Answers

• Are transactions within a VAT tax group excluded from UAE e-invoicing?Yes, for 24 months from 1 January 2027 under Decision 197 of 2026. Group members may still issue e-invoices to each other voluntarily.
• Can a UAE employer delegate salary payment to another company?Yes. Resolution 340 lets an employer delegate wage payment if MOHRE has the delegate's details, but the employer stays responsible.
• Can a UAE employer dismiss a worker for illness?Not before using accrued leave. Article 46 bars ending service for medical unfitness until the worker's legally accrued leave is used.
• Can a UAE worker quit without notice?Yes, in the four cases in Article 45, keeping all end-of-service rights. Each case has conditions, such as 14 working days' notice to MOHRE.
• Can a UAE employer charge a worker recruitment fees?No. Article 6 of the UAE labour law forbids charging a worker the fees and costs of recruitment and employment, directly or indirectly.
• Can a UAE employer keep a worker's passport?No. Article 13 of the UAE labour law forbids withholding a worker's official documents. Keep copies on file, not the originals.
• Can UAE nationals reclaim VAT on building a new home?Yes. A UAE national building a new home for family use can claim back VAT on contractors and fixed materials within 12 months.
• Does a payment certificate trigger VAT in the UAE?No. The FTA says certification alone does not trigger the date of supply, but it often sets a payment due date or invoice that does.
• Does UAE e-invoicing apply to business-to-consumer sales?Not yet. Decision 244 of 2025 keeps business-to-consumer sales outside the e-invoicing system until the Minister decides otherwise.
• Does SupaJack Construct do scheduling, BIM or safety management?No. SupaJack Construct tracks project stages, approvals, inspections and submittals, but has no Gantt scheduling, BIM or safety module. What it covers instead.
• Does unpaid leave count toward gratuity in the UAE?No. Articles 33 and 51 exclude unpaid leave and unpaid absence from the service term used to calculate end-of-service gratuity.
• How does VAT bad debt relief work in the UAE?Article 64 lets a supplier reduce output VAT on an unpaid invoice written off after six months, once the customer is notified.
• How is a construction advance payment recovered?A construction advance is recovered as an agreed percentage of each certificate until repaid, capped at what is left, with its VAT reversed.
• How is gratuity calculated in the UAE?UAE gratuity is 21 days' basic wage per year for the first five years and 30 days per year after, capped at two years' wage, after one year of service.
• How long can a non-compete clause last in the UAE?Up to two years after the contract ends under Article 10, limited by time, place and type of work, and void if the employer breaches.
• How long is maternity leave in the UAE private sector?Sixty days under Article 30: 45 at full pay and 15 at half pay, plus up to 45 unpaid days for illness linked to the birth.
• How long can a probation period be in the UAE?Up to six months under Article 9 of the UAE labour law, once per employer, with 14 days' written notice to end it during probation.
• How long does a worker have to file a labour claim in the UAE?Two years from the end of employment under Article 54. Disputes start at MOHRE, which decides claims up to AED 50,000 itself.
• How long does a business have to issue an e-invoice in the UAE?Fourteen business days from the transaction date, under Decision 197 of 2026. It applies to e-invoices and electronic credit notes.
• How long must VAT records about real estate be kept in the UAE?Fifteen years after the tax period for real estate records, under Article 71 of the VAT regulation. Other records follow tax procedures law.
• How many annual leave days do UAE employees get?UAE private-sector workers get at least 30 days' paid annual leave a year after one year, and 2 days a month between six months and one year.
• How many days of bereavement leave does a UAE worker get?Article 32 gives five paid days for a spouse and three for a parent, child, sibling, grandchild or grandparent, from the date of death.
• How many overtime hours are allowed in the UAE?UAE law limits overtime to two hours a day, and total working hours to 144 in any three weeks, except as the Implementing Regulation allows.
• How many sick leave days does a UAE worker get?Up to 90 days a year after probation: 15 at full pay, 30 at half pay, the rest unpaid, under Article 31 of the UAE labour law.
• How many weekly days off must a UAE employer give?At least one paid day a week under Article 21 of the UAE labour law. The contract or work rules decide which day, and the Cabinet may add more.
• How much can a UAE employer deduct from a worker's salary?Article 25 allows set deductions only, with a 50% cap on all of them together. Overpayments are capped at 20% and fines at 5%.
• Is the sale of bare land exempt from VAT in the UAE?Yes. Sale or lease of bare land is exempt. Land with buildings, partial buildings or civil engineering works is taxed at 5%.
• Is end-of-service gratuity capped in the UAE?Yes. Article 51 caps a foreign worker's end-of-service gratuity at two years' wage, whatever the length of service.
• Is gratuity paid if you resign in the UAE?Yes. Under UAE Federal Decree-Law 33 of 2021 gratuity is paid at the same rate whether a worker resigns or is dismissed, after one year of service.
• Is work on a public holiday paid extra in the UAE?Yes. Article 28 gives another day off, or the day's normal wage plus at least 50% of the basic wage for each public holiday worked.
• Is residential rent or resale exempt from VAT in the UAE?Yes, other than the first supply. The FTA real estate guide says supplies of residential buildings after the first supply are exempt.
