11 September 2026 · Scope
Who the Rule Covers (and Doesn't)
The out-of-scope treatment covers a natural person acting as a formal member of a board of directors. It does not cover a company that provides directorship services, nor a person delegated by a business to sit on a board in the business's name and invoiced for it, those are taxable supplies. Nor does it cover other services (consultancy, management) the same individual might provide, which are assessed separately.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Natural-person directorships
The rule is for individuals on boards.
- A natural person on a board.
- Government or private company.
- The formal directorship function.
- Out of scope of VAT.
The taxable cases
Companies and other services differ.
- A company providing directorships.
- A delegated, business-invoiced director.
- Consultancy or management services.
- Assessed for VAT on their own merits.
Related guides
Frequently Asked Questions
For scoping your role.
Does the rule cover a company acting as director?
No. A company providing directorship services makes a taxable supply.
Are my consultancy fees also out of scope?
No. Only the directorship function is out of scope; other services are assessed separately.
What about a delegated director?
Where a business delegates a person and invoices for it, that is a taxable B2B supply.
Can Exiloz scope my role?
Yes. We separate your out-of-scope directorship from any taxable services.
Where do you fall?
Exiloz tells you whether your role is out of scope or taxable.