It is common for businesses to conduct their operations through agents. For VAT purposes in the UAE, agents are categorized into two types, i.e., disclosed agents and undisclosed agents.
The term disclosed agency refers to the kind of agency whereby the agent or principal discloses the agency relationship with the third party to whom the goods or services are sold. In contrast, an undisclosed agency refers to an agency in which a third-party buyer is not aware of the existence of an agency relationship between the principal and the agent. The VAT treatment of supplies made through agents in the UAE differs based on the type of agency involved.
Source C A Harikrishnan Nampoothiry P S
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