The time of supply for goods supplied through vending machines is different than for normal supplies. A vending machine dispenses items like snacks and drinks when a customer inserts coins, without a salesperson. Suppliers stock these machines and collect the money periodically.
So when is the time of supply for VAT return uae purposes if you supply goods via vending machines? It is not when the goods are placed in the machine or when they are dispensed to the customer. Rather, it is the date when the supplier collects the funds from the machine.
For example, Ali Traders placed a vending machine selling snacks and drinks in a Dubai mall on March 25, 2018. Goods were dispensed on March 27-29 when customers inserted coins. On April 5, Ali Traders emptied the machine and collected the funds. So April 5 is the time of supply, even though the goods were dispensed on earlier dates.
This rule considers cash flow – suppliers would face early tax invoice payments if time of supply was when goods were dispensed. Suppliers must track fund collection dates to know which tax period to report and pay VAT. In Ali Traders’ case, they should report the VAT Registration for April 2018 since they collected funds in that month.
The vending machine time of supply rule rightly considers supplier cash flow. Suppliers should understand it to avoid incorrect tax invoice format payments or penalties. Tracking fund collection is key to reporting VAT Registration uae in the proper tax period.
You can also register for VAT Registration UAE on our website:
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