Fixed Establishments in the UAE: Understanding the Practical Reality Behind VAT

Determining whether a foreign business has a Fixed Establishment (FE) in the UAE is one of the most important and often misunderstood aspects of the UAE VAT regime. While the legislation provides a legal framework, its practical application depends on the substance of a business's operations, including the presence of personnel, operational resources, and decision-making functions within the UAE. In this article, Ouarda El Ghannouti, Director at Baker Tilly UAE, examines the key considerations businesses should assess to better understand their VAT obligations and manage potential compliance risks.