FTA Decision No. 17 of 2026: Recovering Input VAT on Employee Expenses

UAE FTA Decision No. 17 of 2026, effective 1 October 2026, sets specific cases and conditions for recovering input VAT on employer-provided employee expenses; recovery is only allowed where a contractual obligation or documented policy exists and all conditions for the relevant case are met.
The Decision covers six categories: employee transport, food and beverages, accommodation, temporary accommodation for new joiners (up to 30 days), mobile/Internet services, and parking.
Transport input VAT is recoverable only for home-to-work, client, or other job-related travel, where there is no personal benefit and no cash alternative/allowance option.
Accommodation recovery is narrowed: it applies only where work requires living near the site, use is for employees only, fittings are modest, and the benefit is not ordinary compensation; temporary accommodation for new joiners is limited and must be proportionate to basic needs.
Mobile/Internet and parking costs are recoverable only if they are necessary for work, personal use is incidental, monitoring/approval controls exist, business purpose is shown, and receipts are retained; the article notes recent VAT rule changes mean some accommodation costs are no longer recoverable under the general labour-law route unless specifically mandated.

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.