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VAT on Sale or Disposal of motor vehicle held as business asset in UAE

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

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