VAT on Purchase of Motor Vehicle for Business Purpose
Article 53 of the Executive Regulation which deals with Non-recoverable input tax cases, states that Input Tax is not recoverable where a motor vehicle was purchased, rented or leased for use in the Business and is available for personal use by any Person.
The word ‘motor vehicle’ means a road vehicle which is designed or adapted for the conveyance of not more than 10 people including the driver. A motor vehicle excludes a truck, forklift, hoist, or other similar vehicle.
Source GCCFintax
Latest Posts in "United Arab Emirates"
- UAE Simplifies VAT Recovery Documentation for Imported Services Under Reverse-Charge Mechanism
- Comprehensive Guide to UAE Free-Zone Business Compliance Under Ministerial Decision No. 229 of 2025
- UAE E-Invoicing Mandate for VAT Businesses Begins July 2026 with Phased Rollout
- RTC Webinar: UAE e-Invoicing: A Corporate Perspective on the Mandate and Opportunities, 25 September | 4 – 5 PM (Dubai)
- FTA Publishes Guidance EXTP012 on Shifting to Tiered Volumetric Excise Tax for Sweetened Drinks