23/10/2026
• FTA Decision No. 17 of 2026 addresses cases and conditions for recovering input tax incurred on employee expenses.
• Businesses should not assume that VAT paid on every employee-related cost is automatically recoverable; the nature of the expense, business purpose, supporting documents and applicable VAT restrictions must be considered.
• Companies should review expense reimbursement policies, corporate-card transactions, travel and other employee-related costs to confirm that input VAT recovery is adequately supported.
• Finance teams should align expense-claim procedures with the updated VAT requirements and retain appropriate evidence.
