Decree-Law on VAT in UAE and its Executive Regulations provide self-declared flow of credit in the supply-chain, from the producer to consumer. Input VAT credit is the foundation stone of Value Added Tax across the world. The term Input VAT or Input Tax has been defined under Article (1) of VAT Legislation as, Tax paid by a Person or due from him when Goods or Services are supplied to him, or when conducting an Import. The possibilities of Input VAT credit (recovery) is implied within the name of the tax itself which is “Value-Added Tax”. It is important to note that before claiming for any input VAT recovery, the eligibility of those expenses is to be validated first.
Source: gccfintax.com
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