11 September 2026 · The Answer
Are Director Fees Subject to VAT?
No, for a natural person acting as a board member. Since 1 January 2023, an individual director's board services are not treated as a supply of services and are outside the scope of UAE VAT, so the director does not charge 5% on directorship fees. The exception is where a company provides the directorship, or a business delegates someone to a board in its name, which is taxable.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Out of scope
Individual directors do not charge VAT.
- Board services of a natural person.
- Not a supply of services for VAT.
- No VAT on the directorship fee.
- Applies from 1 January 2023.
When it is taxable
The exception is the delegated case.
- A company providing directorships.
- A delegated person invoiced by a business.
- That is a taxable B2B supply at 5%.
- Other services taxed on their merits.
Related guides
Frequently Asked Questions
For independent directors.
Do I add VAT to my director fee?
No, not as a natural person on a board, those services are out of scope since 2023.
When is a director fee taxable?
When a company provides the directorship, or a business delegates a person to a board and invoices for it.
Does this apply to government boards too?
Yes. A natural person's board services for a government entity or private company are out of scope.
Can Exiloz confirm my position?
Yes. We confirm whether your director fees are out of scope.
Are your fees out of scope?
Exiloz confirms whether your directorship fees carry VAT.