The general rule is that directors provide a service for VAT purposes to their company. Services provided by a director should be taxable if: - the director undertakes services on a regular, ongoing and independent basis (such as an individual who acts as an executive or non-executive director on a board or a number of different boards); and - the total value of taxable supplies and imports made by the director, including supplies of director services, exceed the mandatory registration threshold. There are many special scenarios mentioned in the guide on Directors' services. The VAT is a transactional tax, so each type of service must be analyzed to conclude the taxability.

Yes, the Director's Service fee otherwise called as Management Fee is taxable under the UAE VAT Law. FTA has issued a guideline on applicability of tax on Director's Services in the month of April 2018 (VAT Guide - VATGDS 01).