GTL Summary:

Article 27, as amended by Federal Decree-Law No. 18 of 2022, defines the rules for determining the place of supply for goods. A supply made within the State, not involving import or export, is located in the State. For installed or assembled goods, the location is where the installation or assembly occurs. For supplies involving export, the place is determined by the recipient's tax registration status in the destination Implementing State and whether the supplier's total exports exceed the mandatory registration threshold there. The article also clarifies that goods temporarily exiting and re-entering the State for a domestic supply are not treated as exports.

Document Type: Tax Law Article
Law: VAT (FDL No 8 of 2017, as amended)
Article Number: 27
Country: 🇦🇪 UAE
Location: Title 5 - Rules Pertaining to Supplies › Chapter 2 - Place of Supply
Order: 27
Last updated at: 2025-12-26 14:13:51 UTC

Title 5 - Rules Pertaining to Supplies

Chapter 2 - Place of Supply

Article 27
Place of Supply of Goods[14]

  1. The place of supply of Goods shall be in the State if the supply was made in the State and does not include Export from or Import into the State.

  2. The place of supply of installed or assembled Goods if exported from or imported into the State shall be:

    1. In the State, if assembly or installation of the Goods was done in the State.

    2. Outside the State, if assembly or installation of the Goods was done outside the State.

  3. The place of supply of Goods that includes Export or Import shall be as follows:

    1. Inside the State in the following instances:

      1. If the supply includes exporting to a place outside the Implementing States.

      2. If the Recipient of Goods in an Implementing State is not registered for Tax in the state of destination, and the total exports from the same supplier to this state do not exceed the Mandatory Registration Threshold for such state.

      3. If the Recipient of Goods in the State does not have a Tax Registration Number, and the total exports from the same supplier in an Implementing State to the State exceeds the Mandatory Registration Threshold.

      4. [If Clause 1 of Article 26 of this Decree-Law applies, and the ownership of Goods is transferred in the State.] [G25]

    2. Outside the State in the following instances:

      1. If the supply includes an Export to a customer registered for Tax purposes in one of the Implementing States.

      2. If the Recipient of Goods is not registered for Tax in the Implementing State to which Export is made, and the total exports from the same supplier to this Implementing State exceeds the Mandatory Registration Threshold for such state.

      3. If the Recipient of Goods does not have a Tax Registration Number and the Goods are imported from a supplier registered for Tax in an Implementing State from which Import is made, and the total value of imported Goods from the same supplier to the State do not exceed the Mandatory Registration Threshold.

  4. Goods shall not be treated as exported outside the State and then reimported if such Goods are supplied in the State and this supply required that the Goods exit and then re-enter the State according to the instances specified in the Executive Regulation of this Decree-Law.

Footnotes

[14]Article amended as per Federal Decree-Law No. 18 of 2022.

GTL Notes

[G25] Inserted by Federal Decree-Law No. 18 of 2022 effective from 1 January 2023

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Article 26 - Date of Supply in Special Cases
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