VAT

Which VAT on my costs can I not get back (input VAT I cannot recover)?

Depends on the details: keep good documents

In short: Mainly the VAT on: meals and outings for people who are not your staff (clients, suppliers, owners), cars that can also be used privately, and things given free to staff for their personal use, unless an exception applies.

The basic rule

You cannot get back the VAT you paid (official term: input tax) on entertainment for non-employees, on cars bought, rented or leased for the business that are available for personal use, and on goods or services given free to staff for their personal benefit.

When it is different

Food and drinks in the normal course of a meeting are not entertainment.
Vehicles that are not 'motor vehicles' (trucks, forklifts), licensed taxis, emergency vehicles and rental-business cars are outside the block.
Employee benefits are recoverable if labour law requires them, or if a contract or documented policy provides them so the employee can perform the role and this is normal business practice; health insurance for employees and their family (one spouse and up to three children under 18) is recoverable.
Recoverable VAT is not also a Corporate Tax deduction; blocked VAT is part of the cost.

Documents to keep

Tax invoices
Note of who benefits (clients, staff)
Vehicle use policy

How safe is it?

Depends on the details: keep good documents Medium: blocked VAT recovered by mistake is a common correction.

When to ask a professional

Ask for vehicles and staff benefits. 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.

Check it with the free calculator: VAT registration calculator →

Sources

Executive Regulation of the VAT Decree-Law (Cabinet Decision No. 52 of 2017, as amended up to 2025) — Art. 53(1)–(4)
FTA public clarification: non-recoverable input tax on entertainment services — FTA public clarification
Federal Decree-Law No. 8 of 2017 on Value Added Tax (consolidated) — Art. 54 and 55
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 33(7)

Last verified: 19 October 2026

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

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