Input VAT is the Value Added Tax a business pays on its purchases and expenses. UAE VAT-registered businesses can reclaim input VAT as a credit against output VAT collected from customers — remitting only the net amount to the FTA.
Output VAT is the 5% VAT charged on sales. Input VAT is the 5% VAT paid on purchases. The difference appears on the VAT return as either tax payable (output > input) or a refund due (input > output).
To reclaim, a business must: hold a valid tax invoice from a VAT-registered supplier, use the purchase for a taxable supply, be VAT-registered, and claim within the statutory time limit. Input VAT on entertainment, personal use, and exempt supply activities is blocked.
Finanshels reviews all purchase invoices to claim the maximum legitimate input VAT while excluding blocked amounts. Our VAT filing service and VAT consultancy keep your VAT position optimised and compliant.
