The default rule for the place of supply of services is that services are deemed to take place where the supplier has their place of residence.
Where the supplier has multiple potential places of residence (e.g. the business is incorporated in one country and has branches in other countries) the place of residence will be the place that is most closely connected with the supply being made. For example, where a UAE branch of a UK company provides services under the contract signed by the branch, the supply will be most closely connected with the UAE.
There are a number of exceptions to the default place of supply rule for services:
| Where | Then the supply takes place |
| …services are supplied by a supplier who is resident in one GCC Implementing State to a recipient who is resident in another GCC Implementing State and the recipient is registered for VAT in the second Implementing State… | …in the recipient’s Implementing State. |
| …services are supplied by a supplier who is resident outside the GCC Implementing States to a business recipient who is resident in the UAE… | …in the UAE. |
| …services are supplied that relate to goods, such as the installation of goods… | …where the services are performed. |
| …there is supply of a means of transport to a lessee who is not a taxable person in the UAE and is not registered for VAT in any GCC Implementing State… | …where the means of transport are placed at the disposal of the lessee. |
| …there is a supply of restaurant, hotel, and catering services… | …where the services are performed. |
| …there is a supply of any cultural, artistic, sporting, educational or similar services… | …where the services are performed. |
| …there is a supply of services related to real estate… | …where the real estate is located. |
| …there is a supply of transportation services… | …where the transportation starts. |
| …there is a supply of telecommunications services or electronic services… | …where the use and enjoyment takes place, to the extent of such use and enjoyment. |