VAT for freelance administrators’ services rely chiefly on whether or not the fees for the afore mentioned directors were best-known from the starting time or not.


The Federal Tax Authority (FTA) has confirmed that the date of provide for VAT (VAT) with respect to freelance directors’ services is set either in accordance with the final rules or the special rules, relying chiefly on whether or not the fees for the afore mentioned administrators were best-known from the starting time or not.

The authority afore mentioned that wherever such fees area unit best-known from the starting time, the date of provide shall be determined in accordance with the provisions of Articles (25) and (26) of Federal Decree-Law No. (8) of 2017 on VAT, looking on whether or not or not there’ll be periodic payments.

If such fees don’t seem to be best-known from the starting time, they shall be determined upon conclusion of the annual general meeting and therefore the date of provide shall be established only if such fees become best-known.

The FTA explained that in instances wherever the board fees area unit best-known at the starting time and involve periodic or multiple payments, the date of provide would be determined as per Article (26) of Federal Decree-Law No. (8) of 2017 on VAT, wherever the date of provide would be the earliest of the subsequent three: The date of issuing of the tax invoice; the date the payment is due as shown on the tax invoice; and therefore the date of receipt of payment. 

If twelve months have passed from the date of provision of services and none of the afore mentioned events has occurred, the date of provide are going to be triggered at the tip of the twelfth month.

As for the instances wherever board fees area unit best-known at the starting time however there aren’t any periodic or multiple payments, the date of provide would be determined as per Article (25) of the Federal Decree-Law No. (8) of 2017 on VAT. consequently, the date of provide would be the earliest of the subsequent three: The date of issuing of a tax invoice; the date on that the availability of services was completed; and therefore the date of receipt of payment.