Policy & Legal Updates
UAE VAT Guidelines Outline Rules for Staff Accommodation and Employee Benefits
Under UAE tax law, residential property leases are exempt from value-added tax, preventing employers from recovering input VAT on staff housing rent. The Federal Tax Authority may treat goods or services provided free to staff for non-business purposes as deemed supplies subject to the standard 5% tax. Mandatory VAT registration applies to businesses with annual taxable supplies exceeding AED 375,000.
