If there are quarterly tax periods, the tax year shall be as follows:

1. If a taxable person's tax period ends on 31 January and quarterly thereafter, the taxable person's tax year shall end on 31 January of every year.

2. If a taxable person's tax period ends on last day of February and quarterly thereafter, the taxable person's tax year shall end on the last day of February of every year.

3. If a taxable person's tax period ends on 31 March and quarterly thereafter, the taxable person's tax year shall end on 31 March of every year.

If the tax period is (12) twelve months, the tax year shall be the same as the tax period.

If the tax period is a calendar month, the tax year shall be the total tax periods in the year ending on last day of the calendar year.

[Notwithstanding Clauses (1), (2) and (3) of this Article, the tax year ends in the following cases:

1. If the taxable person cancels its tax registration, the tax year ends on the last day the person was subject to tax.

2. If a member joins a tax group, the tax year ends on the last day before the member joins the tax group.

3. If a member leaves a tax group, the tax year ends on the last day the member is part of the tax group.] ^[G58]

The Authority shall determine the tax year in any other cases not covered by [Clauses (1), (2), (3), and (4)] ^[G59]of this Article.

To ascertain the recoverable input tax, the taxable person shall allocate the input tax as follows:

1. The full input tax related to the supplies specified in Clause (1) of Article 54 [and Article 57]^[G60]of the Decree-Law made by the taxable person may be recovered.

2. Any input tax [that cannot be recovered under Article 53 of this Resolution] ^[G61], or that is not associated with the supplies outlined in Clause (1) of Article 54 [and Article 57]^[G62]of the Decree-Law, may not be recovered by the taxable person unless the provisions [of the Decree-Law and this Resolution] ^[G63]state otherwise.

3. Input tax that is partially related to the supplies specified in Clause (1) ofArticle 54 [and Article 57]^[G64]of the Decree-Law, and partially to other supplies, shall be calculated according to the mechanism outlined in [Clause (7)] ^[G65]of this Article. Only the amount related to the supplies stipulated in Clause (1) of Article 54 [and Article 57]^[G66]of the Decree-Law are refundable.

The input tax that could be refundable shall be calculated as follows:

1. The taxable person shall calculate the percentage of refundable input tax in accordance with [Clause 1 of] ^[G67]Article 54 [and Article 57]^[G68]of the Decree-Law to the total of [input tax] ^[G69]for the tax period.

2. The percentage calculated under paragraph (a) of this Clause shall be rounded to the nearest whole number.

3. The percentage calculated under paragraph (b) of this Clause shall be multiplied by the amount of the input tax referred to in Paragraph (c) of Clause (6) of this Article to establish the refundable portion of such input tax.

The calculations referred to above shall be undertaken in respect of each tax period where input tax incurred relates to making exempted supplies or to activities that are not in the course of the business.

At the end of each tax year, the taxable person shall undertake the calculation mentioned in [Clause (7)] ^[G70]of this Article, but in respect of the entire tax year just ended in the first tax period of its subsequent tax year.

The input tax properly refundable for the tax year just ended as described in [Clause (9)] ^[G71]of this Article shall be compared to the input tax amount actually recovered in all the tax periods making up the tax year, and an adjustment to the refundable tax shall be made in the tax period mentioned in [Clause (9)] ^[G72]of this Article.

If the difference in any tax year between the refundable tax as calculated under this Article and the refundable tax which would arise if a calculation is made which reflects the actual use of the goods and services to which the input tax relates, exceeds AED 250,000 (two hundred fifty thousand dirhams), the taxable person shall, in the tax period referred to in [Clause (9)] ^[G73]of this Article, make an adjustment to the input tax in respect of the difference.

[For the purposes of Clauses (4) and (11) of this Article, in cases where the tax year is less than twelve (12) months, the amount specified in Clause (11) shall be adjusted proportionally to reflect the duration of that tax period.] ^[G74]

If the application of the calculations mentioned in this Article gives a result which the taxable person considers would not reflect the actual extent to which the input tax relates to making taxable supplies, he may apply to the Authority to authorize the use of an alternative basis of calculation based on the list of accepted mechanisms issued by the Authority. [Moreover, the Authority may oblige the taxable person to submit such application.] ^[G75]

The Authority may accept that the taxable person may use an alternative mechanism of apportionment of input tax than that referred to in this Article from such future date and as per any further conditions as determined by the Authority.

The taxable person may only apply to change the alternative mechanism with effect from at least two tax years after he was first approved to use it.

[Without prejudice to Clauses (9), (10), and (11) of this Article, the taxable person may submit an application to the Authority for approval to apply a specific recovery percentage for calculating the refundable input tax in any tax period, based on the recovery percentage from the previous tax year.] ^[G76]

The Authority may request such information from the taxable person as it believes is necessary to make a decision regarding application made under [Clause (13) or (16)] ^[G77]of this Article.

If the Authority accepts the application made under [Clause (13) or (16)] ^[G78]of this Article, it shall issue a notification to the taxable person setting out the alternative calculation method and conditions for using of such method.