Let's delve into what lies behind the concept of "electronic services" in the UAE, as this determines the VAT status of such electronic service providers. Because the rate (without VAT, 0%, or 5%) depends on the PLACE OF CONSUMPTION of electronic services, not on the supplier's place of registration, the place of contract conclusion, or payment. "Electronic services" are services provided via the Internet, electronic network, or electronic marketplace, and include:
🔺 Provision of domain names, web hosting, and remote servicing of software and equipment.
🔺 Supply and updating of software.
🔺 Provision of images, text, and information in electronic form, such as photos, screensavers, e-books, and other digital files.
🔺 Supply of music, movies, and games on demand.
🔺 Supply of online magazines.
🔺 Supply of advertising space on a website and any rights related to such advertising.
🔺 Provision of political, cultural, artistic, sports, scientific, and entertainment broadcasts, including event broadcasts.
🔺 Live streaming via the Internet.
🔺 Provision of distance learning and
🔺 Services of an equivalent type that have a similar purpose and function.
It is of utmost importance to correctly categorize your services as either electronic or IT. A service will not be considered an electronic service if it is one of the above-mentioned services, even if the service is provided via the Internet or electronic network. Electronic services must be provided automatically via the Internet, electronic network, or electronic marketplace with minimal human intervention, or without it. Therefore, it is crucial to determine whether you provide electronic services or just IT services.
🔺 Provision of domain names, web hosting, and remote servicing of software and equipment.
🔺 Supply and updating of software.
🔺 Provision of images, text, and information in electronic form, such as photos, screensavers, e-books, and other digital files.
🔺 Supply of music, movies, and games on demand.
🔺 Supply of online magazines.
🔺 Supply of advertising space on a website and any rights related to such advertising.
🔺 Provision of political, cultural, artistic, sports, scientific, and entertainment broadcasts, including event broadcasts.
🔺 Live streaming via the Internet.
🔺 Provision of distance learning and
🔺 Services of an equivalent type that have a similar purpose and function.
It is of utmost importance to correctly categorize your services as either electronic or IT. A service will not be considered an electronic service if it is one of the above-mentioned services, even if the service is provided via the Internet or electronic network. Electronic services must be provided automatically via the Internet, electronic network, or electronic marketplace with minimal human intervention, or without it. Therefore, it is crucial to determine whether you provide electronic services or just IT services.