If you are a court-appointed expert in the UAE, or a legal, accounting or engineering firm that provides expert witness services to the courts, the Federal Tax Authority (FTA) has just removed all ambiguity around your VAT position. Directive on Tax Transactions No. 1 of 2026, confirms that judicial expert services supplied in the UAE are taxable supplies, and that VAT registration is compulsory once the standard threshold is met.
For any expert listed on the Ministry of Justice roster, a local judicial authority roster, or an arbitration centre roster, this Directive is not optional guidance. It is a binding clarification of how the VAT Law already applies to your fees. Getting VAT registration for judicial experts UAE right from the outset avoids penalties, protects your court appointments, and keeps your practice compliant with the Federal Tax Authority.
This article breaks down the Directive, explains who it affects, and sets out the practical VAT compliance steps every judicial expert and law firm should take.
What Does FTA Directive No. 1 of 2026 Actually Say?
The Directive clarifies the VAT treatment of fees earned by natural or legal persons appointed by a competent UAE court to provide expert services, where that person is registered in the roster of experts with:
- The Ministry of Justice, or
- A local judicial authority, or
- An arbitration centre
The FTA has confirmed four key points:
- Taxable business activity: Services provided by a court-appointed Judicial Expert are treated as being supplied in the course of a business in the UAE, and constitute Taxable Supplies under Article 1 and Article 2 of the VAT Law (Federal Decree-Law No. 8 of 2017).
- Consideration: Any amount a Judicial Expert receives for expert services is Consideration for a supply of services, as defined under Article 1 of the VAT Law.
- Mandatory registration: Judicial Experts must comply with all legally prescribed tax obligations, including registering for VAT once the mandatory registration thresholds in Article 13 of the VAT Law and Article 7 of the VAT Executive Regulation are met, if they are not already registered.
- Government-funded fees are still taxable: Where the Consideration for expert services is paid by a Government Entity, this does not change the VAT treatment of the supply. Government funding does not exempt the fee from VAT.
Who Is Affected?
This Directive has direct implications for a wide range of professionals and firms operating across the UAE’s judicial and arbitration ecosystem:
- Forensic accountants and financial experts appointed by UAE courts
- Engineering and construction experts giving technical opinions in litigation
- Valuation experts in property, business and asset disputes
- Medical and technical experts appointed in civil or commercial cases
- Legal translators and interpreters registered on judicial rosters
- IT and cybersecurity experts appointed in digital forensics matters
- Arbitration-appointed experts working through DIAC, ADCCAC or similar centres
- Law firms and consultancies that second registered experts to court proceedings
If you or your firm bill court-ordered expert fees and are not currently VAT registered, this Directive is the clearest signal yet that the FTA expects you to review your position without delay.
Why This Directive Matters for VAT Registration
Before this Directive, some experts assumed that fees paid through a court process, or funded by a government litigant, sat outside the scope of VAT. The FTA has now closed that gap entirely. Two points deserve particular attention:
- Court appointment does not change the tax character of the fee. Whether the expert is instructed by a private litigant or a government body, the fee is Consideration for a taxable supply of services.
- The 12-month mandatory threshold still applies. Under Article 13 of the VAT Law, once taxable supplies and imports exceed AED 375,000 over the preceding 12 months (or are expected to exceed this in the next 30 days), VAT registration becomes mandatory. Judicial experts who have not tracked their court fee income against this threshold are at risk of being unregistered when they should already hold a Tax Registration Number.
Failure to register on time exposes experts to administrative penalties under Cabinet Decision No. 75 of 2023, in addition to potential FTA audit exposure on historic, unbilled VAT.
VAT Compliance Checklist for Judicial Experts
Use this checklist to assess your position against Directive No. 1 of 2026:
- Confirm whether you are listed on the Ministry of Justice roster, a local judicial authority roster, or an arbitration centre roster
- Calculate your total taxable turnover from expert fees, plus any other business activity, over the preceding 12 months
- Check whether you have crossed, or are likely to cross, the AED 375,000 mandatory registration threshold
- Review whether court fees funded by government entities have been correctly treated as taxable supplies
- If already VAT registered, confirm that judicial expert fees are being invoiced with VAT and reported correctly in your VAT returns
- If not yet registered, prepare and submit a VAT registration application through the FTA’s EmaraTax portal without delay
- Update your invoicing templates and fee notes to show VAT separately, in line with FTA tax invoice requirements
- Retain supporting documentation, including court appointment letters and roster registration, to evidence the nature of the supply in the event of an FTA review
What Happens If You Are Already Late to Register?
Some judicial experts may find, on review, that they should have registered for VAT some time ago. This is a common and manageable situation, but it needs to be addressed proactively rather than left for the FTA to identify during an audit. Depending on the facts, this may involve:
- A late VAT registration application, with an honest assessment of the effective registration date
- A review of whether a voluntary disclosure is required for historic VAT liabilities
- An assessment of penalty exposure and, where applicable, a request for reconsideration or penalty waiver
Acting early, and with proper documentation, generally produces a far better outcome than waiting for the FTA to raise the issue.
Frequently Asked Questions
Do all court-appointed experts in the UAE need to register for VAT?
Only once their taxable turnover, including judicial expert fees, exceeds the mandatory registration threshold of AED 375,000 in the preceding 12 months, or is expected to do so within the next 30 days. Below this, voluntary registration is available once turnover exceeds AED 187,500.
Does it matter if my fee is paid by a government department rather than a private party?
No. Directive No. 1 of 2026 confirms that receiving Consideration from a Government Entity does not change the VAT treatment of the supply. The fee remains taxable in the same way.
Is VAT charged on the total fee awarded by the court, or only on part of it?
VAT applies to the full Consideration received by the Judicial Expert for the expert services, in accordance with Article 1 of the VAT Law, unless a specific exemption or zero-rating provision applies to the underlying supply.
Get Expert VAT Support for Your Judicial Practice
Directive No. 1 of 2026 leaves little room for interpretation, but applying it correctly to your specific fee structure, registration history and government-funded engagements still requires careful review. Tax Gian’s VAT advisory team helps judicial experts, law firms and consultancies across the UAE assess their registration position, correct historic exposure, and stay compliant with FTA directives as they are issued.
Contact Tax Gian today for a VAT registration and compliance review designed to your judicial expert practice.
