Input Tax Paid before Tax Registration

azmy adelazmy adel    26 March 2020
Input Tax Paid before Tax Registration

A Registrant may recover Recoverable Tax incurred before Tax Registration on the Tax Return submitted for the first Tax Period following Tax Registration, which has been paid for any of the following:

a. Supply of Goods and Services made to him prior to the date of Tax Registration. 

b. Import of Goods by him prior to the date of Tax Registration.
 

Provided that these Goods and Services were used to make supplies that give the right to Input Tax recovery upon Tax Registration.

As an exception to the provisions of Clause (1) of this Article, Input Tax may not be recovered in any of the following instances: 

  1.  The receipt of Goods and Services for purposes other than making Taxable Supplies.
  2.  Input Tax related to the part of the Capital Assets that depreciated before the date of Tax Registration. 
  3.  If the Services were received more than five years prior to the date of Tax Registration. 
  4.  Where a Person has moved the Goods to another Implementing State prior to the Tax Registration in the State.

Azmi A. Elgabour / Global Tax Practitioner , Tax Agent / +971 / 501235918

Disclaimer: Content posted is for informational & knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.

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