GTL Summary:

Article 56 stipulates the conditions for recovering input tax incurred prior to tax registration. A registrant may claim this tax on their first tax return, applicable to goods and services supplied to, or imported by, them before the registration date. The core requirement is that these inputs must be subsequently used to make taxable supplies that permit tax recovery. The article explicitly disallows recovery in several instances, including when goods are used for non-taxable supplies, for the depreciated portion of capital assets, for services received more than five years prior, or for goods moved to another state before registration.

Document Type: Tax Law Article
Law: VAT (FDL No 8 of 2017, as amended)
Article Number: 56
Country: 🇦🇪 UAE
Location: Title 7 - Calculation of Due Tax › Chapter 1 - Due Tax for a Tax Period
Order: 56
Last updated at: 2025-12-26 14:13:51 UTC

Title 7 - Calculation of Due Tax

Chapter 1 - Due Tax for a Tax Period

Article 56
Input Tax Paid before Tax Registration

  1. A Registrant may recover recoverable Input Tax incurred before Tax Registration on the Tax Return submitted for the first Tax Period following Tax Registration, which has been paid for any of the following:

    1. Supply of Goods and Services made to him prior to the date of Tax Registration.

    2. Import of Goods by him prior to the date of Tax Registration.

    Provided that these Goods and Services were used to make supplies that give the right to Input Tax recovery after Tax Registration.

  2. As an exception to the provisions of Clause 1 of this Article, Input Tax may not be recovered in any of the following instances:

    1. The receipt of Goods and Services for purposes other than making Taxable Supplies.

    2. Input Tax related to the part of the Capital Assets that depreciated before the date of Tax Registration.

    3. If the Services were received more than 5 years prior to the date of Tax Registration.

    4. Where a Person has moved the Goods to another Implementing State prior to the Tax Registration in the State.

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Article 55 - Recovery of Recoverable Input Tax in the Tax Period
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