Good explanation. Can I ask is it correct to create a seperate GL acccount for irrecoverable input vat? If yes, where will you categorize it in the P&L statement. thanks
Well, it is ok to do so if the management wants to see the amount of VAT not recovered. However, the right way is to directly expense the VAT in the respective expense ledger the transaction is relating to. Hope this helps. -MSI Team
Most of them are listed in this video. It's hard to create a general list for all types of businesses. Best to review each business independently. -MSI Team
Hi. We had imports of goods into UAE in 2022. We were not registered with UAE VAT at that time. Now we are registered with UAE vat. Can we claim input of vat paid in 2022 against imports now?
Hii Our company filed input vat in 2018 which is not claimable ( eg : vat on medical insurance for employee family members) Now i noticed the same, and im in charge to claim the input vat. The mistake was done by the former accountant. What i can do now?
Hi Habeeb, If the error is above AED 10,000 you must file a voluntary disclosure. If below then you may adjust this error in the next return. -MSI Team
How can we calculate the vat only out put vat we have to consider or we need to take input vat on repair and maintenance and spare parts purchase like this kindly explain
If you are able to prove that it is purely used for business purposes, and no personal use, then it can be claimed. Normally very difficult to prove this. -MSI Team
hello sir, actually i have some expenses like staff food expenses and staff water expenses and company car passing expenses and taxi charge paid to the employee and etc can i claim vat return on it.
As long as they are not material and in the normal course of providing business, they can be claimed. However we recommend our clients not to claim this as normally it is not a material figure, and it is difficult to justify that personal expenses are not claimed. -MSI Team
For Etisalat office telephone and internet expenses is the VAT fully recoverable. My previous company consultant had advised to take only 50% of the input VAT. Can you please clarify on this.
If the expense is fully for business purposes it is recoverable. However, there may be some cases where Simcard given to the team may be used for personal purposes and the company does not have a proper policy to control the same. In such a case we recommend not to claim.
Sir my owner has incur some personal expenses.. He wants input tax recover from FTA Cloths or other grocery, hospital bills he incur for himself and his family He needs Writtle proof for non recoverable tax
Thank you for your question. Sure you can download all the VAT returns. There is a view button next to each return. Once you click that a download option will be available. -MSI Team
@@hadipatel5344 Well this really depends. For example, if the company in the designated zone is providing services locally or internationally, this service is taxable. Since the income is taxable the relevant expenses are allowable to recover as well.
We paid custom duty to clearance agency.and paid vat to auction for buying machine against invoice.but now showing same in fta portal box 6. Not what we do.this is double vat payment
Dear Sir, after registration, if the company could not achieve 375 k turnover so what to do? any penalty? and before VAT registration if the paid already VAT on some expenses so how it can be claimed??
Assuming you are registering on the basis of the expected 30 days, after registering you realized you dint achieve all the sales? You will need to deregister then. Expenses before registration can be claimed in the first return after registration. -MSI Team