The date of supply prescribes the point in time when a VAT Registrant needs to account for VAT. The date of supply is determined either as per the general rules or the special rules, depending on whether there will be periodic payments or consecutive invoices.

This Public Clarification discusses the date of supply for the Board fees paid to Independent Directors.

In the scenario where the Board fees for the Independent Directors are not known at the outset and are determined only upon the conclusion of the Annual General Meeting, the date of supply would be triggered when such fees are known.

In other cases where the Board fees are known at the outset, the date of supply would be determined as per Article 26 of the Federal Decree-Law No. (8) of 2017 on Value Added Tax (“VAT Law”) where there are periodic payments or consecutive invoices. However, where there are no periodic payments or consecutive invoices, the date of supply would be determined as per Article 25 of the VAT Law.

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