FTA- Special Input tax Apportionment Methods Guide
The guide states that any taxable person making a mixture of taxable and exempt supplies is required to apportion their input tax so that input tax recovery is restricted to the proportion relating to supplies on which VAT is recoverable.
The standard method for input tax apportionment is described in Article 55 of the UAE VAT Regulations.
However, this method is not appropriate for every business, the FTA has introduced several special methods, of which certain methods are only available to businesses in specific industries.
The new guide describes each special method and the types of businesses it is available to, as well as guidance on the process of applying for a special input tax apportionment method.