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Can you claim VAT on consultants and freelancersin the UAE?

Last reviewed

Can you recover the VAT?
Recoverable
VAT charged
5% or none
Corporate tax
Deductible

Recoverable with a tax invoice from a VAT-registered supplier, or reverse charge if they're overseas.

When you can claim the VATand when it's blocked

You can claim

  • Recoverable when the supplier is VAT-registered and issues a valid tax invoice.
  • Freelancers under the AED 375,000 registration threshold may not be registered and cannot charge VAT.
  • Overseas contractors: reverse charge.

You can't claim

  • VAT charged by a supplier without a valid TRN cannot be recovered.
  • From 1 Oct 2026, FTA Decision No. 13 of 2026 sets out the supplier checks expected before you claim input VAT.

Worked examplesand why they land that way

  1. Recoverable

    Dubai design agency with TRN

    5%, recoverable.

    A VAT-registered agency charges 5% on a tax invoice with its TRN. The work is for your business, so the VAT comes back in full. Check the TRN on the FTA portal before you claim.

  2. Recoverable

    Freelance developer in Pakistan

    Reverse charge.

    An overseas freelancer doesn't charge UAE VAT. You account for 5% under reverse charge and normally recover it in the same return. Keep the contract and invoices as support.

  3. Blocked

    Unregistered local freelancer adds 5%

    Don't pay or claim it.

    A supplier without a TRN can't charge VAT, so this 5% isn't recoverable. Pay the fee without it, and check registration before you take on local freelancers.

What to keepand what to watch

Documents you need

Tax invoice with TRN (verify on the FTA portal); contract or statement of work.

Corporate tax

Deductible. Payments to related parties must be at arm's length.

GL account: Professional fees / Contractors

Common mistakes

Paying VAT to an unregistered freelancer. Not checking the TRN.

Reverse charge and imports

Common for overseas freelancers and agencies.

How reverse charge works

What changed recently

Article 54 bis (input tax linked to tax evasion) from 1 Jan 2026; verification procedures from 1 Oct 2026.

Questions peopleask about this

How do I check a supplier's TRN?

Verify it on the FTA portal before you claim. From 1 October 2026, FTA Decision No. 13 of 2026 sets out the supplier checks expected before you claim input VAT.

What if a freelancer isn't VAT-registered?

Freelancers below the AED 375,000 registration threshold may not be registered, so they can't charge VAT. If one adds 5% anyway, don't pay it or claim it.

Can the FTA deny VAT I've paid a supplier?

Yes, if the input VAT is linked to tax evasion and you knew or should have known. That's why the supplier checks matter.

Are payments to related parties treated differently?

For corporate tax, payments to related parties have to be at arm's length. The VAT treatment is the same.

Relatedexpenses

Rules thisanswer relies on