Article 57 - Input Tax deduction

A. A Taxable Person shall be entitled to deduct Input Tax paid or payable by him in the course of carrying out his Economic Activity for the purposes of making the following Supplies:

1. Taxable Supplies, including Supplies subject to the zero rate.
2. Intra-GCC Supplies.
3. Supplies made outside the Kingdom where the related Tax on expenses would have been deductible had the Supplies been made in the Kingdom.

B. A Taxable Person shall retain the following documents:

1. Original Tax Invoices for Goods and Services supplied to him where such Tax Invoices include all the required data in accordance with the provisions of the Law and these Regulations.

2. Customs documents relating to imports he has carried out and that prove that he is the Importer of the Goods in accordance with the Customs Law.

3. Tax Invoices issued by the taxable Customer on behalf of the Supplier in accordance with the provisions of these Regulations.

4. Any other commercial documents that evidence that the Taxable Person has paid the Tax due.

C. The Taxable Person shall not deduct Input Tax in any Tax Period which falls more than five years after the end of the calendar year during which the right to deduct Input Tax arose.

D. The Taxable Person shall not be obliged to adjust Input Tax in the event that Goods supplied to him are lost, damaged or stolen. He shall have to prove the loss, damage or theft through an official record, or prove that the damage is due to the nature of the Goods themselves.