Claim of Input Tax Paid before Tax Registration :
A Registrant may recover Recoverable Tax incurred before Tax effective date of Registration on the Tax Return submitted for the first Tax Period following Tax Registration, which has been paid for any of the following listed cases only if these Goods and Services were used to make supplies that give the right to Input Tax recovery upon Tax Registration.
a. Supply of Goods and Services made to him prior to the effective date of Tax Registration.
b. Import of Goods by him prior to the date of effective date of Tax Registration.
But Input Tax paid prior to the date of effective date of Tax Registration may not be recovered in any of the following specified cases
a. The receipt of Goods and Services for purposes other than making Taxable Supplies.
b. Input Tax related to the part of the Capital Assets that depreciated before the date of Tax Registration.
c. If the Services were received more than five years prior to the date of Tax Registration.
d. Where a Person has moved the Goods to another Implementing State prior to the Tax Registration in the State
A Registrant may recover Recoverable Tax incurred before Tax effective date of Registration on the Tax Return submitted for the first Tax Period following Tax Registration, which has been paid for any of the following listed cases only if these Goods and Services were used to make supplies that give the right to Input Tax recovery upon Tax Registration.
a. Supply of Goods and Services made to him prior to the effective date of Tax Registration.
b. Import of Goods by him prior to the date of effective date of Tax Registration.
But Input Tax paid prior to the date of effective date of Tax Registration may not be recovered in any of the following specified cases
a. The receipt of Goods and Services for purposes other than making Taxable Supplies.
b. Input Tax related to the part of the Capital Assets that depreciated before the date of Tax Registration.
c. If the Services were received more than five years prior to the date of Tax Registration.
d. Where a Person has moved the Goods to another Implementing State prior to the Tax Registration in the State
Important concepts in relation to Supplies not eligible for input tax recovery under UAE VAT:
Who is a Registrant ?
The Taxable Person who has been issued with a TRN (Tax Registration Number) by the Federal Tax Authority in UAE.
What is First Tax Period ?
First tax period is a specified time frame, for which Payable Tax shall be calculated and paid under UAE Value Added Tax Law and regulations made there under for the first time only by for the new registrants under Vat tax law. First tax period could range from one month to 3 months. First tax period could be of more or less period as compared to succeeding tax periods.
What is Input Tax ?
Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import as specified under the UAE VAT Law and rules & regulations made the there under from time to time.
What is Capital Assets Scheme ?
Scheme whereby the initially recovered Input Tax is adjusted based on the actual use during a specific period.
What is an Implementing States ?
The GCC States that are implementing a Tax law pursuant to an issued legislation.
What is Taxable Supply ?
A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supplies.
What is Exempt Supply ?
A supply of Goods or Services for Consideration while conducting Business in the State, where no Tax is due and no Input Tax may be recovered except as specified under the UAE VAT Law and rules & regulations made the there under from time to time.
Who is a supplier ?
A supplier is a person or business that provides a product or service to another person or business.
What is consideration ?
All that is received or expected to be received for the supply of Goods or Services, whether in money or other acceptable forms of payment.
What is business ?
Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, service or excavation activities or anything related to the use of tangible or intangible properties.
Who is Taxable Person ?
Any Person registered or obligated to register for Tax purposes under UAE VAT Law.
What is Tax Period ?
A specific period of time for which the Payable Tax shall be calculated and paid.
What is Goods ?
Physical property that can be supplied including but not limited to real estate, water, and all forms of energy as specified in this Decision.
What is Services ?
Anything that can be supplied other than Goods.
Who is a Registrant ?
The Taxable Person who has been issued with a TRN (Tax Registration Number) by the Federal Tax Authority in UAE.
What is First Tax Period ?
First tax period is a specified time frame, for which Payable Tax shall be calculated and paid under UAE Value Added Tax Law and regulations made there under for the first time only by for the new registrants under Vat tax law. First tax period could range from one month to 3 months. First tax period could be of more or less period as compared to succeeding tax periods.
What is Input Tax ?
Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import as specified under the UAE VAT Law and rules & regulations made the there under from time to time.
What is Capital Assets Scheme ?
Scheme whereby the initially recovered Input Tax is adjusted based on the actual use during a specific period.
What is an Implementing States ?
The GCC States that are implementing a Tax law pursuant to an issued legislation.
What is Taxable Supply ?
A supply of Goods or Services for a Consideration by a Person conducting Business in the State, and does not include Exempt Supplies.
What is Exempt Supply ?
A supply of Goods or Services for Consideration while conducting Business in the State, where no Tax is due and no Input Tax may be recovered except as specified under the UAE VAT Law and rules & regulations made the there under from time to time.
Who is a supplier ?
A supplier is a person or business that provides a product or service to another person or business.
What is consideration ?
All that is received or expected to be received for the supply of Goods or Services, whether in money or other acceptable forms of payment.
What is business ?
Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, service or excavation activities or anything related to the use of tangible or intangible properties.
Who is Taxable Person ?
Any Person registered or obligated to register for Tax purposes under UAE VAT Law.
What is Tax Period ?
A specific period of time for which the Payable Tax shall be calculated and paid.
What is Goods ?
Physical property that can be supplied including but not limited to real estate, water, and all forms of energy as specified in this Decision.
What is Services ?
Anything that can be supplied other than Goods.
