What is a supply?
The term ‘supply’ refers to goods or services that are exchanged for consideration. A supply occurs when there is a transaction between two persons and at least one of them is a registered taxpayer. Buying, selling, and stock transfers are all supplies, even if there is no exchange of money.
We cover the following topics regarding Supply Under VAT
What are the components of supply under VAT?
A supply under VAT has three major components that are used to calculate the tax owed for the transaction: place, value, and time.
- Place of supply - it determines whether the supply is made in or outside UAE for VAT purposes.
- Value of supply - it determines the taxable value of the supply and the amount of tax that has to be paid for it.
- Time of supply - it determines what VAT period the transaction falls under.