Non-resident sellers in Amazon

Hi, what are your thoughts on VAT registration requirement for a non-resident making sales via Amazon in UAE? The goods would be stored here in Amazon warehouses for sale at later time. Please let me know your views

Replies
Simran Singh02/01/2020 16:05:53

Amazon would pay VAT under reverse charge because they would import the goods and store in their warehouse. Later these goods would be sold to local UAE customers and VAT would be charged on such local sales. Amazon would be eligible to recover the VAT paid on imports

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Ujjwal Pawra03/01/2020 14:06:13

A person is required to obtain VAT registration in UAE if –1. It has a ‘place of residence’ in UAE and total value of supplies exceeds mandatory threshold limit. 2. It does not have a ‘place of residence’ and makes supplies of goods or services and where no other person is obligated to pay the due tax on these supplies in UAE. Online websites merely provides a platform for the sellers worldwide and acts as an intermediary. Place of residence has been litigative around the world. As such Amazon warehouses in UAE where the goods of non-resident sellers are stored may not qualify as ‘fixed place of business’ in UAE. Accordingly, such sellers may be obligated to obtain VAT registration as per Point 2 above. However, where VAT registered importers are responsible to discharge tax on reverse charge basis on import of goods, the sellers may not be required to register for VAT in UAE.

2 Like  
Ujjwal Pawra03/01/2020 14:16:34

From a practical standpoint it may be better to take registration for recovering VAT charged by importer and subsequently VAT being recovered from customer.

2 Like  
SAJITH N08/01/2020 13:01:35

Thank you all for the views

0 Like  
Win attempts26/07/2021 16:32:48

HI Sajith, What you have concluded in above matter, Whether the person selling goods to UAE non VAT registered people is required to take registration ? that to when threshold is not reached

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