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May 15, 2026

This Public Clarification, VATP044, details the VAT obligations for Taxable Persons importing 'Concerned Services' into the UAE. It confirms that such transactions are treated as taxable supplies made to oneself, requiring the recipient to account for output tax under the reverse charge mechanism. The guidance clarifies the requirement to issue a self-invoice and outlines the conditions for an administrative exception, where retaining the overseas supplier's invoice may suffice. It also specifies the documentary evidence required, as per Article 48 and Article 55 of the Decree-Law, for a registrant to validly recover the related input tax.

VATP044

VAT Public Clarification

Concerned Services – Accounting for Output Tax, issuing Tax Invoices, and Input Tax recovery

Issue

Taxable Persons receiving Services from outside the UAE while the place of supply of such Services is in the UAE, are required to account for VAT on these Concerned Services, unless the Services would be exempt had they been supplied in the UAE.

This Public Clarification clarifies the requirement to account for the Output Tax and issue Tax Invoices in respect of Concerned Services and the documentary requirements for recovering Input Tax in respect of these Services.

Summary

Taxable Persons that Import Concerned Services from outside the UAE, which have a place of supply in the UAE, are regarded as making Taxable Supplies to themselves, unless the Services would be exempt had they been supplied in the UAE.

A Registrant receiving the Concerned Service ('Recipient') is required to account for Output Tax in respect of the Concerned Service and to issue a Tax Invoice to itself, unless the Recipient obtained an administrative exception from the FTA allowing them not to issue a Tax Invoice.

A Recipient may recover the related Input Tax to the extent the Concerned Service was acquired to make Taxable Supplies, provided the Recipient is registered for VAT and obtains and retains the relevant supporting documents, e.g. the supplier's invoice.

Detailed analysis

General

In this clarification, Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments is referred to as 'Decree-Law' and Cabinet Decision No. 52 of 2017 on the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments, is referred to as 'Executive Regulation'.

A Registrant making Taxable Supplies is required to report the VAT imposed on the supply and issue an original Tax Invoice within 14 days from the date of supply.

A Registrant is only entitled to recover the related Input Tax when all the relevant requirements are met, including the retention of the relevant supporting documents.

These distinct matters are addressed in more detail below.

Obligation to account for Output Tax

Taxable Persons often receive Services from outside the UAE. Where the place of supply of these services is in the UAE, such imported Services constitute Concerned Services, provided they would not be exempt from VAT had they been supplied in the UAE.