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"
- UAE Tax Agent Guide: Hiring, Roles, and EmaraTax Linking
- UAE Sets Phased Deadlines for Mandatory Electronic Invoicing
- UAE October 2026 E-Invoicing Guidelines: Key Updates
- UAE Updates Electronic Invoicing Guidelines with New Identification and Cross-Border Rules
- United Arab Emirates Sets E-Invoicing Deadlines for Businesses by Revenue Tier
