- Public Clarification VATP037 introduces significant changes in the VAT treatment of director services performed by natural persons
- Before January 2023, director services were considered a supply of services within the scope of VAT
- From January 1, 2023, remuneration received by a natural person appointed as a Director is not considered a supply of services for VAT purposes
- Services performed by natural persons appointed as directors by the Board of Directors do not qualify as a supply of services for VAT purposes
- Payments received before January 2023 are subject to VAT, while payments received from January 2023 onwards are out of scope
- Natural persons registered for VAT who do not meet the mandatory threshold must deregister
- Readers are encouraged to reach out to Senior Manager ECAG Tax, CA Ajil Varghese, for further clarification or support.
Source: emiratesca.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
