Understanding FTA’s New VAT Guidance for Board of Directors Members

• FTA revoked Public Clarification VATP031 and replaced it with VATP037
• VAT requirements for natural persons serving as directors on boards of directors addressed in new Public Clarification
• Amendment to Article 3 of VAT Executive Regulation introduced exception for BOD members
• Services rendered by BOD members to the company they serve will be excluded from UAE VAT
• Two essential conditions must be met for services to be excluded from VAT
• Transitional provisions for BOD members outlined in new Public Clarification
• VAT treatment for services rendered by BOD members depends on date of supply provisions in VAT law

Source: nrdoshi.ae

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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