English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

An undisclosed Agent acting in own name is treated as receiving or making the Supply. A disclosed Agent acting in the principal's name leaves the Supply between principal and third party, supported by a formal power of attorney expressly authorising the Agent and transaction documents.

Who should read this?

Agents, platforms, intermediaries, principals and invoice teams.

Why does it matter?

Disclosed status changes the Supply chain, invoice issuer and reporting. Contract labels fail where invoices and communications present the Agent as principal.

Own name: Supply to and by AgentPrincipal's name: principal to third partyFormal power of attorney and document evidence

Current text

A. If a Taxable Person Supplies or receives Goods or Services in his own name on his client’s behalf (the undisclosed agent), he shall be treated as having made or received such Supply himself. B. If a Taxable Person Supplies Goods or Services in the name and on behalf of his client (the disclosed agent), the Supply shall be considered, for Tax purposes, as occurring between the client and the third party. C. A disclosed agent shall evidence his status in accordance with the following: 1. A power of attorney from the client in which he expressly authorises the Agent to act in his name and on his behalf. 2. A contract, invoice, or any other document that clearly shows the Supply was made in the name and on behalf of the client, provided that such document contains the subject of the transaction, the name and address of the client and agent as well as details of the third party.

Prove Agent status

  1. 1

    Whose name appears to third party?

  2. 2

    Formal power of attorney expressly authorising action for the principal?

  3. 3

    Documents show subject, parties and addresses?

  4. 4

    Who invoices and books revenue?

  5. 5

    Separate Agent commission.

Connected provisions

Direct legislative link

Law — Article (8)

Agency Supplies

This Article explains disclosed and undisclosed chain effects.

Open connected Article
Thematic link

Regulations — Article (52)

Invoice data

Invoice must reflect Supplier and parties consistently.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (7)

Connected Madar tools

Connected Madar tools

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Platform sells in own or shop name

A platform invoicing in its own name without disclosing the shop is inside the chain. With clear authority and an invoice in the shop's name, the main Supply is shop to customer and platform commission is separate.

Questions to help you apply it

  • Whose name?
  • Express authority?
  • Invoice says what?
  • Who reports Supply?
  • Commission treatment?