Can I reclaim VAT for the laptop purchased for office staff?
Can I reclaim VAT for the laptop purchased for office staff?
Bryce Dsouza
The FTA has clarified that if goods or services are purchased for use by employees for their personal benefit, including the provision of entertainment services, then the VAT incurred on the cost is not recoverable unless an exception applies.
This means that all companies, including ‘designated government entities’, which provide entertainment services to employees are prevented from recovering any VAT included on such costs.
The only circumstances in which a taxable person is entitled to recover VAT on such costs are: where it is a legal obligation to provide those services or goods to those employees; it is a contractual obligation or documented policy to provide those services or goods to those employees so that they may perform their role and it can be proven to be normal business practice; and where the provision of goods or services is a deemed supply under the provisions of the decree-law.
So in this scenario that you have mentioned, it is possible to recover VAT for the laptop purchased for office staff in UAE.
Alexandra
Yes, If the business is registered under VAT,
they can claim a refund on expenses
Sam Alex
Yes, you can claim VAT on the laptop purchased for your staff, because it is for your business purposes.