The United Arab Emirates Ministry of Finance has issued a new Ministerial Decision that outlines the criteria and conditions for e-commerce record-keeping of the supplies made. This new development is a significant step towards ensuring that the e-commerce sector in the UAE operates efficiently and transparently.
New Requirements for E-commerce Record-Keeping
The decision introduces new requirements for certain taxable individuals, whose value of e-commerce supplies of goods and services exceeds AED 100 million, to maintain records of e-commerce transactions according to the Emirate in which these supplies are received.
Criteria for Electronic Commerce Supply
The decision defines an e-commerce supply made through an electronic commerce medium as one that meets specific criteria and conditions. These criteria include:
- Goods and services being listed or advertised on an electronic commerce medium
- Being ordered through the electronic commerce medium (regardless of whether the payment is made online or not),
- Goods being delivered to a location specified by the customer, which is not owned or operated by the supplier.
- In the case of a supply of services, the services must be provided, or the right to receive the services must be granted to the customer with minimal or no human intervention.
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Implications of the New Ministerial Decision
This new Ministerial Decision on electronic commerce record-keeping is an essential development for e-commerce businesses in the UAE. By outlining clear criteria and conditions for record-keeping, it provides guidance for businesses operating in the e-commerce sector and helps ensure compliance with UAE regulations.
The decision also establishes a new threshold for taxable individuals, requiring those whose value of e-commerce supplies of goods and services exceed AED 100 million to maintain specific records of e-commerce transactions. While this new requirement may represent additional administrative requirements for some businesses, it is an important step towards ensuring that the e-commerce sector is operating efficiently and transparently.
The decision reflects the UAE government’s commitment to supporting the growth of e-commerce in the country and protecting consumers by regulating this sector. It provides a framework for businesses to operate within and establishes a level of consistency and transparency that is beneficial for both businesses and consumers.
Conclusion
Overall, the new Ministerial Decision on electronic commerce record-keeping is a positive development for the UAE e-commerce sector. By providing guidance and establishing clear criteria and conditions for record-keeping, the decision helps ensure compliance with regulations and supports the growth of the e-commerce sector in the country.
