This Public Clarification clarifies the UAE VAT treatment of passively earned bank interest and dividend income. It establishes that since this income is generated without an active supply—from merely depositing money or holding shares—it does not constitute consideration for a supply. Consequently, both bank interest and dividend income are considered outside the scope of VAT and should not be reported on VAT returns. The clarification distinguishes this treatment from interest earned on loans or credit, which are exempt financial services under Article 42 of the Executive Regulations. It also notes that management fees remain taxable.