UAE VAT changes could raise costs and compliance burdens for Indian businesses

Revised UAE VAT rules took effect October 1, narrowing recovery for employee spending, The Economic Times reports. Food and beverage claims now must meet conditions for remote locations, while work-phone and internet expenses may require usage policies and evidence of monitoring. Tax experts said large, labor-intensive businesses could face additional annual costs of hundreds of thousands of dirhams, depending on how much spending loses VAT eligibility. The changes apply to all UAE businesses.