UAE FTA Eases VAT Compliance for Imported Services with New Clarification on Tax Invoices

UAE FTA issued VAT Public Clarification VATP044 on May 27, 2025
Clarification addresses tax invoices and input tax recovery for imported services under reverse charge mechanism
Businesses importing concerned services must account for output tax and claim input tax in VAT return
New relaxation allows businesses to use supplier invoices instead of self-issuing tax invoices
Supplier invoice must clearly reflect service details and consideration paid
Alternative documentation can be used if supplier invoice is not available
Administrative relief does not apply if no invoice or equivalent documentation is provided
Input tax recovery is possible without self-invoice if proper documentation is retained
Clarification aims to streamline VAT compliance and align with international practices
Businesses should update documentation and reporting procedures accordingly

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.