Gupta Accountants
  • HOME
  • ABOUT US
    • GUPTA ACCOUNTANTS
    • MANAGEMENT
    • UNITED ARAB EMIRATES
  • SERVICES
    • ACCOUNTING >
      • Accounting Dubai
      • Accounting AD
      • Accounting Sharjah
      • Accounting RAK
      • Accounting Fujairah
      • Accounting Ajman
      • Accounting UAQ
    • AUDIT COMPLIANCE >
      • Audit Dubai
      • Audit Sharjah
      • Audit RAK
      • Audit AD
      • Audit Ajman
      • Audit Fujairah
      • Audit UAQ
    • AUDIT INTERNAL >
      • Review Dubai
      • Review AD
      • Review Sharjah
      • Review RAK
      • Review Ajman
      • Review Fujairah
      • Review UAQ
    • VAT REGISTRATION >
      • Registration Dubai
      • Registration AD
      • Registration Sharjah
      • Registration Ajman
      • Registration Fujairah
      • Registration RAK
      • Registration UAQ
    • VAT DEREGISTRATION >
      • Deregistration Dubai
      • Deregistration AD
      • Deregistration Sharjah
      • Deregistration RAK
      • Deregistration Ajman
      • Deregistration Fujairah
      • Deregistration UAQ
    • VAT COMPLIANCE >
      • Compliance Dubai
      • Compliance AD
      • Compliance Sharjah
      • Compliance Ras Al Khaimah
      • Compliance Fujairah
      • Compliance Ajman
      • Compliance Umm Al Quwain
    • VAT CONSULTING >
      • Consulting Dubai
      • Consulting AD
      • Consulting Sharjah
      • Consulting RAK
      • Consulting Fujairah
      • Consulting Ajman
      • Consulting UAQ
    • VAT REFUND >
      • Refund Dubai
      • Refund AD
      • Refund Sharjah
      • Refund RAK
      • Refund Ajman
      • Refund Fujairah
      • Refund UAQ
    • VAT VDS >
      • VDS Dubai
      • VDS AD
      • VDS Sharjah
      • VDS RAK
      • VDS Ajman
      • VDS Fujairah
      • VDS UAQ
    • VAT AUDIT >
      • VAT Audit Dubai
      • VAT Audit AD
      • VAT Audit Sharjah
      • VAT Audit RAK
      • VAT Audit Ajman
      • VAT Audit Fujairah
      • VAT Audit UAQ
    • ESR COMPLIANCE >
      • ESR Dubai
      • ESR Sharjah
      • ESR RAK
      • ESR AD
      • ESR Ajman
      • ESR Fujairah
      • ESR UAQ
    • UBO COMPLIANCE
  • BLOG
  • CONTACT
  • RESOURCES
    • VALUE ADDED TAX - UAE >
      • VAT in UAE >
        • Introduction to VAT Laws in UAE
        • Frequently Used Terms in Indirect Tax System
      • VAT Registration >
        • VAT Registration in UAE
        • Who should register under VAT
        • How to apply for VAT registration in UAE
        • Tax Registration Number (TRN)
        • How to check TRN validity in UAE
        • VAT registration Deadlines in UAE
        • VAT Group Registration
        • VAT Registration Threshold Calculation in UAE
      • VAT De-Registration >
        • How to de-register under VAT in UAE
      • Recovery of Input Tax >
        • Input Tax Recovery under VAT in UAE
        • Supplies not eligible for input tax recovery under VAT in UAE
        • Supplies not eligible for input tax recovery under VAT in UAE
        • What is Capital Asset Scheme in UAE VAT ?
        • Input VAT Adjustments under Capital Assets Scheme
      • Place of Supply >
        • Place of supply of goods under VAT in UAE
        • Place of supply in case of export of goods
        • Place of supply of specific goods
        • Place of supply of services
        • Place of supply of services in special cases
        • Place of Supply of Telecommunication and Electronic Services
        • Place of Supply of Services Related to Real Estate
        • Place of Supply of Certain Transport Services

What is Recoverable Input VAT ?

7/7/2018

0 Comments

 
Definition: "Input VAT is ​amount of Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import."

"Recoverable input VAT is amount of tax that were paid and can be repaid by the Authority to the Taxpayer pursuant to the provisions of the Decree-Law.
Picture
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. 
​
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.
​
Gupta Accountants competent team as Vat Consultants in Dubai, provides supports at all the stages of the Value Added Tax on good and services in UAE to local  companies, free zone based companies  and designated zone based companies of Dubai, Abu Dhabi Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah.
​  
VAT | REGISTRATION | COMPLIANCE | AUDIT | REFUND | CONSULTING ​​​​​
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Picture

    Author

    Ramesh Kumar Gupta is a young and dynamic Chartered Accountant and has 21 years of experience in assurance, accounting, audit and business management.  He is a member of the Institute of Chartered Accountants of India (ICAI).  He is the Managing Partner of Gupta Accountants an accounting and advisory firm in Dubai UAE

    Archives

    October 2020
    June 2020
    March 2020
    December 2019
    July 2018
    February 2018
    January 2018
    December 2017
    October 2017
    July 2017
    March 2017

Picture
HEAD OFFICE 
PO Box 123 383 Dubai UAE 
T: +971 4 396 7982 
M: +971 55 9893299
​E:  info@guptaaccountants.com 

