Can you claim VAT on metro and bus faresin the UAE?
Last reviewed
- Can you recover the VAT?
- No VAT to recover
- VAT charged
- None
- Corporate tax
- Deductible
No VAT on metro, bus, tram, or ferry fares.
When you can claim the VATand when it's blocked
You can claim
- Metro, buses, trams, and ferries within the UAE are exempt.
You can't claim
- Transport mainly for pleasure (sightseeing buses, dhow cruises) is taxable at 5% and usually entertainment.
Worked examplesand why they land that way
- No VAT to recover
Metro trip to a client
No VAT.
Local public transport is exempt, so the fare has no VAT. It's still deductible for corporate tax.
What to keepand what to watch
Documents you need
Nol card statement as expense evidence.
Corporate tax
Deductible.
GL account: Travel: local transport
Common mistakes
Booking a dhow cruise for clients as 'public transport'.
Questions peopleask about this
Is there VAT on metro and bus fares?
No. Metro, buses, trams, and ferries within the UAE are exempt.
What about sightseeing buses or dhow cruises?
Transport mainly for pleasure is taxable at 5% and usually counts as entertainment, so the VAT is blocked.
Are fares deductible for corporate tax?
Yes.
Relatedexpenses
- Taxis Depends
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