GTL Summary:

Article 36 establishes an exception to the valuation rules in Articles 34, 35, and 37 for transactions involving related parties. It stipulates that the value of a supply or import of goods or services between such parties shall be considered its market value if two specific conditions are met concurrently. The first condition is that the declared value of the supply is less than its market value. The second is that the recipient of the goods or services is not entitled to recover the full input tax that would have been charged. This provision ensures anti-avoidance by revaluing undervalued related-party transactions.

Document Type: Tax Law Article
Law: VAT (FDL No 8 of 2017, as amended)
Article Number: 36
Country: 🇦🇪 UAE
Location: Title 5 - Rules Pertaining to Supplies &rsaquo; Chapter 4 - Value of Supply
Order: 36
Last updated at: 2025-12-26 14:13:51 UTC

Title 5 - Rules Pertaining to Supplies

Chapter 4 - Value of Supply

Article 36
Value of Supply and Deemed Supply for Related Parties^[17]

As an exception to Articles 34, 35, and [37]^[G27] of this Decree-Law, the value of the supply or Import of Goods or Services between Related Parties shall be considered equal to the market value if all of the following conditions are met:

The value of the supply is less than the market value.
If the supply is a Taxable Supply and the Recipient of Goods or Recipient of Services does not have the right to recover the full Tax that would have been charged on such supply as Input Tax.

Fast-loading version for search engines - Click here for the interactive version