Can you claim VAT on SaaS and software subscriptionsin the UAE?
Last reviewed
- Can you recover the VAT?
- Recoverable
- VAT charged
- 5%
- Corporate tax
- Deductible
Recoverable for business use, often through reverse charge since many vendors bill from abroad.
When you can claim the VATand when it's blocked
You can claim
- Recoverable for business use.
- Check each invoice: some vendors charge UAE VAT, others bill from abroad with no VAT, so you account for it under reverse charge.
You can't claim
- Businesses making exempt supplies must apportion.
- Personal subscriptions are blocked.
Worked examplesand why they land that way
- Recoverable
Slack billed from the US
Reverse charge.
Slack bills from abroad with no UAE VAT, so you account for 5% under reverse charge and claim it back in the same return. No self-invoice is needed since 1 January 2026.
- Recoverable
Local ERP reseller charging 5%
A UAE reseller charges 5% on its tax invoice, and software for your business is recoverable.
What to keepand what to watch
Documents you need
Tax invoice with TRN, or overseas invoice plus reverse charge entry.
Corporate tax
Deductible. Large perpetual licenses may be capitalized.
GL account: Software subscriptions
Common mistakes
Skipping reverse charge on overseas subscriptions.
What changed recently
Self-invoicing for reverse charge removed from 1 Jan 2026.
Questions peopleask about this
Do I need a self-invoice for overseas software?
No. Since 1 January 2026 you don't issue a self-invoice under reverse charge, but you still report the VAT and keep the invoice as support.
Can I claim VAT on personal subscriptions paid by the company?
No. Personal subscriptions are blocked.
What if my business also makes exempt supplies?
Then you apportion the VAT on shared costs like software.
Relatedexpenses
- Cloud Computing Recoverable
- Internet and Phone Depends
- Consultants, Freelancers, Contractors Recoverable