Article 5 - Exceptions related to Deemed Supply

Exceptions related to Deemed Supply

1. The supply shall not be regarded as a Deemed Supply in any of the following instances:
a. Where the Input Tax on the relevant Goods or Services is not recovered.
b. Where the supply is exempted.
c. Where the refunded Input Tax on Goods and Services is amended according to the Capital Assets Scheme.
d. Where the value of the supply of Goods for each recipient, within a 12-month period, does not exceed AED 500, and the supply made is to be used as samples or commercial gifts.
e. Where the total of Output Tax payable on all Deemed Supplies for each Person for a 12-month period is less than AED 2,000. 

2. For the purposes of Paragraphs (d) and (e) of Clause (1) of this Article, the 12-month period is a period preceding the end of the month in which the Person makes a supply referred to in either of those Clauses.