Under the UAE VAT Law, it is the taxpayer’s responsibility to ensure that the VAT computed, accounted and documentation are in accordance with UAE VAT Laws. To know how you can claim your VAT expenses, first let us understand who can claim input tax.
A person who has registered for VAT is entitled to recover the tax that is incurred on the purchase of goods and services, which are then used to make taxable supplies.
What are the circumstances in which companies can claim the input tax?
If businesses are registered under VAT – they can file for a refund. However, the end consumer cannot claim any refunds)
VAT should have been properly and correctly charged.
Businesses should be able to produce the proper documentation to show that they have rightfully paid the VAT.
The claims need to be filed within 6 months of the supply date, on the amount paid.
If your company’s VAT accounts are too detailed and if you need assistance, it is best to indulge in VAT consultancy services in UAE, to ensure a smooth and seamless process for your VAT claims, ensuring there are no discrepancies in your accounting methods.
There are also certain exceptions when it comes to VAT claims, and following are a couple of them:
If the goods and services on which you paid VAT, are used for the purpose of making non-taxable supplies – you cannot recover the VAT paid on those goods and services.
If the input tax is related to the capital assets that depreciated before your tax registration, then you cannot claim to the extent the assets have depreciated.
If the services have been received over 5 years prior to the tax registration date – the input VAT cannot be claimed. However, this is only applicable for services, not goods.
Before registering for tax, if you transferred the goods to another GCC country – you cannot make refund claims.
If you’re tired of running helter-skelter for your tax refunds, reach out to VAT consultancy experts in the UAE, TRC Pamco – and they can help you rightfully file your claims.
