UAE: Updated VAT guide on input tax apportionment

VAT guide on input tax apportionment on VAT and its amendments and regulations thereunder

VAT guide on input tax apportionment on VAT and its amendments and regulations thereunder

The tax authority of the United Arab Emirates (UAE) in March 2023 published an updated value added tax (VAT) guide on input tax apportionment in accordance with the UAE Federal Decree-Law No. 8 of 2017 on VAT and its amendments and the regulations thereunder.

The guide is not legally binding but is intended to provide assistance in understanding and applying the VAT legislation with regards to input tax apportionment and special methods for input tax apportionment.

The guide replaces the input tax apportionment guide published in December 2019 and provides the following new guidance:

  • Extends the scope of sectors that can apply to use the outputs-based special apportionment method and the sectoral special apportionment method
  • Clarifies the date on which the VAT registrant can apply to use a special apportionment method for the first time
  • Clarifies the effective date of application of the special method as approved by tax authority
  • Clarifies the requirements for the re-application for a special apportionment method 

Read a March 2023 report prepared by the KPMG member firm in the United Arab Emirates


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