GTL Summary:

Article 10 establishes the criteria for when a supply made by a Government Entity is considered a business activity for tax purposes. A supply is deemed to be in the course of business under two conditions: firstly, if the entity's activities are conducted in a non-sovereign capacity, and secondly, if these activities are in competition with the private sector. The article further mandates that a Cabinet Decision, issued based on the Minister's suggestion, will specify which Government Entities and activities are classified as sovereign and which are not considered to be in competition with private enterprises.

Document Type: Tax Law Article
Law: VAT (FDL No 8 of 2017, as amended)
Article Number: 10
Country: 🇦🇪 UAE
Location: Title 3 - Supply &rsaquo; Chapter 1 - Supply of Goods and Services
Order: 10
Last updated at: 2025-12-26 14:13:51 UTC

Title 3 - Supply

Chapter 1 - Supply of Goods and Services

Article 10
Supply by Government Entities

A Government Entity is regarded as making a supply in the course of Business in the following cases:
1. If its activities are conducted in a non-sovereign capacity.
2. If its activities are in competition with the private sector.
A Cabinet Decision shall be issued at the suggestion of the Minister determining the Government Entities and their activities that are considered as conducted in a sovereign capacity and instances where its activities are considered not in competition with the private sector.

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