Turn VAT Regulation into Business Requirement



Translate UAE VAT Regulations in to Oracle E-B TAX Requirement

This Article object is to set basis to understand & breaking regulations in parts to configure conditions in E-Business TAX to calculate correct tax on transactions and achieve accurate results for reporting purpose.
How should a business determine the place of supply?
Article (27) VAT Decree-Law 2017

1. The place of supply of Goods shall be in the State if the supply was made in the State, and does not include Export from or Import into the State.


Regulation
Regulations Text
Requirement
1
“The Place of supply of Goods”...
The tax rule is limited to Goods product type.
2
“…Shall be in the State”…
The place of supply is the “Ship to Party”
3
…if the supply was made in the State…
The jurisdiction of supply is UAE.
4
…and does not include Export from…..
This indicates, there will be special rules for the supply of export goods from UAE.
5
…or Import into the State…
This indicates, there will be special rules for the supply of Import goods in UAE.








The below table describes the content of the transaction tax factors & conditions

Regulation
Determine Factor class
Class qualifier
Determining factor name
Operator
Value
1
Product
N/A
Type
Equal To
Goods
2,3
Geography
Ship To & Bill To
Country
Equal To
United Arab Emirates
1
Product
N/A
Type
Not Equal To
Services
2,3
Geography
Bill From & Ship From
Country
Equal To
United Arab Emirates
4
Geography
Bill To
Country
Not Equal To
United Arab Emirates
5
Geography
Bill From
Country
Not Equal To
United Arab Emirates


These tax rules can be apply on appropriate Default Tax Rules of Tax Regime.





Suggestions & Questions are welcome.

















Location: United Arab Emirates

Comments

  1. endsendsends03December 18, 2020 at 9:53 PM

    Amazing description & thanks for sharing such wonderful information with us and also accountants in Austin

    ReplyDelete

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