You cannot say there is no supply. This can happen in two ways 1) where the manufacturer gives this as a volume discount against previous purchases or 2) as a bonus for marketing/related services performed by the recipient. you need to identify the nature and the manner in which bonus has been granted

1. If overseas manufacturer provides cash discount (incentive/Bonus) for volume purchases. what is UAE VAT Treatment. 2. if overseas manufacturer provides Bonus for volume -sales based target as agreed. what is UAE VAT treatment. In both cases, there are conditions based consideration from overseas manufactures. Such consideration under UAE VAT is taxable & need to apply VAT @5% or 0%.

1. This would merely be a discount on purchase value. There would not be a requirement to do a VAT treatment on this since goods imported are already declared and RCM recognised ; 2. This could again take the nature of a discount. However if contractually it takes the nature of marketing or promotion it would tantamount to consideration against promotion services from your end. Further it would be hard to argue that services are directly related to goods located in UAE as per Art 31.1(a.2) so you should be able to zero rate it. You need to evaluate the contractual terms and define the actual nature of such bonus. This is just my view

Thanks Sajith.