Decree-Law.

Input Tax

:

Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import.

Output Tax

:

Tax charged on a Taxable Supply and any supply considered as a Taxable Supply.

Recoverable Tax

:

Amounts that have been paid and that the Authority may return to the Taxpayer pursuant to the provisions of this Decree-Law.

Due Tax

:

Tax that is calculated and imposed pursuant to this Decree-Law.

Payable Tax

:

Tax that is due for payment to the Authority.

Tax Period

:

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

Tax Invoice^[2]

:

A written or electronic document in which any Taxable Supply and its details are recorded, including an Electronic Invoice, as the case may be.

Tax Credit Note^[3]

:

A written or electronic document in which any amendment to reduce or cancel a Taxable Supply and its details are recorded, including an Electronic Credit Note, as the case may be.

Government Entities

:

Ministries, government departments and agencies, authorities and public institutions in the State, whether Federal or local, or any other entities treated with the treatment decided for Government Entities, in accordance with the decisions issued by the Cabinet for the purposes of implementing the provisions of this Decree-Law.

Charities

:

Societies and associations of public welfare not aiming to make a profit that are listed within a Cabinet Decision issued at the suggestion of the Minister.

[Relevant Charitable Activity

:

An activity for the purpose other than profit or benefit to any proprietor, member, or shareholder of the Charity, which is undertaken by the Charity in the course or furtherance of its charitable purposes or objectives to carry out a charitable activity in the State as approved by the competent authorities, or under the conditions of its establishment as a Charity under Federal or Emirate legislation, decree or decision, or as otherwise licensed to conduct a charitable activity by an entity that grants such licences on behalf of the Federal or Emirate Government.]^[G6]

Mandatory Registration Threshold

:

An amount specified in the Executive Regulation of this Decree-Law; if exceeded by the value of Taxable Supplies or is anticipated to be exceeded, the supplier shall apply for Tax Registration.

Voluntary Registration Threshold

:

An amount specified in the Executive Regulation of this Decree-Law; if exceeded by the value of Taxable Supplies or taxable expenses or is anticipated to be exceeded, the supplier may apply for Tax Registration.

Transport-related Services

:

Shipment, packaging and securing cargo, preparation of Customs documents, container management, loading, unloading, storing and moving of Goods, or any other closely related Services or that are necessary to conduct the transportation Services.

Place of Establishment

:

The place where a Business is legally established in a country pursuant to the decision of establishment, in which significant management decisions are taken or central management functions are conducted.

Fixed Establishment

:

Any fixed place of Business, other than the Place of Establishment, in which the Person conducts his Business regularly or permanently and where sufficient human and technology resources exist to enable the Person to supply or acquire Goods or Services, including the Person's branches.

Place of Residence

:

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

Non-Resident^[4]

:

Any Person who does not have a Place of Establishment or Fixed Establishment in the State and usually does not reside in the State.

Related Parties

:

Two or more Persons, not separated on the economic, financial or regulatory level, where one can control the others either by Law, or through the acquisition of shares or voting rights.

Customs Legislation

:

Federal and local legislation that regulate customs in the State.

Designated Zone

:

Any area specified by a Cabinet Decision issued at the suggestion of the Minister, as a Designated Zone for the purpose of this Decree-Law.

Export

:

Goods departing the State, or the provision of Services to a Person whose Place of Establishment or Fixed Establishment is outside the State.

Voucher

:

Any instrument that gives the right to receive Goods or Services against the value stated thereon or the right to receive a discount on the price of the Goods or Services. Vouchers do not include postage stamps issued by the Emirates Post Group.

Activities conducted with Sovereign Capacity

:

Activities conducted by Government Entities in their sole competent capacity, with or without Consideration.

Capital Assets

:

Business assets designated for long-term use.

Capital Assets Scheme

:

A scheme whereby the initially recovered Input Tax is adjusted based on the actual use during a specific period.

Administrative Penalties

:

Amounts imposed upon a Person by the Authority for violating the provisions of this Decree-Law and the Tax Procedures Law.

Administrative Penalties Assessment

:

A decision issued by the Authority in relation to the Administrative Penalties due.

Excise Tax

:

A tax imposed by law on specific Goods.

Tax Group

:

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

[Pure Hydrocarbons

:

Any of the various pure compounds of the chemical formula consisting solely of hydrogen and carbon (CxHY).]^[G8]

[Tax Evasion

:

The Person's use of illegal means, resulting in the reduction of the amount of the Due Tax, non-payment thereof, or a refund of Tax that the Person did not have the right to have refunded.]^[G9]

[Tax Audit

:

A procedure undertaken by the Authority to inspect the commercial records or any information, data or Goods related to a Person to verify the fulfilment of its obligations in accordance with the provisions of this Decree-Law or the Tax Procedures Law.]^[G10]

[Tax Assessment

:

Shall mean the Tax Assessment as defined in the Tax Procedures Law.]^[G11]

[Voluntary Disclosure

:

A form prepared by the Authority pursuant to which the Taxpayer notifies the Authority of any error or omission in the Tax Return, Tax Assessment or Tax refund application in accordance with the provisions of the Tax Procedures Law.]^[G12]

[Tax Procedures Law

:

Federal Law No. 7 of 2017 on Tax Procedures and its amendments, and any other Federal law replacing it.]^[G13]

Electronic Invoicing System^[5]

:

An electronic system designated for the issuance, transmission, exchange and sharing of invoice and credit note data, in accordance with legislation governing tax procedures.

Electronic Invoice^[6]

:

An invoice issued, transmitted, and received in a structured electronic format that enables automatic and electronic processing, in accordance with the Electronic Invoicing System.

Electronic Credit Note^[7]

:

A credit note issued, transmitted, and received in a structured electronic format, that enables automatic and electronic processing, in accordance with the Electronic Invoicing System.