VAT Public Clarification (P028): Mobile Phones, Airtime, and Data Packages Made Available to Employees for Business Use

The FTA has recently published VAT Public Clarification P028 on eligibility of a business to recover input VAT on expenses incurred in relation to acquiring phones, call minutes and data packages made available to its employees for business use.

In summary the FTA has clarified that an employer should be eligible to recover input VAT incurred for acquiring phones, call minutes and data packages for use by its employees solely for business purposes if it has a strict policy in place to restrict their use to business purposes. It should be noted that the business should be eligible for recovery of input VAT only if the policy was determined based on actual historical business usage and the policy was in place at the time the phones, call minutes and data packages were made available to the employee.

Source

• FTA
• Tecklenborgh

See also Overview of the 27 VAT Public Clarifications issued by the Federal Tax Authorities

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