UAE Issues VAT Guidance on the Time-frame for Recovering Input Tax

The UAE Federal Tax Authority (FTA) has published a public clarification on the time-frame for the recovery of input value added tax (VAT). The public clarification provides in summary that input tax must be recovered in the first tax period in which two conditions are satisfied:

• the tax invoice is received; and
• an intention to make the payment of consideration of the supply before the expiration of six months after the agreed date of payment is formed.

Upon receipt of a tax invoice, a tax…