We provide our periodic compliance services, like  FTA VAT  Return, FTA VAT Refund, FTA VDS Return, FTA Registration & Deregistration, Annual ESR Return & maintenance of statuary registers of UBO in UAE to the all the entities registered with  ​Ministry of Economy, Dubai Aviation City, Dubai South,  Hamriyah Free Zone Authority (HFZA),  Media Free Zone (Abu Dhabi), Central Bank of the UAE, Jebel Ali Free Zone (JAFZA) DP World,  Ajman Free Zone Authority, Abu Dhabi Airports Free Zone, Insurance Authority, Dubai World Trade center,  Ajman Media Free Zone Autority,  MASDAR, Security and Commodities Authority,  International Humanitarian City (IHC) ,Ras Al Khaimah International Corporate Centre (RAK ICC), Abu Dhabi Global Market (ADGM), Dubai Airport Free Zone , TECOM (Dubai Development Authority),  Ras Al Khaimah Economic Zone (RAKEZ), Abu Dhabi Ports, Dubai Healthcare City Authority, Dubai Multi Commodities Centre (DMCC), Fujairah Free Zone, Fujairah Creative City,  Dubai International Financial Centre (DIFC) Dubai Silicon Oasis Umm Al Quwain Free Zone (UAQ) Sharjah publishing city, Meydan Free zone, Sharjah Airport (SAIF) Zone, Khalifa Industrial Zone Abu Dhabi (KIZAD), Sharjah media city, International free zone authority Fujairah, RAK Maritime City, Sharjah Healthcare City, The Sharjah Research, Technology and Innovation Park  in addition to the assistance in the compliance with the annual audit requirements  and books of accounts. 
PRIVACY  WHISTLEBLOWER    DISCLAIMER   MEDIA  TRANSPARENCY REPORT
  • HOME
  • ABOUT US
    • GUPTA ACCOUNTANTS
    • MANAGEMENT
    • UNITED ARAB EMIRATES
  • SERVICES
    • ACCOUNTING >
      • Accounting Dubai
      • Accounting AD
      • Accounting Sharjah
      • Accounting RAK
      • Accounting Fujairah
      • Accounting Ajman
      • Accounting UAQ
    • AUDIT COMPLIANCE >
      • Audit Dubai
      • Audit Sharjah
      • Audit RAK
      • Audit AD
      • Audit Ajman
      • Audit Fujairah
      • Audit UAQ
    • AUDIT INTERNAL >
      • Review Dubai
      • Review AD
      • Review Sharjah
      • Review RAK
      • Review Ajman
      • Review Fujairah
      • Review UAQ
    • VAT REGISTRATION >
      • Registration Dubai
      • Registration AD
      • Registration Sharjah
      • Registration Ajman
      • Registration Fujairah
      • Registration RAK
      • Registration UAQ
    • VAT DEREGISTRATION >
      • Deregistration Dubai
      • Deregistration AD
      • Deregistration Sharjah
      • Deregistration RAK
      • Deregistration Ajman
      • Deregistration Fujairah
      • Deregistration UAQ
    • VAT COMPLIANCE >
      • Compliance Dubai
      • Compliance AD
      • Compliance Sharjah
      • Compliance Ras Al Khaimah
      • Compliance Fujairah
      • Compliance Ajman
      • Compliance Umm Al Quwain
    • VAT CONSULTING >
      • Consulting Dubai
      • Consulting AD
      • Consulting Sharjah
      • Consulting RAK
      • Consulting Fujairah
      • Consulting Ajman
      • Consulting UAQ
    • VAT REFUND >
      • Refund Dubai
      • Refund AD
      • Refund Sharjah
      • Refund RAK
      • Refund Ajman
      • Refund Fujairah
      • Refund UAQ
    • VAT VDS >
      • VDS Dubai
      • VDS AD
      • VDS Sharjah
      • VDS RAK
      • VDS Ajman
      • VDS Fujairah
      • VDS UAQ
    • VAT AUDIT >
      • VAT Audit Dubai
      • VAT Audit AD
      • VAT Audit Sharjah
      • VAT Audit RAK
      • VAT Audit Ajman
      • VAT Audit Fujairah
      • VAT Audit UAQ
    • ESR COMPLIANCE >
      • ESR Dubai
      • ESR Sharjah
      • ESR RAK
      • ESR AD
      • ESR Ajman
      • ESR Fujairah
      • ESR UAQ
    • UBO COMPLIANCE
  • BLOG
  • CONTACT
  • RESOURCES
    • VALUE ADDED TAX - UAE >
      • VAT in UAE >
        • Introduction to VAT Laws in UAE
        • Frequently Used Terms in Indirect Tax System
      • VAT Registration >
        • VAT Registration in UAE
        • Who should register under VAT
        • How to apply for VAT registration in UAE
        • Tax Registration Number (TRN)
        • How to check TRN validity in UAE
        • VAT registration Deadlines in UAE
        • VAT Group Registration
        • VAT Registration Threshold Calculation in UAE
      • VAT De-Registration >
        • How to de-register under VAT in UAE
      • Recovery of Input Tax >
        • Input Tax Recovery under VAT in UAE
        • Supplies not eligible for input tax recovery under VAT in UAE
        • Supplies not eligible for input tax recovery under VAT in UAE
        • What is Capital Asset Scheme in UAE VAT ?
        • Input VAT Adjustments under Capital Assets Scheme
      • Place of Supply >
        • Place of supply of goods under VAT in UAE
        • Place of supply in case of export of goods
        • Place of supply of specific goods
        • Place of supply of services
        • Place of supply of services in special cases
        • Place of Supply of Telecommunication and Electronic Services
        • Place of Supply of Services Related to Real Estate
        • Place of Supply of Certain Transport Services