Skip to content
Alaan
Log InBook a Demo
Log In

Can you claim VAT on fuelin the UAE?

Last reviewed

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

Recoverable for vans and pool cars. Only the business share for cars also driven privately.

Still being confirmed. The FTA hasn't set one method for splitting fuel on cars used for both business and private trips. Use a mileage log or another reasonable method, write it down, and apply it consistently.

When you can claim the VATand when it's blocked

You can claim

  • Fuel for vans, trucks, and pool cars used for business is recoverable.
  • For a car also used privately, recover only the business share.

You can't claim

  • Fuel for an employee's private trips is a personal benefit and blocked.

Worked examplesand why they land that way

  1. Recoverable

    Delivery van fuel

    A van used only for deliveries has no personal use, so the 5% on its fuel is fully recoverable.

  2. Depends

    Sales manager's company car used privately on weekends

    Recover the business share only.

    The car is used for both business and private trips, so only the business share of the fuel VAT is recoverable. A mileage log, or another documented method you apply consistently, works out the split.

What to keepand what to watch

Documents you need

Tax invoice or fleet card statement showing VAT and TRN; mileage logs for mixed-use cars.

Corporate tax

Deductible. Deductible as a business or staff cost.

GL account: Vehicle fuel

Common mistakes

Claiming 100% VAT on fuel for a car the employee takes home.

Questions peopleask about this

How do I work out the business share?

Use a mileage log or another reasonable method, write it down, and apply it consistently.

Is fuel for delivery vans fully recoverable?

Yes. Vans, trucks, and pool cars used only for business have no personal use, so the full 5% comes back.

Is fuel for private trips ever recoverable?

No. Fuel for an employee's private trips is a personal benefit, so the VAT is blocked.

Relatedexpenses

Rules thisanswer relies on

Legal basis: Exec. Reg. Art. 53(1)(c); VAT Law Art. 54-55 (apportionment)

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.