Meals, travel and gifts

Is a lunch or dinner with a client deductible?

Depends on the details: keep good documents

In short: Half of it, for Corporate Tax: meals and outings with clients, suppliers, shareholders or other business partners count at 50%. For VAT, you usually cannot get back the VAT on them.

The basic rule

A business can take off 50% of the cost of entertaining clients, shareholders, suppliers or other business partners, including meals, hotels, transport and tickets, as long as it is for the business (official term: entertainment expenditure).

When it is different

Food and drinks provided in the normal course of a business meeting (for example coffee and sandwiches at your office) are not 'entertainment services' for VAT.
Entertainment of your own employees is not subject to the 50% Corporate Tax limit, but VAT on it is blocked unless an exception applies.
A meal with friends or family with no business purpose is personal and not deductible at all.
SoloBooks keeps the full amount; the 50% adjustment is made in your return.

Documents to keep

Itemised receipt
Who attended, which company, and the business purpose (write it in the description)
Tax invoice if you are registered for VAT (even though the VAT is usually not recoverable)

How safe is it?

Depends on the details: keep good documents Medium: the frequent mistake is deducting 100%, or claiming family meals as client meals.

When to ask a professional

Usually not needed if you apply the 50% rule and note the business purpose. Ask for large events or mixed staff and client events. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.

If you pay no Corporate Tax this year (Small Business Relief): If you use Small Business Relief this year, you pay no Corporate Tax anyway, so this cost does not change your tax for that year. Keep the documents anyway: they back up your income figure, and they matter if you stop qualifying later.

Check it with the free calculator: Small Business Relief calculator →

Sources

Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 32(1)–(2) and Art. 28
Executive Regulation of the VAT Decree-Law (Cabinet Decision No. 52 of 2017, as amended up to 2025) — Art. 53(1)(a) and 53(2)(a)
FTA public clarification: non-recoverable input tax on entertainment services — FTA public clarification

Last verified: 19 October 2026

General information, not tax advice. Your situation may differ.

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