A vending machine is a machine that allows you to purchase snacks, drinks, alcohol, cigarettes, lottery tickets, and other small items by inserting coins or inserting coins into a special machine. the purpose. This is a common sight at airports, shopping malls, etc., where suppliers place products on machines that they can offer to customers, and the machines themselves can dispense the products without the presence of a salesperson.

These machines are installed by suppliers who periodically load goods and collect payment from the machines.

If you are a VAT registered supplier delivering goods through a vending machine, at what time does the delivery take place? Is it the date on which the delivery takes place, i.e. H. The date on which the goods are dispensed from this machine? Or the Is this the delivery date for products (stock items) to such machines?

The answer is no.

For deliveries by ATM, the delivery time is the date on which the merchant collects the money from the ATM. In other words, the time when the supplier visits the ATM location and collects the funds deposited by the customer at the ATM is the time when the issued product is delivered.

Let’s understand this with an example.

Ali Traders installed vending machines in shopping malls in Dubai. This vending machine sells snacks and drinks. On March 25, 2018, Ali Traders restocked their vending machines with snacks and drinks. For three days, March 27th, 28th, and 29th, 2018, we issued products by inserting the necessary coins into vending machines. On April 5, 2018, Ali Traders collects money from his ATM.

Goods stored in the machine

Goods issued

Funds collected by the machine

Date of delivery

25 March 2018

27, 28 and 29 March 2018
4 444 4 April 5, 2018

5 . April ,2018

The delivery time for the above scenario is April 5, 2018. This is because, in the case of deliveries by vending machines, the delivery time is the day the money is collected from the vending machine. Therefore, for monthly tax returns, the taxpayer must report and pay her VAT for April 2018. For quarterly reporting, you must report for the April to June tax period or the quarterly tax period to which April falls.

The above provisions are accurately worded considering the impact on cash flows in the absence of such provisions. Taxpayers who deliver goods through vending machines must clarify the timing of the above deliveries. Any discrepancies in determining the timing of deliveries will affect the flow of payments through early tax payments and penalties. It is also very important to track the date the funds were collected so that the taxpayer can determine the tax period in which to pay her VAT to her FTA.

You can also register for VAT Registration on our website:

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