FTA Decision FTA Decision No. 17 of 2026 Federal Tax Authority

FTA Decision 17/2026 — Input tax on employee expenses

Federal Tax Authority Decision No. 17 of 2026 on the Cases and Conditions for the Recovery of Input Tax on Employee Expenses

In force Issued 9 September 2026 In force from 1 October 2026

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Official Arabic title
قرار الهيئة الاتحادية للضرائب رقم (17) لسنة 2026 — حالات وشروط استرداد ضريبة المدخلات عن مصاريف الموظفين
Document type
FTA Decision
Number
17
Issued by
Federal Tax Authority
Issued
9 September 2026
In force from
1 October 2026
Applies to
Taxable Persons recovering input tax on goods and services provided to employees for no charge.
Current position
In force from 1 October 2026. Issued 9 September 2026.
Topics
VAT · Returns & payment
Official text
Official Arabic text · English translation (unofficial)

Factual summary

Sets the cases and conditions under which a Taxable Person may recover input tax on goods and services that employees use for no charge, where a contract or documented policy requires them to be provided. It covers six cases: transport, food and beverages in remote locations, work-related accommodation, temporary accommodation for new employees (up to 30 days), mobile phones and data, and parking fees, each with its own conditions.

What it means in practice Professional insight

Who: VAT registrants that provide transport, meals, housing, phones or parking to staff. What to check: that each benefit fits one of the six cases and meets all its conditions, including the absence of a cash alternative where required, and that the supporting policies and records exist.

Key provisions

  • Art. 1 Applies to Taxable Persons recovering Input Tax on goods or services used by employees for no charge, where a contract or documented policy requires them to be provided (Art. 53(1)(c)(2) of the VAT Executive Regulation).
  • Art. 2(1)–(2) Transport between home and work or to clients' premises, with no cash alternative; food and beverages only where the residence is remote and no food facilities are available, linked to the work period, with no cash alternative.
  • Art. 2(3)–(4) Accommodation required by the work, not part of ordinary benefits and for the employee only (with stated exceptions); temporary accommodation for new employees for no longer than 30 days.
  • Art. 2(5)–(6) Mobile phones, airtime, data and home internet needed for the job under a documented policy with monitoring; parking fees incurred solely for business purposes, with a documented policy and retained receipts.
  • Art. 3 Published in the Official Gazette; effective 1 October 2026.

What changed

  1. 9 September 2026 Issued
  2. 1 October 2026 In force

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 23 August 2017 Federal Decree-Law FDL 8/2017 — VAT Law In force — amended
    1. 26 November 2017 Cabinet Decision CD 52/2017 — VAT Executive Regulation — Executive Regulation of this law In force — amended
      1. 24 July 2018 Cabinet Decision CD 41/2018 — Introducing the VAT refunds for tourists scheme — Made under Art. 68 In force
        1. 29 August 2018 FTA Decision FTA Decision 1/2018 — Retailer requirements for the VAT refunds for tourists scheme — Made under it In force
        2. 28 April 2019 FTA Decision FTA Decision 1/2019 — AED 7,000 cap on cash VAT refunds to tourists (repealed) — Made under it Repealed
        3. 26 May 2022 FTA Decision FTA Decision 4/2022 — One-year time limit for tourists to claim VAT refunds — Made under it In force
        4. 21 July 2022 FTA Decision FTA Decision 6/2022 — AED 35,000 cap on cash VAT refunds to tourists — Made under it In force
      2. 6 November 2018 FTA Decision FTA Decision 2/2018 — VAT refunds for tourists (consolidated 2026) — Made under Art. 68 In force — amended
      3. 17 December 2018 FTA Decision FTA Decision 4/2018 — No tax invoice for supplies through vending machines — Made under Art. 59(7) In force
      4. 26 May 2019 FTA Decision FTA Decision 7/2019 — Combined tax invoice/credit note and mailing addresses — Made under Arts. 59, 60 In force
      5. 22 February 2023 Ministerial Decision MD 26/2023 — When a supply counts as electronic commerce for VAT records — Made under Art. 72(5) In force
      6. 14 July 2026 Directive on Tax Transactions DTT 4/2026 — VAT on fees within life insurance contracts — Made under Art. 42 In force
      7. 1 September 2026 Cabinet Decision CD 149/2026 — VAT Regulation amendments — Amends Arts. 4, 29, 41, 52, 53, 54, 55, 57, 60 In force
      8. 9 September 2026 FTA Decision FTA Decision 17/2026 — Input tax on employee expenses — Made under Art. 53(1)(c) In force
    2. 28 December 2017 Cabinet Decision CD 55/2017 — Charities that may recover input tax (list as amended to Dec 2024) — Made under it In force — amended
    3. 28 December 2017 Cabinet Decision CD 56/2017 — Zero-rated medications and medical equipment — Made under it In force
    4. 28 December 2017 Cabinet Decision CD 59/2017 — Designated Zones for VAT (with the FTA list) — Made under it In force — amended
    5. 22 May 2018 Cabinet Decision CD 26/2018 — VAT refund on exhibition and conference services — Made under it In force
    6. 22 May 2018 Cabinet Decision CD 25/2018 — VAT on gold and diamonds between registrants (repealed) — Made under it Repealed
    7. 2 January 2020 Cabinet Decision CD 1/2020 — VAT refund for Expo 2020 Dubai official participants — Made under it In force
    8. 1 September 2020 Cabinet Decision CD 9/12 O of 2020 — Temporary zero rate on COVID-19 protective equipment — Made under it Spent
    9. 16 August 2022 Cabinet Decision CD 82/2022 — Refund of input tax on building and operating mosques — Made under it In force
      1. 29 October 2022 Ministerial Decision MD 162/2022 — Deadlines for mosque input tax refund requests — Made under it In force
    10. 25 August 2023 Cabinet Decision CD 91/2023 — Reverse charge on mobile phones, computers and tablets — Made under it In force
      1. 25 October 2023 Ministerial Decision MD 262/2023 — Which parts and pieces of electronic devices fall under the reverse charge — Made under it In force
    11. 1 November 2024 FTA Decision FTA Decision 8/2024 — Correcting VAT return errors that do not change the tax due — Made under it In force
    12. 16 December 2024 Cabinet Decision CD 127/2024 — Reverse charge on gold, precious metals and precious stones — Made under it In force
    13. 12 September 2025 Ministerial Decision MD 243/2025 — E-invoicing system — Made under e-invoicing provisions In force — amended (see E-Invoicing)
    14. 4 November 2025 Cabinet Decision CD 153/2025 — Reverse charge on metal scrap between registrants — Made under it In force
    15. 8 July 2026 Directive on Tax Transactions DTT 1/2026 — VAT on judicial expert services — Made under Art. 13 In force
    16. 8 July 2026 Directive on Tax Transactions DTT 2/2026 — VAT adjustments after leaving a Tax Group — Made under it In force
    17. 14 July 2026 Directive on Tax Transactions DTT 3/2026 — Converting digital-currency consideration to AED — Made under it In force
    18. 20 July 2026 Directive on Tax Transactions DTT 5/2026 — Valuing deemed supplies of services — Made under Art. 37 In force
    19. 22 July 2026 FTA Decision FTA Decision 13/2026 — Verifying suppliers before deducting input tax — Made under it In force

Official sources

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Related services: VAT Services · VAT Health Check

Last verified against official sources: 26 October 2026 · اقرأ بالعربية

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General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.