Can you claim VAT on taxis and ride-hailingin the UAE?
Last reviewed
- Can you recover the VAT?
- Depends
- VAT charged
- None on fare; 5% on platform fee
- Corporate tax
- Deductible
No VAT on the fare. The app's booking fee carries 5% you can claim for business rides.
Still being confirmed. Careem and Uber receipts don't always show the booking fee and its VAT the same way. Only claim VAT that's shown on a receipt with the platform's TRN.
When you can claim the VATand when it's blocked
You can claim
- Taxi fares are exempt local passenger transport, so there's no VAT on the fare.
- Ride-hailing apps charge 5% on their own marketplace or booking fee, which is recoverable for business trips if the receipt shows the VAT and TRN.
You can't claim
- Personal rides are blocked.
Worked examplesand why they land that way
- Recoverable
Careem ride to a client
No VAT on fare; claim VAT shown on the platform fee.
The fare is exempt local passenger transport, so it has no VAT. The app's booking fee carries 5%, recoverable for business trips when the receipt shows the VAT and the platform's TRN.
What to keepand what to watch
Documents you need
App receipt or monthly business account invoice.
Corporate tax
Deductible.
GL account: Travel: local transport
Common mistakes
Assuming the whole fare is VAT-free and missing the small recoverable VAT on app fees.
Questions peopleask about this
Is there VAT on taxi fares?
No. Taxi fares are exempt local passenger transport.
What does a ride-hailing receipt need to show?
The VAT on the app's booking fee and the platform's TRN. Without them, there's nothing to claim.
Can I claim VAT on personal rides?
No. Personal rides are blocked.
Relatedexpenses
- Public transport No VAT to recover
- Car Rental Depends
- Tolls Depends