Currently, VAT registered taxpayers in the UAE are required to report taxable supplies in the emirate where the fixed establishment is located for resident taxpayers, or in the emirate where the supply is received for non-resident taxpayers. The UAE is made up of seven emirates: Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. As of 1^st July 2023, the reporting rule will change for resident taxpayers that engage in e-commerce supplies. Change of reporting rule for resident taxpayers from 1^st July 2023:

• Resident taxpayers must report taxable supplies made through e-commerce in the emirate in which the supply is received, when the total value of supplies made through e-commerce exceeds 100 million UAE dirham ($27 million) per calendar year.

By adopting this new reporting requirement, the VAT revenue distribution between each emirate should be more equitable, and this requirement is in line with the global trend of taxing e-commerce supplies at the place of consumption.