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Can you claim VAT on food delivery ordersin the UAE?

Last reviewed

Can you recover the VAT?
Depends
VAT charged
5%
Corporate tax
Depends

Recoverable for working meals and business trips. Blocked for routine free team lunches.

Still being confirmed. There's no fixed rule on what counts as a documented policy for overtime or working meals. Put the policy in writing before the spend, and treat ad hoc team meals as blocked.

When you can claim the VATand when it's blocked

You can claim

  • VAT is charged at 5% on food and platform fees.
  • Recoverable for working meals in the normal course of a meeting and for subsistence when staff travel on business.

You can't claim

  • Routine free meals for staff are blocked unless a contract or documented policy requires them as normal business practice.
  • Meals for clients are entertainment.

Worked examplesand why they land that way

  1. Recoverable

    Lunch ordered in for a half-day client workshop

    Food ordered in so a business meeting can carry on is a working meal, which is recoverable. Keep the receipt showing the VAT and the platform's TRN, and note the meeting.

  2. Blocked

    Weekly free team lunch

    Blocked unless covered by policy.

    Routine free meals for staff are a personal benefit, so the VAT is blocked. It becomes recoverable only if a contract or a documented policy requires the meals as normal business practice.

What to keepand what to watch

Documents you need

Tax invoice from the restaurant or platform with TRN.

Corporate tax

Depends. Staff meals are deductible as staff costs. Client meals are 50% deductible.

GL account: Staff meals / Meeting expenses

Common mistakes

Coding as 0%. VAT was paid.

Questions peopleask about this

What counts as a working meal?

Food served in the normal course of a business meeting, so the meeting can carry on.

Can a policy make team meals recoverable?

Yes, if a contract or documented policy requires the meals as normal business practice. Routine free lunches without one are blocked.

Is there VAT on delivery platform fees?

Yes, 5% applies to both the food and the platform's fees.

Relatedexpenses

Rules thisanswer relies on