For telecommunications and electronic Services, the place of supply shall be in the State, to the extent of the use and enjoyment of the supply in the State and outside the State, to the extent of the use and enjoyment of the supply outside the State.

1. Taxation of Telecommunication and
Electronic Services
Telecommunication services means delivering, broadcasting, converting or
receiving any of the services specified below by using any communications
equipment or devices that transmit, broadcast, convert, or receive such service by
electrical, magnetic, electromagnetic, electrochemical or electromechanical means
or other means of communication, including wired and wireless communications;
voice, music and other audio material; viewable images; signals used for
transmission with the exception of public broadcasts; signals used to operate and
control any machinery or equipment and services of an equivalent type which have
a similar purpose and function.
Electronic services means Services which are automatically delivered over the
internet, or an electronic network, or an electronic marketplace, including supply
of domain names, web-hosting and remote maintenance of programs and
equipment; the supply and updating of software; the supply of images, text, and
information provided electronically such as photos, screensavers, electronic books
and other digitized documents and files; the supply of music, films and games on
demand; the supply of online magazines; the supply of advertising space on a
website and any rights associated with such advertising; the supply of political,
cultural, artistic, sporting, scientific, educational or entertainment broadcasts,
including broadcasts of events; live streaming via the internet; the supply of
distance learning and services of an equivalent type which have a similar purpose
and function.
For telecommunications and electronic Services specified above, the place of
supply shall be in the State, to the extent of the use and enjoyment of the supply
in the State and outside the State, to the extent of the use and enjoyment of the
supply outside the State. The actual use and enjoyment of all telecommunications
and electronic Services shall be where these Services were used regardless of the
place of contract or payment.
The export of telecommunications services shall be subject to the zero rate as
stated in Article (32) of Cabinet Decision No. (52) of 2017 on the Executive
Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax. The
other telecommunication and electronic services will be charged at 5% VAT.
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