VAT is being implemented either under “origin” or “destination” principle.

If in case, company based in Designated Zone supplies goods to mainland company directly from its vendor of mainland. The DFZ company does not take goods into DFZ for selling purpose again to mainland. There is no any custom involved in it but Tax Invoice is issued from DFZ company.

Is VAT 5% appliable based on the country of origin UAE? 


SAJITH NAIR18/10/2020 13:53:40

VAT @ 5% is applicable on the basis that the supply of goods takes place within UAE (mainland). Regardless for where the goods originated from, as on date of supply if the supply is being made inside UAE, VAT should apply.

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