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Online shopping subject to VAT: Federal TAX Authority

Authority explained this in an awareness flyer issued on Friday

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Online shopping portals are subject to VAT as any other purchase if the products are received within the UAE
Gulf News

ABU DHABI: The Federal Tax Authority (FTA) has confirmed that all purchases made through online shopping portals are subject to the same 5 per cent Value Added Tax (VAT) as any other purchase made through traditional outlets if the products purchased online are received within the UAE.

The Authority explained in an awareness flyer issued on Friday that according to Federal Decree-Law No. (8) of 2017 on Value Added Tax and its Executive Regulations, all online sales are subject to VAT where a seller’s supplies exceed the mandatory registration threshold of Dh375,000 over the previous 12 months or the coming 30 days.

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