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.
Deemed Supply does not arise where related Input Tax was not deducted or where the Goods or Services Supply is exempt.
Businesses privately using or giving away activity assets, Goods or Services.
Deemed Supply can balance earlier Input deduction; it is not automatic where no deduction benefit existed or the Supply is exempt. Prove original treatment and actual deduction.
Current text
Before recording Deemed Supply
- 1
Identify item and new use.
- 2
Retrieve invoice and Input entry.
- 3
Check actual deduction.
- 4
Test exemption.
- 5
If exception fails, return to Law conditions.
- 6
Document Return outcome.
Connected provisions
Official guides and tools
Connected Madar tools
No Input deduction then private use
Where an asset's Input VAT was never deducted and it is later privately used, apply this exception before calculating Deemed Supply. Earlier deduction requires returning to the Law conditions and value rules.
Questions to help you apply it
- Input deducted?
- Supply exempt?
- Entry evidence?
- Did Deemed Supply arise?