New Value Added Tax (VAT) the Federal Tax Authority (FTA) has published in Public Clarifications on the taxability of recharges commonly known as the recovery of cost. VAT recovery occurs when a taxpayer offsets the VAT paid to its vendors from the total VAT collected from its customers. One of the reasons behind this is the fact that the term recharge is not defined in VAT law, but this gained significant importance from the point of view of VAT consultants in Dubai.
Source: gccfintax.com
