For goods, the basic rule is that if the goods are located in the UAE when supplied, then they are treated as supplied in the UAE. Similarly, if the goods are located outside the UAE when they are supplied, the place of supply is outside the UAE.
The rules are, however, modified when the supply of goods involves transportation, or installation or assembly of the goods. The table below provides an overview of the special place of supply rules for goods.
| Where | Then the supply takes place |
| …the supply is of installed or assembled goods… | …in the place where the assembly or installation of goods takes place. |
| …the supply involves export of goods from the UAE to a place outside the GCC Implementing States… | …in the UAE. |
| …the supply involves export of goods from one GCC Implementing State to another GCC Implementing State to a recipient resident in that second Implementing State and the following conditions are met:
· the recipient is not registered for VAT or liable to be registered for VAT in their State; and · the total value of exports by the supplier to the recipient’s Implementing State does not exceed the mandatory registration threshold in the State of the recipient… |
…in the supplier’s Implementing State. |
| Where | Then the supply takes place |
| …the supply involves export of goods from one GCC Implementing State to another GCC Implementing State to a recipient resident in that second Implementing State and the following conditions are met:
· the recipient is not registered for VAT or liable to be registered for VAT in their state; and · the total value of exports by the supplier to the recipient’s Implementing State exceeds the mandatory registration threshold in the State of the recipient… |
…in the recipient’s Implementing State. |
| …the supply involves export of goods from one GCC Implementing State to another GCC Implementing State to a recipient who is registered for VAT in the second Implementing State… | …in the recipient’s Implementing State. |
| …the supply is of water or energy through a distribution system by a taxable person who is resident in the UAE to a taxable person resident in another GCC Implementing States whose main activity is the distribution of water or energy… | …in the place where the recipient has their place of residence. |
| …the supply is of water or energy through a distribution system by a taxable person to a person who is not a taxable person… | …in the place of actual consumption. |
It should be noted that there is no special place of supply rule for goods imported into the UAE from outside the GCC Implementing States. Such imports will be subject to UAE VAT on importation.