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What is the Bill-to-Ship-to Supplies Model
As per the Bill-to-Ship-to Supplies model, the procedure of billing and shipping items are carried out to a couple of locations and bodies. Bill-to-Ship-to Supplies are one of the standard practices that the majority of the businesses adopt during distance sales.
Simplifying the two parts to Bill-to-Ship-to Supplies transaction
- The initial part of the transaction procedure takes place between the Company A, and Company B, which receives an order for a bulk amount from the Company A. The Company B hills the transaction to the Company A and ships the materials to a different company (Company C). Company C is one of the clients of Company B.
- The next part of the transaction takes place between Company A and Company C. Here the Company A plays the role of a supplier, whereas, Company C plays the role of a buyer. Company A bills the transaction to Company C and provides essential documents.
Place of Supply (UAE) in brief
Under the value-added tax (VAT), the place of supply is considered to be an essential concept. Supply of goods is regarded to have taken place in the place of supply. Whether or not the TAX applies to the supply can only be determined by the place of supply. However, the rules that are taken into consideration for determining the place of supply can vary for the supply of services and materials.
In case of the supply of services, the place where a supplier exists should be the place of supply. However, there are specified rules applicable to cross-boundary supplies and electronic services between companies.
In the case of the supply of goods, the prime location of the goods should be the place of supply when the supply of goods takes place. Besides, the supply of real estate materials and supply of water & energy, specified rules are also applicable to cross-boundary supplies.
Top Categories of the Place of Supply of Goods
Domestic
The place of supply is regarded to be domestic when the materials are delivered within the state. Hence, the place of supply is the UAE when things are supplied from one region to another within the UAE.
Export
When the goods are delivered to a different country on a different continent from the UAE, the place of supply is considered to be the UAE.
Import
Goods imported into the UAE – When it comes to imported goods, the place of supply for such goods has to be the country where the goods will be consumed or used. One needs to pay value-added tax (VAT) when importing goods from a foreign land. Goods that are re-exported after imported into the UAE – If a company imports goods from a foreign land in order to re-export it to another state within UAE, then, the place of supply is the UAE.
GCC Filings boasts of a reliable team of business analysts that can guide you on the right path and aid you in making smarter decisions for propelling your business forward. Being a highly reputed VAT filings consulting in UAE, professionals at GCC Filings can seamlessly take care of the VAT registration and filing processes. Get VAT registration done and return filings taken care of seamlessly without any hassles.
By now, it is expected that the factors mentioned above are intelligible to you. So whenever goods are imported from a place outside of the UAE, the place of supply is the UAE. During such occasion, UAE VAT is applicable both on the supply of goods and services.