Tax & VAT
What is Non-Recoverable Input VAT?
Input VAT that a business cannot reclaim because it does not relate to taxable supplies or falls within categories blocked by UAE VAT law, such as certain entertainment and some motor vehicle costs. Non-recoverable VAT becomes part of the cost of the expense. Apportionment may be needed where costs relate to both taxable and exempt activities. Confirm what is blocked with the FTA.