A Non-resident Person may not take the value of Goods and Services imported into the UAE to determine whether he is entitled to apply for Tax Registration if the calculation of Tax for such Goods or Services is not the responsibility of the Importer pursuant to Clause (1) of Article (48) of this Decree-Law.

Non-resident may be required to register for VAT

Following are some transactions which may require a non-resident to register for VAT if non-resident conducts economic activities on regular basis in UAE to persons (including businesses) who are non-registrants under UAE VAT:

1.      Goods sold under special arrangement (e.g. Consignment sales) through e-commerce directly to non-registrants in UAE.

2.      Supply of Real Estate or real estate related transactions (Brokerage on UAE properties, consultancy in relation to properties located in UAE).

3.      Installation of Goods in UAE by Non-resident where recipient is unregistered under UAE VAT. This tax incidence arises since the place of supply for installation or related services of goods located in UAE will be considered as within the state services for VAT purposes.

4.      Performance of any cultural, artistic, sporting, educational or any similar services within UAE, businesses should evaluate the tax implication while inviting, arranging artists to perform in the UAE.

5.      Provision of services to non-registrants.

For more information please contact us

Chartered House Tax Consultancy

Office # 1711 The Metropolis Tower

Business Bay, Dubai, U.A.E.

T: +971 4 2435666

E: [email protected]

W: www.charteredhouse.ae