1 July 2026 · Input VAT
Recoverable vs Blocked Input VAT
You can recover input VAT on costs used for making taxable supplies, supported by valid tax invoices. VAT on exempt or non-business use is not recoverable, and certain costs (such as some entertainment and personal-use items) are specifically blocked. Getting this split right is what keeps your VAT return accurate and audit-safe.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Recoverable input VAT
Recovery follows business, taxable use.
- Costs used to make taxable (standard or zero-rated) supplies.
- Supported by a valid tax invoice with a supplier TRN.
- Correctly apportioned where use is mixed.
- Recorded in the right VAT period.
Non-recoverable input VAT
Some VAT is simply not claimable.
- VAT on exempt-supply and non-business use.
- Certain entertainment expenses.
- Personal-use and specific blocked items.
- Anything lacking a valid tax invoice.
Related guides
Frequently Asked Questions
For businesses claiming input VAT correctly.
What input VAT can I recover?
VAT on costs used for taxable supplies, supported by valid tax invoices and correctly apportioned for mixed use.
What is blocked input VAT?
VAT you cannot reclaim — such as certain entertainment, personal-use costs, and inputs tied to exempt or non-business activity.
What if my invoice is not compliant?
Without a valid tax invoice the input VAT is generally not recoverable; request a corrected invoice from the supplier.
Can Exiloz review our input VAT?
Yes. We check recoverability and apportionment so you claim correctly and safely.
Claim input VAT the right way
Exiloz reviews recoverability so your VAT return is accurate and audit-safe.