UAE FTA Eases VAT Compliance for Imported Services with New Clarification on Tax Invoices

• UAE FTA issued VAT Public Clarification VATP044 on May 27, 2025
• Clarification addresses tax invoices and input tax recovery for imported services under reverse charge mechanism
• Businesses importing concerned services must account for output tax and claim input tax in VAT return
• New relaxation allows businesses to use supplier invoices instead of self-issuing tax invoices
• Supplier invoice must clearly reflect service details and consideration paid
• Alternative documentation can be used if supplier invoice is not available
• Administrative relief does not apply if no invoice or equivalent documentation is provided
• Input tax recovery is possible without self-invoice if proper documentation is retained
• Clarification aims to streamline VAT compliance and align with international practices
• Businesses should update documentation and reporting procedures accordingly

Source: mailchi.mp

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.

---

---