Whenever a taxable person or the business person goes to buy the service or good has to conduct the import. For example, whenever the retailers buy the goods from wholesalers, then they pay tax for the goods procured. The tax paid for a procurement of service and goods is known as input VAT.
What is net VAT?
When it comes to the net VAT of a business, this is mainly calculated by deducting the input VAT from the output VAT. If VAT is positive, then each and every business owner out there simply owes to Federal Tax Authority. But when the value of the net VAT is negative then each and every business owners simply applies for the claim for a setback amount.
The Input VAT Recovery opts for Claims and Refunds.
Purpose of the claim:
Each and every person who falls under the tax or who are basically taxable citizens are mainly needed to file the VAT return by summarizing the VAT due to Federal Tax Authority for the tax period. And when you see that input tax gets quite greater rather than the output tax on the VAT return, the person will surely request the VAT refund. The VAT refund will be simply requested after submitting the VAT return or even at any time later in that tax period.
Timeframe for repayment:
As the taxable person has the right for claiming for the refund so they can easily go through the process. Basically, the taxable person submits the proper claim for the refund of tax and the once the claim is submitted the Federal Tax Authority will continue their work on that. They will actually take almost twenty business days for reviewing the application of the taxable person and then they will notify that person of its decision. Their notification will of denying or approval of the refund claim. Sometimes, FTA might notify each and every applicant that they can also need a very long time rather than the twenty business days. The fact of the matter is when the FTA gets the proper submission of claim, they always scrutinize it and if they find out that this is quite clear and can be proceed properly then they just takes twenty days. But once they find out that the claim form comes with a few issues, and then they notify the taxable person that they will take longer than only twenty days for evaluating their application. They take their work seriously and always evaluate the form properly.
Recoverable input tax
If any of the purchasers is the taxable person and also the VAT registrant, then they are simply entitled to recover the tax acquired on the purchase of services and goods. The non-taxable person is usually not entitled to VAT recovery on any purchase.
Recoverable input tax: Tax amount, which can be easily repaid by Federal Tax Authority to the taxpayer.
For ultimate guidance regarding VAT filing in UAE, returns, auditing, accounting and also evaluating any of the forms regarding this input Tax VAT, you can easily deal with GCC Filings. They are mainly a one-stop solution, offering a wide range of services for businesses pertaining to VAT and even company incorporation in UAE.