FTA Clarification on VAT: The Federal Tax Authority confirmed that 5% VAT applies to sports player transactions in the UAE, depending on each contract’s structure, nature, and whether the player is classified as an employee or service provider.
Employment vs. Service Contracts: Players employed directly by clubs with salaries and allowances are not subject to VAT, while those engaged under service contracts—providing defined services—fall within the VAT scope as taxable supplies.
Case-by-Case Assessment: Each player transaction is evaluated individually under Federal Decree-Law No. (8) of 2017 and its Executive Regulations to determine if VAT applies based on the contractual terms and transaction characteristics.
VAT’s Broader Economic Impact: Since its 2018 introduction, VAT has diversified UAE’s revenue, strengthened fiscal stability, and improved compliance and transparency, with 2024–2025 Pro League transfers valued at Dh141 million, mostly involving Arab players.
Source: gulfnews.com
Latest Posts in "United Arab Emirates"
- Briefing document & Podcast: UAE E-Invoicing: VAT Compliance, Timelines, and Requirements
- UAE Mandates E-Invoicing for VAT Businesses: Key Deadlines and Compliance Requirements Announced
- Oxinus Named Among UAE’s First Five Pre-Approved eInvoicing Providers; Launches EsalTech with Dhruva
- The Free Zone Mainland Operating Permit: Opening Mainland Market Access for Dubai’s Free Zone Companies
- Declaration of Tax Group Eligibility and Compliance Summary
