Dubai August 08 2023:

The Federal Tax Authority (FTA) has stressed the need for taxpayers to abide by accurate, emirate-specific Value Added Tax (VAT) reporting requirements in relation to e-Commerce.

The Authority noted that recent updates to the VAT legislation in the UAE, specifically around the reporting of e-Commerce supplies result in additional obligations for a number of persons when preparing their VAT returns.

The FTA emphasized that businesses must carefully assess whether they fall under the new reporting obligations, noting that failure to comply or compliance with the updated reporting when not required may result in mistakes and expose companies to potential penalties.

Starting from 1 July 2023 and in the VAT return for the first tax period starting on or after that date, “qualifying registrants” are required to report supplies made through e-commerce in box 1 of their VAT Return, based on the Emirate in which the supply of goods or services is received by the customer. They are also required to retain the relevant supporting evidence. If a taxpayer is not a qualifying registrant or if a supply is not an e-commerce supply, then the taxable business must report its supplies in the Emirate where its fixed establishment related to the supplies made is located.

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