Can you claim VAT on staff uniforms and clothingin the UAE?
Last reviewed
- Can you recover the VAT?
- Depends
- VAT charged
- 5%
- Corporate tax
- Deductible
Recoverable for uniforms and safety gear. Blocked for everyday clothes.
When you can claim the VATand when it's blocked
You can claim
- Recoverable for uniforms, branded workwear, and protective clothing required for the job under a contract or documented policy.
You can't claim
- Everyday clothing for staff is a personal benefit and blocked.
- Clothing given to clients follows the gift rules.
Worked examplesand why they land that way
- Recoverable
Safety boots for warehouse staff
Protective gear the job requires is a business cost, not a personal benefit. The 5% is recoverable, and a safety policy or contract that sets out what staff must wear makes that easy to show.
- Blocked
Eid outfits bought for the team
Everyday clothes given to staff are a free personal benefit, so the VAT is blocked. The cost is still deductible for corporate tax as a staff cost.
What to keepand what to watch
Documents you need
Tax invoice; uniform or PPE policy.
Corporate tax
Deductible. Uniforms and PPE are deductible. Clothing allowances are staff costs, generally deductible.
GL account: Uniforms and workwear / Staff benefits
Common mistakes
Claiming VAT on staff clothing that isn't a required uniform.
Questions peopleask about this
What counts as a uniform?
Branded workwear and protective clothing the job requires, set out in a contract or documented policy.
Are clothing allowances deductible?
Generally yes, as a staff cost for corporate tax. Uniforms and protective gear are deductible too.
What about clothing given to clients?
It follows the gift rules: the VAT is recoverable, but gifts worth more than AED 500 to one person in 12 months become a deemed supply.
Relatedexpenses
- Laundry Depends
- Flowers/Gifts Depends
- Health and wellness Depends