Can you claim VAT on vehicle maintenance and repairsin the UAE?
Last reviewed
- Can you recover the VAT?
- Depends
- VAT charged
- 5%
- Corporate tax
- Deductible
Recoverable for vans and pool cars. Only the business share for cars also used privately.
Still being confirmed. The FTA hasn't set one method for splitting maintenance on cars used for both business and private trips. Use a mileage log or another reasonable method, write it down, and apply it consistently.
When you can claim the VATand when it's blocked
You can claim
- Servicing, repairs, and tires for vans, trucks, and pool cars used only for business are recoverable.
- For a car also used privately, recover the business share.
You can't claim
- Maintenance of a car used for personal purposes is a personal benefit.
Worked examplesand why they land that way
- Recoverable
Service on a delivery van
A van used only for business has no personal use, so the 5% on servicing is recoverable.
- Depends
Tires on an executive's company car
Business share only.
The car is used privately as well as for work, so only the business share of the VAT is recoverable. Use the same split you use for fuel.
What to keepand what to watch
Documents you need
Tax invoice; vehicle register.
Corporate tax
Deductible.
GL account: Vehicle repairs and maintenance
Common mistakes
Claiming 100% VAT on a mixed-use car.
Questions peopleask about this
How do I split maintenance on a car used privately?
Recover only the business share. Use the same documented method you use for fuel, and apply it consistently.
Is maintenance on vans fully recoverable?
Yes. Vans, trucks, and pool cars used only for business have no personal use.
Is maintenance deductible for corporate tax?
Yes.
Relatedexpenses
- Fuel and Gas Depends
- Car Rental Depends
- Tolls Depends