Expense rules in United Arab Emirates.
All FTA UAE rules: 5% VAT, travel allowances and VAT recovery rules in the United Arab Emirates.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 5% | 100% reclaimable | FTA standard |
| Travel meals | 5% | 100% reclaimable | Subsistence allowance |
| Accommodation | 5% | 100% reclaimable | Tax invoice required |
| Fuel | 5% | 100% reclaimable | Business records |
| Metro / bus / taxi | Exempt / 5% | Partial | Public transport exempt |
| Flight | 0% | N/A | International zero-rated |
| Client gifts | 5% | Limited | FTA reasonable limit |
| Parking / Salik | 5% | 100% reclaimable | Tax invoice |
VAT 2018
Lowest GCC rate.
Tax invoice
Full tax invoice > AED 10,000.
Retention
FTA records: 5 years minimum.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | AED 1,00/km | By company | Standard practice |
| Motorcycle | AED 0,60/km | By company | Reduced rate |
No federal rate
UAE has no federal km rate.
MNC practice
Private sector standard.
Records
Date, destination, km, business purpose.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Dubai | AED 300 | AED 800 | AED 1,100 |
| Abu Dhabi | AED 280 | AED 700 | AED 980 |
| Senior executive | AED 400 | AED 1,200 | AED 1,600 |
| Foreign — London | AED 400 | AED 1,000 | AED 1,400 |
| Foreign — New York | AED 500 | AED 1,300 | AED 1,800 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on invoice.
No statutory rate
No mandatory UAE cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| UAE → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | No reciprocity | — | No agreement |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| UAE VAT for foreign | Business VAT Refund Scheme | 31 August N+1 | FTA — Form VAT311 |
Business VAT Refund
Min annual refund FTA.
Eligible countries
FTA list updated annually.
Tourist refund
Planet Tax-Free system at airports.
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