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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.

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