The UAE Federal Tax Authorities (FTA) have published a new Value Added Tax (VAT) guide on Input Tax Apportionment in March 2023, in line with the UAE Federal Decree-Law No. 8 of 2017 on VAT and its amendments, as well as the UAE Cabinet of Ministers’ Decision No. 52 of 2017 on The Executive Regulation of the Federal Decree-Law No. 8 of 2017 on VAT and its amendments.

This guide replaces the previously published ‘Input Tax Apportionment: Special Method’ guide from December 2019, and introduces several changes like:

• Firstly, it expands the range of sectors that can use the outputs-based special apportionment method and the sectoral special apportionment method.
• Secondly, it provides clarification on the initial date for VAT registrants to apply to use a special apportionment method.
• Thirdly, it clarifies the effective date of the special method once approved by the FTA.
• Finally, it outlines the requirements for re-application of a special apportionment method.