UAE VAT Update: Public Clarification VATP038 on Manpower Supply Services vs Visa Facilitation Services06/06/2024
The Federal Tax Authority (FTA) has recently issued a welcome Public Clarification concerning the intricate VAT treatment concerning employment visas and their associated services. The clarification may have far-reaching implications for many businesses and corporate groups.
Generally, in the UAE, there may be certain scenarios/cases wherein the employment visa(s) are held by a company, but the associated employees actually perform their duties for and under the supervision and control of another company.
Given the aforementioned, the Public Clarification (VATP038) provides much-needed guidance on the taxability of such scenarios and provides a clear distinction between the supply of manpower services and the supply of visa facilitation services only.
Important Disclaimer:
This article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Information is based on UAE laws and guidance as of the publication date. Laws may change. Seek professional advice before acting. MACROE accepts no liability for actions taken based on this content.
