Exceptions related to the Deemed Supply
There are some exceptions to deemed supply under uae vat law which we will discuss.
- According to the UAE VAT Law Article No. 05 and Cabinet Decision No. 052 of 2017 following must not be considered as deemed supply.
- When the company cannot recover the input tax on the supply of relevant goods and services
- When the supply is exempted from VAT Law
- When the refunded input vat is amended according to the capital assets scheme under the UAE vat law.
- When the supply of goods to each recipient is less than 500AED and it is given as samples or commercial gifts.
- When the total of output vat is less than 2000 AED for 12-month period for each person.
- 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.