FTA Clarifies The Requirement For Self-Invoicing On Importing Concerned Services

Introduction

On 30 May 2025, the UAE Federal Tax Authority ("FTA") issued Public Clarification VATP044, shedding light on the obligations surrounding output tax accounting, issuance of tax invoices, and input tax recovery in relation to Concerned Services—i.e., "Services that have been imported, where the place of supply is considered to be in the [UAE], and would not be exempt if supplied in the [UAE]".

While the Clarification is grounded in the provisions of Federal Decree-Law No. 8 of 2017 on Value Added Tax ("Decree-Law") and Cabinet Decision No. 52 of 2017 on its Executive Regulation, its significance lies in its application of established legislative discretion—particularly Article 59(7)(b) of the Executive Regulation. Rather than introducing interpretive flexibility, the FTA is exercising its authority as contemplated by the legislation to determine cases where issuance of a tax invoice may be waived, thereby offering clear and practical guidance that