Taxable Supplies

A supply has to be for "consideration" For a taxable supply to exist, the supply must be made in return for consideration. "Consideration" is a defined term in the VAT legislation and includes anything that is received or expected to be received for the supply of goods or services, whether in money or other forms of payment. 

A supply has to be by a person conducting business in the UAE The next requirement for a taxable supply is that the supply has to be made by the person who is conducting business in the UAE. 

 Multiple supplies versus a simple composite supply In some situations, a supplier may make a supply of a number of goods and services as part of the same transaction. Where there is such a supply of different goods and/or services, the supplier has to determine whether they are making a single composite supply of those goods and/or services, or multiple supplies of goods and/or services. 

Multiple supplies Where a person makes multiple supplies, the person must determine the correct VAT treatment of each of the supplies that it makes. This means that potentially different supplies made as part of the same transaction can be subject to different VAT treatments. In such circumstances, where a single consideration was paid for multiple supplies that are subject to different VAT rates, the supplier must determine the value of each supply and apply the correct VAT treatment to that value. 

A single composite supply A single composite supply is a single indivisible supply of a mixture of goods and/or services. By being treated as a single supply, all of the goods and/or services which form part of the supply will be subject to the same VAT treatment. A single composite supply may exist, for example, where there is a principal component and incidental components in a supply for which a single price is payable.