Supply by Government Entities

Supply by Government Entities under VAT Law

Article 10 of Federal Decree-Law (8) of 2017 lay down the conditions where Government Entities are subject to VAT Law. Therefore this section is important for Government Entities becuase not all the Government Entities are subject to VAT Law.

Article 10 of Federal Decree-Law (8) of 2017 States that:

  1. A Government Entity is regarded as making a supply in the course of business in the following cases:

(a) If its activities are conducted in a non-sovereign capacity.

(b) If its activities are in competition with Private sector.

2. A Cabinet Decision shall be issued at the suggestion of the Minister determining the Government Entities and their activities that are considered as conducted in a Sovereign Capacity and instances where its activities are considered not in competition with private sector.

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