Can you claim VAT on laptops, phones, and electronicsin the UAE?
Last reviewed
- Can you recover the VAT?
- Recoverable
- VAT charged
- 5%
- Corporate tax
- Deductible (capital)
Recoverable on laptops and equipment. Staff phones need a written policy first.
When you can claim the VATand when it's blocked
You can claim
- Laptops, monitors, and equipment used for the business are recoverable.
- Mobile phones given to staff need the FTA's conditions to be met (documented policy in place in advance, business need, controls on personal use).
You can't claim
- Devices given to staff for personal use are blocked.
Worked examplesand why they land that way
- Recoverable
Laptop for a new hire
A laptop used for work is a business asset, so the 5% is recoverable. For corporate tax it's capitalized and depreciated rather than expensed in one go.
- Blocked
iPhone for an executive with no phone policy
VAT blocked.
The FTA lets you recover VAT on staff phones only if a documented phone policy existed before the purchase, with controls on personal use. Without one, the VAT is blocked.
What to keepand what to watch
Documents you need
Tax invoice; asset register; mobile phone policy.
Corporate tax
Deductible (capital). Capital items are depreciated rather than expensed.
GL account: Fixed assets: IT equipment
Common mistakes
Claiming VAT on phones without a documented policy that existed before the purchase.
Questions peopleask about this
What does the FTA need before I claim VAT on staff phones?
A documented policy in place before the purchase, a business need, valid tax invoices, and controls on personal use.
Are laptops expensed or capitalized?
Capitalized and depreciated for corporate tax, rather than expensed in one go. Keep them on your asset register.
What about devices staff keep for personal use?
Those are a personal benefit, so the VAT is blocked.
Relatedexpenses
- Internet and Phone Depends
- Furniture Recoverable
- Office supplies Recoverable