VAT

Dear all, the query pertains to recovery of VAT on import. If in earlier tax periods, VAT on import was not recovered in Box 10 due to missing supporting documents, can such VAT be claimed in Box 10 beyond 2 subsequent tax periods if subsequently the documents are arranged? The VAT amount is less than AED 10,000.

Replies
SAJITH NAIR24/04/2022 13:52:16

Recovery of input VAT under RCM is subject to normal input recovery rules so the time limit of 2 tax periods would apply to VAT on imports as well.

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Suman Sadhwani25/04/2022 10:42:42

Hi @Sajith Nair, thank you for quick revert but then when input VAT which is claimed within 2 tax periods in Box 10 then such VAT is more than VAT booked as output VAT RCM in Box 3,6 & 7. Is that in line with FTA guidelines?

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SAJITH NAIR28/04/2022 10:28:41

The FTA guidance does not say the VAT in Box 10 should be equal to or below the total of VAT in Box 3, 6 and 7, to my understanding.

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Suman Sadhwani28/04/2022 11:45:45

Agreed that FTA does not say it explicitly but that is a possible error which FTA may question into. Please let me know if you have encountered similar situation

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SAJITH NAIR06/05/2022 16:56:52

I have not encountered practical issues however considering that input VAT recovery against output disclosure under RCM is subject to normal input recovery rules it should be possible. matching of totals in the VAT return form is merely a technicality that should not override the Law.

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