Can you claim VAT on DEWA and utility billsin the UAE?
Last reviewed
- Can you recover the VAT?
- Depends
- VAT charged
- 5%
- Corporate tax
- Deductible
Recoverable for business premises. Blocked for free staff housing unless required.
Still being confirmed. Utilities for labor camps and other staff housing may be recoverable where the law requires you to provide accommodation. That exception is still being confirmed, so check with your tax advisor before claiming.
When you can claim the VATand when it's blocked
You can claim
- Electricity, water, and cooling for offices, warehouses, and shops are recoverable.
- The municipality housing fee on utility bills is not VAT.
You can't claim
- Utilities for staff accommodation provided free are blocked unless legally or contractually required.
Worked examplesand why they land that way
- Recoverable
DEWA bill for the office
Electricity and water for business premises are recoverable. The housing fee on the bill isn't VAT, so leave it out of the claim.
- Blocked
DEWA bill for an employee's apartment
Blocked unless required.
Utilities for staff housing you provide for free are a personal benefit, so the VAT is blocked unless the law or the employment contract requires you to provide them.
What to keepand what to watch
Documents you need
Tax invoice from the utility with TRN.
Corporate tax
Deductible.
GL account: Utilities
Common mistakes
Claiming VAT on the housing fee line.
Questions peopleask about this
Is the housing fee on a DEWA bill VAT?
No. The municipality housing fee isn't VAT, so leave it out of the claim.
Are utilities for staff accommodation recoverable?
Only when the law or the employment contract requires you to provide them. Free staff housing utilities are blocked otherwise.
Are utilities deductible?
Yes, for corporate tax.
Relatedexpenses
- Property expense Depends
- Property maintenance services Depends
- Internet and Phone Depends