VAT Guidelines: Manpower vs Visa Facilitation Services – Understanding Taxability and Considerations

• VAT Public clarification VATP038 was published by The Federal Tax Authority on 31st May 2024
• Guidelines on taxability of Manpower supply services and Visa Facilitation services were provided
• Manpower services involve identifying, recruiting, and hiring candidates for another entity
• Supplier of manpower services is responsible for employee performance, salaries, benefits, and control over working hours
• Total consideration for manpower services includes salaries, benefits, charges, and recharges
• Visa facilitation services are considered if certain conditions are met, such as being part of the same tax group and not responsible for employee obligations
• Total consideration for visa facilitation services includes expenses like typing fees, medical tests, and Emirates ID issuance
• Exclusions from the value of supply include employee salary, flight allowance, and other monetary benefits

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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