Can you claim VAT on internet and mobile phone billsin the UAE?
Last reviewed
- Can you recover the VAT?
- Depends
- VAT charged
- 5%
- Corporate tax
- Deductible
Recoverable for office lines. Staff mobile plans need a written policy first.
When you can claim the VATand when it's blocked
You can claim
- Office internet and landlines are recoverable.
- Mobile plans and devices for staff are recoverable only if you meet the FTA's conditions: a documented policy in place in advance, a business need, valid tax invoices, and controls on personal use.
You can't claim
- Blocked if any condition is missing.
Worked examplesand why they land that way
- Recoverable
Office fiber line
Office internet is a business cost, so the 5% is recoverable.
- Recoverable
Sales team mobile plans under a written policy
Staff mobile plans are recoverable when a documented policy existed beforehand, there's a business need, and personal use is controlled. With all of that in place, the 5% comes back.
- Blocked
Employee's personal plan reimbursed
Paying for an employee's own phone plan is a personal benefit, so the VAT is blocked.
What to keepand what to watch
Documents you need
Tax invoice from the telecom provider; mobile phone policy.
Corporate tax
Deductible.
GL account: Telecommunications
Common mistakes
Claiming VAT on staff mobile bills with no written policy.
Questions peopleask about this
What do I need before claiming VAT on staff mobile plans?
A documented policy in place in advance, a business need, valid tax invoices, and controls on personal use. If any one is missing, the VAT is blocked.
Are office internet and landlines recoverable?
Yes, they're a normal business cost.
Can I claim VAT on an employee's personal plan I reimburse?
No. That's a personal benefit, so the VAT is blocked.
Relatedexpenses
- Electronics Recoverable
- Cloud Computing Recoverable
- SaaS/software Recoverable