English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.
A Deemed Supply is valued at purchase price or actual cost. Fair Market Value applies only where those amounts cannot be determined, with the Regulations detailing Goods, Services and deregistration.
Businesses making private use, free Supplies or retaining Goods on deregistration.
Once Article (10) establishes a Deemed Supply, its value must be determined separately; lack of customer Consideration does not make the value zero.
Current text
Value a Deemed Supply
- 1
First confirm a Deemed Supply exists under Article (10).
- 2
For Goods, begin with purchase price and then actual cost if unavailable.
- 3
For Services, determine total actual cost.
- 4
Use fair Market Value only where the earlier basis cannot be determined, including the deregistration rule.
Connected provisions
Law — Article (10)
Deemed Supply casesArticle (10) determines whether a Deemed Supply exists; Article (23) determines its value.
Open connected ArticleRegulations — Article (28)
Value of a Deemed SupplyIt details Goods, Services and Goods retained on deregistration.
Open connected ArticleOfficial guides and tools
A free Service after Input Tax deduction
Where the free Service is a Deemed Supply, the starting point is the actual cost incurred to provide it, not an unsupported notional price.
Questions to help you apply it
- Is there a Deemed Supply in the first place?
- Can purchase price or actual cost be determined?
- Does deregistration require Market Value for retained Goods?