Input tax recoverability - branch of a foreign company

By Dmitry Strukov   on 25 January 2023


Hello, a company is considering establishing a UAE based branch which will conduct R&D activities. The branch will not generate any revenue and will be fully financed by the parent.   R&D will mostly be conducted by consultants outside of the UAE and thus output VAT will be reverse charged on the value of purchased services. Would it be possible to recover input VAT in this case? If the branch was providing services to i.e. a customer in the GCC, the supply of R&D services would be taxable - is it enough to meet the requirements of  article 54 (1b) of the VAT decree? 


Views : 933
More by Dmitry Strukov


  Read comments (0 Comments)