Updated 11 October: implementation has begun

Most amendments in Cabinet Decision No. 149 of 2026 took effect on 1 October. They address operating rules including employee-benefit input tax, purchase-price treatment, capital assets and other VAT provisions.

Article 3(2) separately defers the Article 55 apportionment amendments to the first Tax year commencing after 1 October 2027. They should not be applied simply because the other amendments are now effective.

Decision No. 17 supplies employee-expense conditions

FTA Decision No. 17 of 2026, issued 9 September and effective 1 October, now sets conditions for the contractual or documented-policy employee-expense route. It covers specified transport, remote-location food, accommodation, communications and parking cases.

Each category has its own conditions. Examples include limits on cash alternatives, work-related use, appropriate accommodation and documented monitoring. Temporary accommodation for new employees is limited to 30 days. The FTA-hosted English text is labelled an unofficial translation.

Review actual arrangements

T&M analysis: HR policy wording and a VAT invoice do not by themselves establish recovery. Map each arrangement to the relevant statutory route and the conditions that apply. Ordinary remuneration, personal use and work-driven operational provision can require different treatment.

Evidence should connect the policy, work requirement, invoice and actual use. Review accommodation particularly carefully: the labour-law route in Article 53 and the contractual-policy cases in Decision No. 17 must not be collapsed into a blanket allowance.