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VAT

VAT Alert: Director Services

The Federal Tax Authority has recently published a VAT guide which provides a synopsis of the relevant VAT concepts, rules and procedures relating to the characterisation of director services under several models to determine whether a taxable supply of services exists.

The guide covers the fundamentals of the VAT treatment of director services, which includes determination of a place of supply, recovery of input tax, and the exceptional circumstances under which VAT would be zero rated.

It is imperative to note that specific place of supply rules exist for transactions between GCC implementing states.

To discuss how this impacts your business, please contact us.