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Amendments to Emirates' Reporting for Electronic Commerce Supplies

The UAE Ministry of Finance has issued amendments to the reporting requirements for electronic commerce supplies. These amendments provide criteria and conditions for qualifying registrants to report their supplies made through electronic commerce. This article discusses the key provisions of the amendments and their implications for taxable persons engaged in electronic commerce. 

Cabinet Decision No. 99 of 2022 on the Amendment of Some Provisions of Cabinet Decision No. 52 of 2017 on the Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax has amended Article 72 of the Executive Regulation, and requires certain taxable persons to report, and keep records of ecommerce transactions according to the Emirate in which these supplies are received.

The amendments state that for supplies to be considered as made through an electronic commerce medium, several criteria and conditions must be met:

  • Listing or Advertising: The goods and services must be listed or advertised on the electronic commerce medium, providing sufficient information to enable informed purchases. General categories without individual listings or advertisements do not fulfill this condition.
  • Ordering: The goods and services must be ordered through the electronic commerce medium, regardless of the payment method. The order must be fully executed within the medium, excluding any additional offline contract or terms and conditions.
  • Delivery Location: In the case of goods, the delivery must be to a location specified by the customer, which should not be owned or operated by the supplier. The specified delivery location determines the Emirate for reporting purposes.

These amendments emphasize the importance of accurate reporting for electronic commerce supplies. Qualifying registrants, whose electronic commerce supplies exceed AED 100 million annually, must report their supplies in the relevant box of the VAT return based on the Emirate of delivery.

It is crucial for taxable persons engaged in electronic commerce to carefully evaluate their operations and ensure compliance with the criteria and conditions outlined in the amendments. By accurately reporting their supplies, businesses can fulfill their VAT obligations and maintain compliance with the UAE tax regulations.

The amendments to Emirates’ reporting requirements for electronic commerce supplies introduce specific criteria and conditions that must be met for supplies to be considered as made through electronic commerce. These changes aim to ensure accurate reporting and enhance transparency in electronic commerce transactions. It is essential for qualifying registrants to understand and adhere to these criteria to comply with the updated VAT regulations in the UAE.

This article was published on  02 August 2023

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