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How to Recover Input Tax for Charities in the United Arab Emirates

This guide provides information on how charities in the United Arab Emirates (UAE) can recover input tax. Input tax is the value-added tax (VAT) that a business pays on its purchases of goods and services. Charities in the UAE are exempt from VAT, but they can still recover input tax on certain expenses.

Who is eligible to recover input tax?

To be eligible to recover input tax, a charity must be registered with the Federal Tax Authority (FTA) and must meet the following criteria:

• The charity must be a non-profit organization that is established for charitable purposes.
• The charity's activities must be carried out in the UAE.
• The charity must be registered with the Ministry of Community Development or the relevant local authority.

What expenses are eligible for input tax recovery?

Charities can recover input tax on expenses that are directly related to their charitable activities. This includes expenses such as:

• Rent
• Utilities
• Supplies
• Equipment
• Travel
• Staff costs

How to recover input tax

To recover input tax, charities must follow these steps:

1. Register with the FTA. If you are not already registered with the FTA, you will need to do so before you can recover input tax. You can register online or by submitting a paper application.
2. Obtain a tax invoice for each eligible expense. A tax invoice is a document that shows the amount of VAT that was paid on a purchase. You can only recover input tax on expenses for which you have a valid tax invoice.
3. Submit a VAT return to the FTA. A VAT return is a form that you must submit to the FTA each tax period. The VAT return will show the amount of VAT that you have paid and the amount of input tax that you are claiming to recover.
4. The FTA will review your VAT return and will either approve or reject your input tax claim. If your claim is approved, the FTA will refund the amount of input tax that you are owed.

Additional information

For more information on how to recover input tax, charities can visit the FTA website or contact the FTA customer service center.

Here are some additional tips for recovering input tax:

• Keep all of your tax invoices in a safe place.
• Make sure that your tax invoices are complete and accurate.
• Submit your VAT returns on time.
• If you have any questions about recovering input tax, contact the FTA customer service center.

I hope this guide has been helpful. Please let me know if you have any other questions.