GTL Summary:

Article 57 outlines the provisions for the recovery of Input Tax by Government Entities and Charities. A Cabinet Decision, issued upon the Minister's recommendation, determines which specific entities are entitled to full recovery. For Government Entities, this applies to Input Tax paid for sovereign activities. For Charities, it pertains to Input Tax paid for their Relevant Charitable Activities. The article establishes key exceptions, making tax non-recoverable if it is excluded under the Executive Regulation of the Decree-Law, or if it was paid for goods and services used to make Exempt Supplies. This provision was updated by Federal Decree-Law No. 18 of 2022.

Document Type: Tax Law Article
Law: VAT (FDL No 8 of 2017, as amended)
Article Number: 57
Country: 🇦🇪 UAE
Location: Title 7 - Calculation of Due Tax › Chapter 1 - Due Tax for a Tax Period
Order: 57
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 57
Recovery of Tax by Government Entities and Charities[25]

  1. [Without prejudice to the general provisions of Input Tax recovery, Government Entities and Charities entitled to recover the full amount of Input Tax shall be determined in a Cabinet Decision issued upon the recommendation of the Minister, according to the following:

    1. Input Tax paid by the Government Entity for the purposes of its sovereign activities.

    2. Input Tax paid by the Charity for the purposes of its Relevant Charitable Activity.

  2. As an exception to the provisions of Clause 1 of this Article, the following shall be excluded from recovery:

    1. Tax excluded from recovery as specified in the Executive Regulation of this Decree-Law.

    2. Tax paid for Goods and Services used to perform Exempt Supplies. ] [G42]

Footnotes

[25]Article amended as per Federal Decree-Law No. 18 of 2022.

GTL Notes

[G42] Article amended by Federal Decree-Law No. 18 of 2022 effective from 1 January 2023. This replaces the following text:
'A Cabinet Decision shall be issued at the suggestion of the Minsiter determining the Government Entities and Charities entitled to recover the full amount of Input tax paid by them, except for:
1. Tax excluded from recovery as specified in the Executive Regulation of this Decree-Law.
2. Tax paid for Goods and Services used to perform exempt supplies.'

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Article 56 - Input Tax Paid before Tax Registration
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Article 58 - Calculating the Input Tax that may be Recovered
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