Can you claim VAT on legal, audit, and consulting feesin the UAE?
Last reviewed
- Can you recover the VAT?
- Recoverable
- VAT charged
- 5%
- Corporate tax
- Deductible
Recoverable from UAE firms, and through reverse charge for overseas advisers.
When you can claim the VATand when it's blocked
You can claim
- Legal, audit, tax, and consulting fees from UAE-registered firms carry 5% and are recoverable.
- Overseas advisers: reverse charge.
You can't claim
- Costs relating to exempt activities need apportionment.
- Fees for owners' personal matters are blocked.
Worked examplesand why they land that way
- Recoverable
Annual audit fee
Audit is a normal business service from a UAE-registered firm, so the 5% is recoverable.
- Recoverable
UK law firm advising on a contract
Reverse charge.
The UK firm doesn't charge UAE VAT. You account for 5% under reverse charge and claim it back in the same return.
What to keepand what to watch
Documents you need
Tax invoice with TRN; engagement letter.
Corporate tax
Deductible. Costs of capital transactions (acquisitions, share issues) may need to be capitalized.
GL account: Professional fees
Common mistakes
Splitting VAT as 'partial' by default when the fee is fully business-related.
Questions peopleask about this
Do overseas advisers charge UAE VAT?
No. You account for 5% under reverse charge and recover it in the same return.
Can I claim VAT on advice about an owner's personal matters?
No. Fees for owners' personal matters are blocked.
What if the advice relates to exempt activities?
Then the VAT needs apportioning, the same as other shared costs.
Relatedexpenses
- Consultants, Freelancers, Contractors Recoverable
- Government payments Depends
- Bank/financial fees Recoverable