Beta Version

Website Last updated:

May 15, 2026

This FTA guide clarifies the VAT treatment for e-commerce transactions in the UAE, providing essential compliance information for businesses operating online. It outlines the application of Federal Decree-Law No. 8 of 2017 and its Executive Regulation to supplies of goods and services via electronic platforms. Key topics covered include determining the place of supply for goods and electronic services, VAT registration requirements for resident and non-resident suppliers, and the correct application of the reverse charge mechanism. The guide also details VAT rules for imports, exports, and transactions facilitated through disclosed and undisclosed agents.

E-Commerce

VAT Guide | VATGEC1

August 2020

1. Introduction

1.1. Overview
1. 1.1.1. Short brief
  1.1.2. Purpose of this document
  1.1.3. Who should read this document?
  1.1.4. Status of the document

2. Overview: e-Commerce and VAT

2.1. What is e-commerce?
2.2. Legislative background
2.3. What is VAT?
2.4. VAT registration requirements
1. 2.4.1. Mandatory registration
  2.4.2. Voluntary registration
2.5. Place of supply
2.6. Reverse charge mechanism
2.7. Input tax recovery

3. E-commerce: Supplies of Goods

3.1. Introduction
3.2. Place of supply of goods
3.3. Sales of goods from the UAE
1. 3.3.1. Imposition of VAT
  3.3.2. Accounting for VAT
3.4. Sales of goods from outside the UAE
3.5. VAT on import of goods into the UAE
1. 3.5.1. Imposition and accounting for import VAT
  3.5.2. Import with assistance of an import clearing agent
  3.5.3. Exceptions from import VAT
3.6. Summary: VAT treatment of supplies of goods

4. E-commerce: Supplies of Services

4.1. Introduction
4.2. Place of supply of electronic services
4.3. Imposition of VAT
4.4. Accounting for VAT
4.5. Summary: VAT treatment of electronic services

5. Supplies made through agents

5.1. Introduction
5.2. Types of agency arrangements
5.3. VAT treatment of supplies made through agents
1. 5.3.1. Disclosed agency
  5.3.2. Undisclosed agency
5.4. Tax invoice requirements

Introduction

Overview

Short brief

VAT was introduced with effect from 1 January 2018 in the UAE. As a general consumption tax on the supply of goods and services, it applies to supplies which take place within the territorial area of the UAE.

Purpose of this document

This document contains guidance about the VAT treatment of supplies of goods and services through electronic means, such as over the internet or a similar electronic network.

The purpose of this document is to provide guidance on how VAT affects businesses which operate within the e-commerce sector.

Who should read this document?

This document should be read by businesses involved in the e-commerce sector.

It is intended to be read in conjunction with other relevant guidance published by the Federal Tax Authority (“FTA”).

Contents

Introduction

Overview

Short brief

Purpose of this document

Who should read this document?

Status of the document