Deemed supply as per article 11 of the decree law

  1. Supply of goods or services which formed whole or part assets without consideration will be considered as deemed supply.
  2. Permanent transfer of goods by a taxable person which consisted a part of his business assets from the state to another implementing state [GCC unions] or which are made as part of non- taxable supply of these goods.
  3. A supply of goods or services on which input tax may be recovered but the goods and services were used for the purpose other than business (in part or whole). Deemed supply only to the extent of the use for the non-business purpose.
  4. Goods and services owned at the date of deregistration.

Exceptions for deemed supply: Following shall not be considered as deemed supply:

  1. Where input tax is not recovered.
  2. Where supply is exempted.
  3. Where refunded input tax on goods and services is amended according to the capital assets scheme.
  4. Value of supply of goods for each recipient within 12 months does not exceed AED 500.


Supply to be used as samples or commercial gifts

5. Total of output tax payable on all deemed supply < AED 2000 For each person for a 12 months period.

12 months period is a period preceding the end of the month in which the person makes a supply.

[continuous requirement –shall have to be checked at the end of every month]

Date of deemed supply of goods or services: date shall be either of

  1. Date of supply
  2. Date of disposal
  3. Date of change of usage
  4. Date of deregistration


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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.

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