VAT Public Clarification VATP044

On 26 May 2025, the UAE Federal Tax Authority (FTA) issued Public Clarification VATP044, confirming that UAE-based recipients of Concerned Services are not required to self-issue tax invoices if they retain valid invoices or equivalent documentation from overseas suppliers. This clarification resolves prior uncertainty following earlier guidance on SWIFT messages. The FTA emphasized that the reverse charge mechanism still applies, and recipients must maintain sufficient records to substantiate the supply. If no valid invoice or equivalent documentation is available, the recipient must issue a tax invoice to itself to remain eligible for input VAT recovery. This guidance aims to reduce administrative burdens while ensuring compliance.

Key takeaway

Businesses should review their documentation processes for imported services. Where valid supplier invoices are available, self-invoicing is not required. However, in their absence, failure to self-invoice may risk input VAT recovery.

Reference

• Decision No. (01-06-24) of ZATCA’s Board of Directors