• Is the first sale of a new residential building zero-rated in the UAE?Yes, if the first sale or lease of a residential building is within three years of completion, per the FTA real estate VAT guide.
• Is unused annual leave paid out in the UAE?Yes. A UAE worker who leaves before using accrued leave is paid for it, including the last part-year, calculated on the basic wage under Article 29(9).
• Is VAT charged at 5% on construction services in the UAE?Yes. The FTA real estate guide says construction services supplied in the UAE are taxed at 5% whatever type of building is built.
• Is VAT charged on retention in the UAE?Yes. VAT on construction retention is due at the earliest of its payment, a tax invoice for it, or 12 months after the work is certified complete.
• Is VAT charged on snagging works in the UAE?Not when the original builder fixes snags at its own cost. A second contractor, or a fee for the fix, is a new 5% supply.
• What are the normal working hours in the UAE private sector?Eight hours a day or 48 a week under Article 17, with at most two hours' overtime a day and a break after five hours.
• What happens if a UAE company pays salaries late?Resolution 340 of 2026 escalates on days 2, 5, 11, 16 and 21 after the due date: alerts, permit bans, fines, disputes and travel bans.
• What happens if a worker does not return from leave in the UAE?Under Article 34 the worker is not paid for the days absent after leave without a legitimate reason. Article 50 covers abandoning work.
• What is a WPS SIF file?A WPS SIF is the salary information file a UAE employer sends through its bank or exchange house to pay wages: one EDR line per worker and one SCR header.
• What is an accredited service provider for UAE e-invoicing?A provider accredited by the Ministry of Finance to exchange e-invoices and report them to the FTA. Large businesses must appoint one by 30 October 2026.
• What is an e-invoice in the UAE?A structured invoice exchanged electronically and reported to the FTA. The Ministry of Finance says PDFs, scans and emails are not e-invoices.
• What compensation is due for unlawful dismissal in the UAE?Article 47: dismissal for a proven complaint or lawsuit is unlawful, and courts award up to three months' wage plus notice and gratuity.
• What must an employer pay when a worker dies in the UAE?Article 15: wages, entitlements and gratuity go to the family within 10 days, and the employer pays repatriation if the family asks.
• What is parental leave in the UAE private sector?Five paid working days for a father or mother of a newborn under Article 32, taken at once or in parts within six months of birth.
• What is the 12-month VAT rule for construction in the UAE?Under Article 26, if no invoice, due date or payment occurs, VAT on continuous construction supplies is due 12 months after the work.
• What is the 85% rule in the UAE Wage Protection System?Under Resolution 340 of 2026, an employer that transfers at least 85% of total wages by the due date counts as compliant with WPS.
• What is the minimum working age in the UAE?Fifteen. Article 5 bars employing anyone younger and limits juveniles to six hours a day, no night work and no hazardous work.
• What is the notice period in the UAE?Article 43 sets 30 to 90 days, the same for both sides. Whoever skips it pays the worker's wage for the days not given.
• What is the overtime rate in the UAE?UAE overtime is paid at the basic hourly wage plus at least 25%, or plus at least 50% between 10 pm and 4 am for workers who are not on shifts.
• What is the VAT registration threshold in the UAE?Registration is mandatory above AED 375,000 of taxable supplies and optional from AED 187,500, under Articles 7 and 8 of the VAT regulation.
• What compensation is due for a work injury in the UAE?Article 37: treatment costs, full wage for up to six months then half wage for six more, and 24 months' basic wage on death.
• When can input VAT be recovered in the UAE?Article 55: in the first period you hold a valid tax invoice and pay the consideration, for costs used in taxable supplies.
• When does e-invoicing start in the UAE?UAE e-invoicing starts voluntarily from July 2026; businesses with AED 50m+ revenue must implement by 1 January 2027 and smaller ones by 1 July 2027.
• When is a building treated as complete for UAE VAT?On the date a qualified party certifies it complete, or earlier if it is occupied first, per the FTA real estate VAT guide.
• When is the VAT return due in the UAE?By the 28th day after the end of each tax period, under Article 64 of the VAT regulation. The standard period is three months.
• When must a tax credit note be issued in the UAE?Within 14 days of the event that reduces the VAT due, under Article 62, for example a cancelled supply or a reduced price.
• When must a tax invoice be issued in the UAE?Within 14 days of the date of supply under Article 67 of the UAE VAT law. For construction, the date of supply follows the continuous-supply rule.
• When must a worker leave company accommodation in the UAE?Within 30 days of the end of service under Article 16, unless the employer agrees to a longer stay, at the worker's cost or as agreed.
• When must a final settlement be paid in the UAE?A UAE employer must pay a worker's wages and all end-of-service entitlements within 14 days of the contract ending, under Article 53.
• When must private-sector salaries be paid in the UAE?By the 1st of each month for the previous month, through WPS. Resolution 340 of 2026 set this single due date from 1 June 2026.
• When must smaller UAE businesses start e-invoicing?Businesses under AED 50 million revenue must appoint a provider by 31 March 2027 and implement e-invoicing by 1 July 2027.
• Which workers are excluded from WPS in the UAE?Resolution 340 of 2026 lists eleven exclusions, including workers on approved unpaid leave, absconding reports and wage cases in court.