The FTA has published a new Public Clarification on Performing the Function of Director on a Board of Directors by a Natural person

With effect from 1 January 2023, the performance of a Director’s function, by a natural person and for a remuneration (monetary or in kind), on a Board of Directors of any government or private sector entity, shall not be considered to be a supply of services for VAT purposes.

Prior to 1 January 2023, the general rule was that services provided by Directors, whether the function was performed by a natural person or a legal person, were considered to be services for VAT purposes.