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UAE’s FTA released VATP044 on 26 May 2025, clarifying VAT output tax accounting, tax invoicing, and input tax recovery for imported services from outside the UAE.
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Taxable persons receiving imported services where UAE is the place of supply must account for VAT output tax, except for exempt supplies had the services been provided domestically.
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Registrants receiving such services must issue tax invoices to themselves and account for output VAT, unless an administrative exception from the FTA is granted.
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Input VAT on imported services may be recovered if used for making taxable supplies, provided the recipient is VAT-registered and maintains supporting documentation, like the supplier’s invoice.
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The FTA emphasizes the need for proper documentation to substantiate the input tax recovery claim on imported services, aligning with compliance protocols.
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The guidance ensures clarity for businesses on applying reverse charge VAT, self-invoicing, and recovering VAT when importing services, reducing compliance risks.
Source: Orbitax
