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.
This is a broad residual rule: a Supply that is not a Supply of Goods is treated as a Supply of Services, subject to the examples and detail in the Regulations.
Service providers and businesses dealing in rights, licences, facilities and non-tangible obligations.
The absence of tangible Goods does not put a transaction outside VAT. A right, licence, undertaking or agreement to refrain from an act may be a Service.
Current text
Is this a Supply of Services?
- 1
First test whether the transaction is a Supply of Goods under Article (5).
- 2
If not, identify the right, benefit or obligation received by the customer.
- 3
Review the non-exhaustive examples in Article (5) of the Regulations.
- 4
Then determine the time, place, value and VAT treatment.
Connected provisions
Official guides and tools
Licence to use a trade mark
Granting a customer a right to use a trade mark does not transfer tangible Goods, but it falls within the types of Services listed in the Regulations. Place, time and VAT treatment must then be determined.
Questions to help you apply it
- Did Goods pass, or did the customer receive a right or benefit?
- Does the transaction involve a licence, undertaking or agreement not to act?
- Which place and time rules apply after classification?