Exceptions related to the Deemed Supply

There are some exceptions to deemed supply under uae vat law which we will discuss.

  1. According to the UAE VAT Law Article No. 05 and Cabinet Decision No. 052 of 2017 following must not be considered as deemed supply.
    1. When the company cannot recover the input tax on the supply of relevant goods and services
    2. When the supply is exempted from VAT Law
    3. When the refunded input vat is amended according to the capital assets scheme under the UAE vat law.
    4. When the supply of goods to each recipient is less than 500AED and it is given as samples or commercial gifts.
    5. When the total of output vat is less than 2000 AED for 12-month period for each person.
    6. For the purposes of paragraph d and e of clause 1 of this article, the 12-month period is preceding the end of the month in which a person makes a supply to in either of those clauses.
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