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projects of a similar nature from a Government Entity to
another Government Entity, including any granted or
transferred right of use, exploitation or utilization as of 1
January 2023.

2. For the purposes of Clause 1 of this Article, Government
buildings, real estate assets and other projects of similar
nature shall mean the following: a. Government Entities’
premises.
b. Government capital projects.
c. Government infrastructural projects.
d. Real estate assets utilised and used by Government
Entities.
e. Real estate assets allocated and utilised to serve a public
utility and for public use.
f. Developed Government land.

Article 5 – Exceptions For the purposes of Clause 4 of Article 12 of the Decree-Law, If the value of the output
related to deemed the value of the supply of Goods for each recipient, within tax of the Goods (Goods
supply a 12-month period, shall not exceed AED 500 (five hundred were supplied as samples or
dirhams). The condition of “supply made is to be used as commercial gifts)
samples or commercial gifts” has been removed now. for each Recipient of Goods
within a 12-month period,
For the purposes of Clause 5 of Article 12 of the Decree-Law, does not exceed the amount
the total of Output Tax payable on all Deemed Supplies shall AED 2,000, then it is excluded
not exceed the following: from VAT

a. An amount of AED 2,000 (two thousand dirhams) for Deemed supplies between
each supplier, within a 12-month period, and any amount government/charitable
exceeding this threshold shall be considered Payable Tax. entities under AED 250,000
over 12 months are excluded
b. An amount of AED 250,000 (two hundred fifty thousand from VAT.
dirhams) for each supplier that is a Government Entity
or a Charity in case the recipient is a Government Entity Effective from November 15,
or a Charity, within a 12-month period, and any amount 2024
exceeding this threshold shall be considered Payable Tax.

Article 8 – Voluntary Person may not register for Tax voluntarily unless he proves Voluntary registration
registration to the Authority that: requires proof of conducting
a. he is carrying on a Business in the State, and business and intent to make
b. he has the intention to make any of the supplies specified specific supplies under
in paragraphs (a), (b) or (c) of Clause 1 of Article 54 of the Article 54(1)
VAT Federal Decree-Law No. 8 of 2017 and its amendments,
as follows: Effective from November 15,
2024
• Taxable supplies
• Supplies made outside the UAE which would have been
taxable supplies had they been made in the UAE.
• Supplies made outside the UAE, which would have been
treated as exempt had they been made inside the UAE.

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