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Can you claim VAT on flightsin the UAE?

Last reviewed

Can you recover the VAT?
No VAT to recover
VAT charged
0%
Corporate tax
Deductible

No VAT on the fare to claim. Agency fees and lounge access can carry 5% you can recover.

When you can claim the VATand when it's blocked

You can claim

  • International flights are zero-rated, so the fare carries no VAT and there is nothing to claim.
  • Taxable extras sold in the UAE, such as travel agency service fees or lounge access, can carry 5% and are recoverable for business travel.

You can't claim

  • Flights for leisure, family members, or reward trips are a personal benefit or entertainment, so VAT on any extras is blocked.

Worked examplesand why they land that way

  1. No VAT to recover

    Sales trip to Riyadh

    0% fare, nothing to claim.

    International flights are zero-rated, so the ticket carries no VAT and there's nothing to claim. The fare is still fully deductible for corporate tax.

  2. Recoverable

    Agency booking fee of AED 50 plus AED 2.50 VAT

    Recoverable with the agency's tax invoice.

    The fare has no VAT, but the UAE travel agency's own service fee does. With the agency's tax invoice showing its TRN, the AED 2.50 is recoverable because the trip is for business.

What to keepand what to watch

Documents you need

E-ticket and itinerary as expense evidence. Tax invoice for any agency service fee you want to claim.

Corporate tax

Deductible. Deductible for business travel. Incentive or leisure trips for clients are entertainment and 50% deductible.

GL account: Travel: airfare

Common mistakes

Labeling flights as 'exempt'. They are zero-rated, a different VAT category. Missing the 5% on travel agency fees.

Questions peopleask about this

Are flights zero-rated or exempt?

International flights are zero-rated. Domestic passenger transport is exempt. Either way there's no VAT on the fare for you to claim, but zero-rated and exempt are different categories, so label them correctly.

Can I claim VAT on lounge access or agency fees?

Yes, for business travel, when the receipt shows UAE VAT and the seller's TRN. Extras sold in the UAE, like lounge access or a travel agency's service fee, can carry 5%.

Are flights deductible for corporate tax?

Yes, for business travel. Incentive or leisure trips for clients count as entertainment, so only 50% of those is deductible.

Relatedexpenses

Rules thisanswer relies on

Legal basis: VAT Law Art. 45 (zero-rated international transport); Exec. Reg. Art. 33; VAT Law Art. 46 (exempt local passenger transport)

Sources

General treatment for VAT-registered UAE mainland businesses making fully taxable supplies. Free zones, partial exemption, government entities, and the facts of a specific purchase can change the answer. This guide isn't tax advice.