it is an unusual situation....going by the Law it would be allowed only if it were a legal obligation for the employer to provide the accomodation. Not sure if FTA will accept the claim considering situation. If the company has a documented policy for such cases it can be argued in favour.

Rahib - input VAT may not be recoverable on hotel accommodation (quarantine) charges on account of specific restriction under Article 53(1) of the of the VAT Executive Regulations. . Your case does not fall under any of the three exceptions stated therein.

Rahib - can you please provide more details on this scenario. The FTA has provided some insight on COVID 19 related expenses in the webinar ‘REMOTE ANNUAL TAX AGENTS FORUM - 1 FOR 2020’ held virtually on 7th July 2020.

The Authority clarified that with regard to the expenses associated with COVID-19, such as the sterilizing of workplaces and the testing of employees, are considered general expenses. Input tax is recoverable in the event that the supplies and services made by the business are themselves taxable. In the event that the business is making taxable supplies only, the input tax is fully refundable. However, in the event that the business is making taxable and tax-exempt supplies, the input tax will be partially refundable. The FTA also indicated that input tax cannot be recovered on the expenses of testing employees’ families unless the employee bears the cost