The Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax

Article 2 – Supply of Goods

• A transfer of ownership of Goods or of the right to use them from one Person to another Person shall include for instance the following:
  • A transfer of ownership of Goods under a written or verbal agreement for any sale

• • A transfer of ownership for a Consideration in a compulsory manner pursuant to the applicable legislations.
• For the purposes of Clause 1 of this Article, a transfer of the right to use any assets shall not be treated as a supply of Goods unless the other Person is able to dispose of them as owner.
• Entry into a contract between two parties causing the transfer of Goods at a later time shall be considered a supply of Goods where the agreement mentions a transfer or intention to transfer the ownership of Goods or a future transfer of ownership of Goods.
• The following shall be considered a supply of Goods:
  • A supply of water
  • A supply of real estate including sale and tenancy contracts.
  • A supply of all forms of energy, which includes electricity and gas, including biogas, coal gas, liquefied petroleum gas, natural gas, oil gas, producer gas, refinery gas, reformed natural gas, and tempered liquefied petroleum gas, and any mixture of gasses, whether used for lighting, or heating, or cooling, or air conditioning or any other purpose.

Article 3  – Supply of Services

• A supply of Services shall be every supply that is not considered a supply of Goods, including any of the following:
  • The granting, assignment, cessation, or surrender of a right.
  • The making available of a facility or advantage.
  • Not to participate in any activity, or not to allow its occurrence, or agree to perform any activity.
  • The transfer of an indivisible share in a Good.
  • The transfer or licensing of intangible rights, for example rights of authors, inventors, artists, rights in trademarks, and rights which the legislation of the State deems to be within such category.
• As an exception to Clause 1 of this Article, the functions of a member of a board of directors, performed by a natural person appointed as such, for any government entity or private sector establishment, shall not be considered a supply of Services.

The Executive Regulation of Federal Decree-Law No. 8 of 2017 regarding Value Added Tax (VAT) encompasses rules related to the supply of Goods and Services.

 Article 2 addresses the supply of Goods, defining it as the transfer of ownership or usage rights from one Person to another. This includes ownership transfers through agreements, compulsory considerations, and contractual transfers at a later time. Notably, the transfer of usage rights isn’t deemed a supply of Goods unless the recipient can act as an owner.

Article 3 pertains to the supply of Services. It encompasses a range of actions that don’t qualify as Goods supply, such as granting rights, offering facilities, abstaining from activities, and transferring intangible rights. Notably, the functions of a board member in government or private sectors do not fall under the category of Services.

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