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Understanding Supply of Goods and Services


In the era of commerce, the exchange of goods and services forms the cornerstone of economic activity. Understanding the challenges of supply, particularly within the context of regulations and frameworks, is essential for businesses and individuals alike. The difference between goods and services, the intricacies of supply in special cases, and the role of government entities in this landscape are crucial aspects that necessitate clarity and comprehension.

Supply of Goods

The transfer of ownership or the right to use goods represents a fundamental aspect of supply. As per Article 5 of the Decree-Law, this encompasses scenarios where ownership is transferred or contractual agreements are made for future transfers, subject to the stipulations outlined in the Executive Regulation. This delineation serves as a guideline for identifying transactions involving tangible assets.

Supply of Services

In contrast, the supply of services encompasses a broader spectrum of transactions that do not fall under the purview of goods. Article 6 elucidates that any provision of services not categorized as a supply of goods is considered a supply of services. The comprehensive nature of this definition underscores the diversity of service-based transactions, highlighting their significance in commercial activities.

Supply in Special Cases

Exceptions to the standard classifications are delineated in Article 7, emphasizing scenarios where certain transactions deviate from conventional definitions of supply. The sale or issuance of vouchers and the transfer of businesses under specific conditions are excluded from the purview of supply, as outlined in the Executive Regulation. These exceptions underscore the nuanced nature of supply dynamics, acknowledging unique circumstances that warrant distinct treatment.

Supply of more than one component

Article 8 underscores the need for clarity regarding transactions involving multiple components for a unified price. Whether comprising goods, services, or a combination of both, the Executive Regulation is tasked with specifying the conditions governing such arrangements. This provision aims to ensure transparency and consistency in assessing transactions with multifaceted components.

Supply via Agent

The role of agents in facilitating supply transactions is delineated in Article 9, distinguishing between scenarios where agents act on behalf of principals and those where agents act independently. These provisions elucidate the legal implications of agency relationships, clarifying the attribution of supply and the associated benefits.

Supply by Government Entities

Article 10 addresses the unique dynamics of supply involving government entities, particularly concerning their engagement in commercial activities. Clarity is provided regarding instances where government entities operate in a non-sovereign capacity and engage in competition with the private sector. The issuance of Cabinet Decisions further refines the parameters governing government entity activities, ensuring a clear delineation between sovereign and non-sovereign functions.


The Federal Decree-Law No. (8) of 2017 provides a comprehensive framework for understanding the dynamics of supply concerning goods and services. By delineating classifications, exceptions, and regulatory parameters, it establishes a foundation for transparent and coherent commercial transactions. Clarity regarding supply dynamics is paramount for businesses, individuals, and regulatory authorities alike, facilitating informed decision-making and fostering a conducive environment for economic activity.


The Content offers general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk.

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This article was published on 14 February 2024.

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