GTL Summary:

Cabinet Decision No. 99 of 2022 introduces key amendments to the UAE VAT Executive Regulations, primarily focusing on the definition of a 'Supply of Services'. The Decision clarifies and expands the scope of what constitutes a supply of services, including the transfer of intangible rights and refraining from activities. Crucially, it amends Article 3 to specify that duties performed by a natural person appointed as a board member for a government or private sector entity are not considered a supply of services. This provides essential clarity for businesses on the VAT treatment of director fees.

Document Type: ERS - Executive Regulations
Law: VAT (FDL No 8 of 2017, as amended)
Decision Number: 52-article-3
Year: 2017
Country: 🇦🇪 UAE
Official Name: Article 3 - Supply of Services
Last updated at: 2025-12-26 14:13:51 UTC

Part 2 - Supply

Article 3 - Supply of Services [3]

  1. Each supply not considered a supply of goods shall be treated as a supply of services, including any of the following:

    1. Granting, assignment, suspension, or waiver of a right;

    2. Providing a facility or advantage;

    3. Refraining from engaging in, or not allowing the occurrence of, any activities, or agreeing to carry out any activity;

    4. Transferring an indivisible share in a commodity;

    5. Transferring or licensing of intangible rights, such as rights of authors, inventors and artists, trademarks' rights, and rights classified by the legislation of the State to be falling under such category.

  2. [Notwithstanding the provision of Clause (1) of this Article, the duties of a board member performed by a natural person who is appointed a board member in any of the government agencies or a private sector establishment shall not be considered a supply of services.] [G7]

Footnotes

[3]Article amended as per Cabinet Decision No. 99 of 2022.

GTL Notes

[G7]Inserted by Federal Decree-Law No. 99 of 2022 effective from 1 January 2023

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