VAT Treatment for Directors on Board of Directors in UAE: Key Changes and Transitional Provisions

• VAT Public Clarification VATP037 issued by the FTA replaces VAT Public Clarification VATP031
• Performance of a Director’s function on a Board of Directors by a natural person for remuneration will not be considered a supply of services for VAT purposes from 1st January 2023
• Directors’ services will not be considered a supply of services for VAT if provided by a natural person appointed on a BOD of any government/private entity
• Services performed by non-resident Directors will also be excluded from the qualification of “supply of services for UAE VAT purposes”
• Transitional provisions require BOD members to assess the VAT treatment based on the date of supply
• BOD members must assess their registration and deregistration obligations based on the new legislation.

Source: premier-brains.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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