The Federal Tax Authority (FTA) of the Emirate has released VAT Public Clarification VATP028 on 6 December 2012 providing guidance for recovery of input VAT relating to mobile phones, airtime (call minutes), and data packages made available to employees for business use. The guidance clarifies that recovery of input VAT on mobile phone expenses is only for companies with a strict business-use policy in place. The taxpayer should also actively comply with the policy.
Source: GVC
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