All recoverable input tax is input tax but not all input tax is recoverable input tax under UAE VAT Law. 

Example:  5% of tax paid over and above the value of the purchase made by a registered business/ person under UAE VAT. 

​Input tax is the tax paid by a person on purchases or inward supplies. A major element of VAT in UAE is the provision to recover the tax paid on inputs. This means that a person can reduce the value of input tax eligible for recovery from the tax payable and only pay the balance amount as tax. This ensures that tax is paid only on the value added at each stage in the supply chain. Hence, the amount of input tax eligible for recovery plays an important role in the cash flow and operating expenses under VAT.

How much of the input tax paid by a registered business/ person would be recoverable depends upon many factors. 

A. Input tax paid on expenses related to taxable supply (All input VAT is Recoverable input VAT in the vat return of the registered business/ person. 
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B. Input tax paid on expenses related to non-taxable/exempt supply ( All input VAT may not be Recoverable input VAT in the vat return of registered business/ person.)

C. Input tax paid on expenses related to both taxable and non-taxable/exempt supply ( % of total input VAT may be Recoverable input VAT in the vat return of registered business/ person.)
Recoverable on a proportionate basis by the registered VAT person.
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It should be noted that even if there was no business transactions undertaken during a particular tax period by a registered business/ taxable person, still it is mandatory to file vat returns. In such cases the return would be a nil return. 

Non filing of vat returns by a registered business/ taxable person would attract administrative penalties as stipulated under UAE VAT laws. 

UAE VAT Return should be prepared and submitted in AED (Arab Emirates Dirham). 

Transaction of purchases, sales, income and expenses in foreign currencies should be converted in AED based on the prevailing exchange rates before they are considered in the VAT Return preparation and calculations. 

The rate should be considered as on the date of the invoice. 

​In order to convert foreign currency to AED values, it is required to use the currency rates prevailing on the date of supply.  The currency rates are published each week by the UAE Central Bank specially for VAT purposes. 

Link to Central Bank of UAE  www.centralbank.ae/en/index.php?option=com_jumi&fileid=61&Itemid=59

It should be noted if the due date for the submission of the VAT Return and the corresponding payment falls on a weekend or an official public holiday in the UAE, the deadline for filing the VAT Return or making payment of net vat dues is extended to the first business day thereafter.
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Example, if your tax period ends on the 30th June 2018, the VAT Return 201 and payment of net vat dues if any must be settled no later than the 28th of July 2018. However, as the 28th of July  2018 is a Saturday, the VAT return shall be due on July 29th, 2018.

Delay in submission of VAT Return 201 attracts penalty of AED 1,000/- for the first time and penalty of AED 2,000/- for the second time . 

Delay in settlement of the net due vat attracts penalty of 2% for first six day from due date, 4% till 30th day from due date and 1% for each day after lapse of 30days from the due date up to 300th day or date of settlement whichever is earlier/less.