An expense claim is a formal request by an employee to be reimbursed for business-related costs paid personally — such as travel, client entertainment, or office supplies.
For VAT-registered companies, the VAT element of qualifying business expenses can be reclaimed as input VAT on the next VAT return — provided a valid tax invoice is held.
Under UAE Corporate Tax rules, expenses are deductible only if wholly and exclusively incurred for business purposes and supported by documentation. Undocumented claims may be disallowed during an FTA audit.
Use a standardised claim form, require original VAT tax invoices for all claims above AED 100, set manager approval thresholds, and record all claims in your bookkeeping system in the same period the expense was incurred.
Finanshels sets up structured expense workflows, ensures VAT is correctly reclaimed, and keeps documentation audit-ready. Learn more at our bookkeeping services.
