UAE Updates VAT Rules for Financial Institutions on SWIFT Charges and Input Tax Documentation

• UAE clarifies VAT obligations for financial institutions on SWIFT charges
• Public Clarification VATP041 issued on 28 April 2025 replaces VATP036
• Financial institutions must use reverse-charge mechanism for VAT on SWIFT services
• Typically, self-tax invoices are required due to lack of tax invoices from foreign banks
• FTA allows not issuing self-tax invoices if SWIFT Message has sufficient supply details
• Input tax on interbank charges recoverable if costs are used for taxable supplies
• Qualifying SWIFT Message can serve as evidence for input tax recovery if requirements are met

Source: regfollower.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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