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Ministerial Decision No. 26 of 2023 establishes the definitive criteria for classifying supplies as electronic commerce for VAT record-keeping purposes. Issued to implement Clause 5 of Article 72 of the VAT Executive Regulation, it mandates several conditions. A supply qualifies if the goods or services are advertised and ordered via an Electronic Commerce Medium. For goods, delivery must be to a location not owned by the supplier. For services, they must be rendered with minimal human intervention. This Decision ensures that taxable persons accurately identify and maintain records for e-commerce transactions under UAE VAT law.

This is not an Official Translation:

Criteria and Conditions for Electronic Commerce for Purposes of Keeping Records of the Supplies Made

Ministerial Decision No. 26 of 2023

Issued 22 Feb 2023 - (Effective from the Date of Publishing in the Official Gazette)

The Minister of State for Financial Affairs has decided:

Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of the Ministries and Powers of the Ministers, and its amendments,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,
Federal Law No. 7 of 2017 on Tax Procedures, and its amendments,
Cabinet Decision No. 52 of 2017 on the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments,

Article 1 - Definitions

In the application of the provisions of this Decision, the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:

State	:	United Arab Emirates.
Ministry	:	Ministry of Finance.
Minister	:	Minister of Finance.
Authority	:	Federal Tax Authority.
Tax	:	Value Added Tax.
Decree-Law	:	Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments.
Executive Regulation	:	Cabinet Decision No. 52 of 2017 on the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments.
Person	:	Natural or legal person.
Taxable Person	:	Any Person registered or obligated to register for Tax purposes under the Decree-Law.
Goods	:	Physical property that can be supplied, including but not limited to real estate, water, and all forms of energy as specified in the Executive Regulation.
Services	:	Anything that can be supplied other than Goods.
Supplier	:	A Person who supplies Goods or Services.
Electronic Commerce Medium	:	A website, portal, gateway, interface, platform, marketplace, programme interface (API), or similar application which facilitates the sale of Goods or Services, including electronic means, electronic platform, a store in social media and electronic applications or similar.

Article 2 - Scope of the Decision

This Decision sets out the criteria and conditions for electronic commerce according to the provisions of Clause 5 of Article 72 of the Executive Regulation.

The Minister of State for Financial Affairs has decided:

Article 1 - Definitions

Article 2 - Scope of the Decision

Article 3 - Criteria and Conditions for Electronic Commerce