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 issued legislation.

Goods

:

Tangible properties which can be supplied, including the real property, water, and all types of energy determined by this Resolution.

Services

:

Anything other than the goods, which can be supplied.

Standard Rate

:

The tax rate set out in Article 3 of the Decree-Law.

Importation

:

Bringing goods or services into the State from abroad.

Relevant Goods

:

The goods imported and not exempted from the tax if supplied in the State.

Relevant Services

:

The 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 tax purposes under the Decree-Law.

Taxpayer

:

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

Legal Representative

:

The guardian, custodian or caretaker of a minor or legally incompetent person, or a bankruptcy trustee appointed by the court for the company under bankruptcy proceedings or any other person legally appointed to represent another.

Tax Registration

:

A procedure under which a 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.

Tax Return

:

The information and data specified for the tax purposes and 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 it is cash payment or in any other form recognized as compensation.

Business

:

Any activity that is practiced on an ongoing, regular and independent basis by any person and in any place, such as the 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 the 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 the Decree-Law.

Input Tax

:

The tax paid by, or due from, a person when goods or services are supplied to or imported by such person.

Output Tax

:

The tax levied on the taxable supply and on any supply which is deemed taxable supply.

Refundable Tax

:

The amounts paid that may be refunded by the Authority to the taxpayer under the provisions of the Decree-Law.

Due Tax

:

The tax that is calculated and levied under the provisions of the 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.

Tax Credit Note

:

A written or electronic document in which any amendment to reduce or cancel a taxable supply and its details are recorded.

Government Agencies

:

Ministries, government departments and entities and federal and local public authorities and institutions in the State.

Charities

:

National nonprofit societies and institutions of public welfare, which are determined by a Cabinet resolution to be issued upon the proposal of the Minister.

Mandatory Registration Threshold

:

An amount specified in this Resolution and if the value of taxable supplies exceeds or is expected to exceed such amount, the supplier shall apply for tax registration.

Voluntary Registration Threshold

:

An amount specified in this Resolution and if the value of taxable supplies or taxable expenses exceeds or is expected to exceed such amount, the supplier may apply for tax registration.

Transport-Related Services

:

Transport, packaging and securing of cargo; 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 country, in accordance with its establishment decision and where important management decisions are taken or the functions of the business' 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 and includes 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 the Decree-Law.

Non-Resident Person

:

Any person that has no business establishment 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 can control the others either by law or by acquisition of shares or voting rights.

Designated Area

:

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

Exportation

:

The departure of the goods from the State or providing the services to a person whose business establishment or fixed establishment is outside the State, including direct and indirect exportation.

Direct Exportation

:

An exportation of goods to a destination outside the applying states, in which the supplier is responsible for arranging transport or appointing an agent to act on his behalf in this regard.

Indirect Exportation

:

An exportation of goods to a destination outside the applying states, where the overseas customer is responsible for arranging the receipt of goods from the supplier in the State and exporting the goods, or appointing an agent to act on his behalf in this regard.

Overseas Customer

:

A recipient of goods who does not have a business establishment or fixed establishment in the State, does not reside in the State, and does not have a tax registration number in the State.

Voucher

:

Any instrument entitling the holder to receive goods or services against the value stated thereon or to obtain a discount on the price of the goods or services and it does not include postage stamps issued by the Emirates Post Group.

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 the Decree-Law and Federal Law No. (7) of 2017 on Tax Procedures.

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 the Decree-Law.

Notification

:

Notifying the person of the decisions issued by the Authority through the means provided for in the [Tax Procedures Law] ^[G2]and its Executive Regulations.

Tax Evasion

:

The use of illegal means by a person, which causes 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 in accordance with the provisions of the Decree-Law.

The Decree-Law

:

Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT), [as amended.] ^[G3]

Working Day

:

Any weekday, excluding weekends and official holidays determined by the Federal Government.

Virtual Assets

:

A digital representation of value that can be traded or transferred electronically and may be used for investment purposes, excluding digital representations of paper money or securities. ^[G4]