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UAE VAT Update: Public Clarification VATP038
06/06/2024UAE VAT Update: Public Clarification VATP038 on Manpower Supply Services vs Visa Facilitation Services06/06/2024
The Federal Tax Authority (FTA) has recently issued a welcome Public Clarification concerning the intricate VAT treatment concerning employment visas and their associated services. The clarification may have far-reaching implications for many businesses and corporate groups.
Generally, in the UAE, there may be certain scenarios/cases wherein the employment visa(s) are held by a company, but the associated employees actually perform their duties for and under the supervision and control of another company.
Given the aforementioned, the Public Clarification (VATP038) provides much-needed guidance on the taxability of such scenarios and provides a clear distinction between the supply of manpower services and the supply of visa facilitation services only.
We have provided a detailed brief of Public Clarification (VATP038) in this document.