When is the time of supply if you are a VAT-registered supplier using vending machines? Is it when goods are dispensed or delivered to the machines?

A vending machine sells small items like snacks, drinks, cigarettes, lottery tickets, etc. when you insert coins. Suppliers place these machines in airports, malls, etc. so customers can buy things without a salesperson.

The supplier stocks and collects money from the machines regularly.

No. For vending machines, time of supply is when the supplier collects funds from the machine. So when the supplier visits and takes the money customers deposited, that’s the time of supply for the dispensed goods.


Ali Traders put a vending machine selling snacks and drinks in a Dubai mall. On March 25, 2018, they stocked it. On March 27, 28, 29, goods were dispensed when customers inserted coins. On April 5, Ali Traders collected the money.

Goods stocked: March 25

Goods dispensed: March 27, 28, 29

Money collected: April 5

Time of supply: April 5

The time of supply is April 5, when Ali Traders collected the funds. They should report and pay VAT  Registration for April, or the April-June quarter if filing quarterly.

This makes sense for cash flow. Without this rule, suppliers would pay tax invoice early without having collected funds. Suppliers must track collection dates to determine the tax period for payment.

Our Services

Contact us

Follow us

Payment methods

Thevatconsultant.com © 2024. All Rights Reserved.

Call Now Button