Criteria and Conditions for Electronic Commerce Businesses to Keep Records of the Supplies Made

Businesses that engage in online transactions must have a thorough understanding of the criteria and conditions that govern electronic commerce supply. These factors are essential in determining whether goods or services can be classified as electronic commerce. To meet this classification, the supply must be advertised and ordered through an electronic commerce medium.

In the case of goods, they must be delivered to a location specified by the customer, independent of the supplier's ownership or operation. Similarly, services should be provided with minimal or no human intervention. By adhering to these criteria and conditions, businesses can operate transparently in the UAE's electronic commerce market and ensure their compliance with the relevant laws and regulations.

Implications for Record-Keeping

Ministerial Decision No. 26 of 2023 holds significant importance in defining the criteria and conditions that govern electronic commerce in the UAE. This decision has notable implications for businesses involved in electronic commerce, particularly regarding their obligations in record-keeping. To ensure compliance with UAE corporate tax laws, it is mandatory for these businesses to maintain precise and up-to-date records of their electronic commerce supplies. The decision specifies that these records should include crucial details such as the supply date, transaction value, supplier and customer names and addresses, and information about the payment method used. By diligently adhering to these record-keeping requirements, businesses can effectively demonstrate their compliance with UAE tax laws and foster transparency in their electronic commerce transactions. 

Importance of Compliance With Keeping Records for Supplies made 

The implementation of the Decision on Criteria and Conditions for Electronic Commerce signifies the introduction of guidelines for electronic commerce and taxation in the UAE. Therefore, it is imperative for businesses to maintain transparency and fulfill their regulatory obligations related to electronic commerce operations in the country. Thus, it is crucial for businesses involved in electronic commerce to diligently follow these regulations to ensure fair and transparent transactions while maintaining compliance with corporate tax laws. 

Choose Corporate Tax UAE for Premier Tax Advisory Services

Essentially, businesses are required to meet the criterion and conditions for electronic commerce for purposes of keeping records of the supplies made. Noncompliance with maintaining accurate records accrues hefty penalties upon the corporation. Thus, taxable persons are advised to consult Tax Consultants in UAE to determine and meet corporate tax conditions and standards.

Read More: Guide to Corporate Tax Registration & UAE Corporate Tax Filing