BWMC Logo
VAT Knowledge BaseSupply under VAT

Supply under VAT

BWMC Tax Team
Updated Jan 2026
5 min read
  • Place of Supply: Determines whether the supply is made in or outside UAE.
  • Value of Supply: Determines the taxable amount.
  • Date of Supply: Determines the VAT period for reporting.

    • Types of Supply

    Supplies are categorized to determine the correct tax treatment:

    1. Standard Rated (5%)

    Applies to the majority of goods and services in the UAE (e.g., retail, commercial rent, consulting).

    2. Zero-Rated (0%)

    Taxed at 0%, but allows for input tax recovery.

    • Exports outside GCC
    • International Transport
    • Healthcare & Education

    3. VAT Exempt

    No VAT charged, and no input tax recovery.

    • Residential Real Estate
    • Local Transport
    • Financial Services

    4. Out-of-Scope

    Transactions not subject to UAE VAT law (e.g., merchant trading where goods don't enter UAE).

    Back to Guides