29/09/2026
UAE VAT update: Input tax on employee expenses
FTA Decision No. 17 of 2026 takes effect on 1 October 2026. It sets out when businesses may recover input VAT on certain goods and services provided to employees free of charge.
The decision covers work-related transport, food in qualifying remote locations, work-required accommodation, temporary accommodation for new employees, work phones and internet, and business parking.
Recovery is not automatic. Each category has specific conditions, and the business must have a contractual obligation or documented policy to provide the item. Keep the relevant invoices, receipts, approvals, and evidence of business use.
Need help reviewing your employee expenses and VAT records? Contact SIA Accounting & Auditing LLC at [email protected] or visit www.siauae.com.