24 April 2018 United Arab Emirates VAT affects director services The United Arab Emirates (UAE) introduced Value Added Tax (VAT) on January 1, 2018. The effect of VAT on services provided by directors varies depending on the two broad classifications of directors. An executive director is a member of the executive management of an organization. The executive director has an employment contract and is therefore viewed as an employee of the organization. Generally, employees who perform services for their employer are not considered to be making a taxable supply for VAT purposes. Non-executive directors (NEDs) are external directors and do not form part of the executive management team. NEDs are usually selected because of their specialized knowledge and are appointed to give expert advice. Consequently, a NED supplies services on a regular, ongoing and independent basis. Document ID: 2018-0877 |
