Sometimes businesses will bundle together two or more goods or services into a single transaction as a sales strategy to attract more customers. Combining goods and services can also be necessary if the nature of the items means they need to be supplied together.

In the UAE, when multiple components are provided in one transaction this is called a ‘multiple supply’ or ‘single composite supply’ for VATReturn uae purposes. The classification depends on the type of supply.

‘Multiple supplies’ refer to distinct, separable components provided together. To learn more about these, please read the section on ‘Multiple Supplies in UAE VAT Registration.

‘Single composite supplies’ are when two or more goods or services are bundled together naturally as one integrated product. The UAE VAT Registration Executive Regulations provide guidance on which supplies should be treated as single composites, and the conditions required.

Examples of Single Composite Supplies

As outlined in the regulations, a single composite supply has:

One main ‘principal’ component

All other components that are essential or incidental to the principal component

No component that is a significant part on its own, but rather supports the principal component

In essence, the components are bundled due to natural necessity, with secondary items dependent on the main element. While not defined in law, the ‘principal component’ is generally the predominant part of the composite.

A supply can also be composite if two or more elements are so closely linked they cannot be easily or logically separated.

Conditions for Single Composite Supplies

A supply is considered a single composite when:

The supplier does not separately identify or charge for the different components

All components are supplied by one supplier


An airline provides free lounge access to all business class passengers on international flights. As the lounge access complements the flight service, it is treated as part of a single composite supply of the international flight, subject to 0% VAT Dubai.

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