Wholesale of machinery, equipment and supplies

ISIC 465 aligns with the Qualifying Activity of 'Distribution of goods or materials in or from a Designated Zone'. Forensic audit focus is on the 'Resale' test: the customer must be a reseller or processor. If the machinery is sold to a final consumer for internal use, the 0% rate is disqualified for that specific transaction.

Audit Red Flag

Sales to end-users (B2C) or non-resellers within the UAE mainland, which reclassifies the income as Excluded Income subject to the 9% rate.

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