The VAT Public Clarification VATP037 provides important guidance regarding the performance of a director’s function on a board of directors by a natural person. Here are the key points:
- Effective Date: Starting from January 1, 2023, the performance of a director’s function in a formal capacity by a natural person (whether or not they are a resident of the UAE) on a board of directors of any government or private sector entity shall not be regarded for VAT purposes as a supply of services.
In summary, this clarification ensures that such director services are not treated as taxable supplies under VAT.
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