VAT Fixed Establishment Risks in the UAE: Employer Record

The risk of Fixed Establishment (FE) exposure to the Overseas company based on the UAE VAT regulations may result into a VAT registration.

• Employer of record (EoR) - A UAE company [licensed to provide manpower and similar services] who serves as the legal employer of the employee on behalf of another UAE company/ Overseas company.

• Fixed Establishment (FE) - Any fixed place of business, in which business is conducted regularly or permanently and where sufficient human and technology resources exist to enable the person to supply or acquire Goods or Services.

How can Crowe help?

1. Determine if Overseas Company with EoR structure qualifies a FE.
2. If qualifying as FE, the Overseas company should register for VAT based on the VAT registration threshold.
3. After obtaining a VAT registration, ensure VAT is charged to customers for supply of goods and services.