Understanding VAT Obligations on Imported Services in the UAE: Output Tax, Tax Invoices & Input Tax Recovery
Introduction As cross-border services become increasingly common, it’s essential for UAE-based businesses to understand how Value Added Tax (VAT) applies when receiving services from suppliers located outside the UAE. The Federal Tax Authority (FTA) has issued a Public Clarification to shed light on how to handle Concerned Services —that is, services received from abroad that are taxable if supplied within the UAE. In this blog, we explore the obligations of VAT-registered persons regarding: Accounting for Output Tax Issuing Tax Invoices Recovering Input Tax What Are “Concerned Services”? Concerned Services refer to services imported from outside the UAE where the place of supply is considered to be within the UAE under VAT law. These are typically professional, advisory, or digital services— unless they would be VAT-exempt if supplied locally . If you’re a VAT-registered business (a Registrant) in...