Through this service, the FTA approves the use of a special method for input tax apportionment in cases where the standard method does not produce a result that reflects the actual use of the goods or services

• Email: Inputtaxmethod@tax.gov.ae
24 hours a day, 7 days a week

Free

30 Minutes

65 business days from the date the application was received, for applications related to the use of a sectoral method 45 business days from the date the application was received, for applications related to the use of a non-sectoral method

To complete a request for changing the input tax apportionment method, fill out the required fields in EmaraTax and attach the following documents that show:
• The calculation of the residual input tax recovery percentage and amount that result from using the standard method of apportionment for the 12-month period preceding the application date (as applicable).
• The calculation of the residual input tax recovery percentage and amount that would result from using the proposed special apportionment method that you wish to apply for the same period (as applicable), and if necessary, another alternative special apportionment method that might be suitable for your business. 
• Any evidentiary documents that support your input tax apportionment calculations. This includes a detailed letter (on company letterhead and signed by the authorised signatory), providing details on your business activities, supplies that you make, reasons for applying to use a special input tax apportionment method, and any other relevant information. If the FTA has previously requested further information, your letter must address the FTA’s queries and requests.

All calculation files should be in Excel format. Accepted file types for other documents are Excel, PDF, JPG, PNG and JPEG. The individual file size limit is 5MB.

 

1. Access the EmaraTax account dashboard
2. Request for Changing the Input Tax Apportionment Method.
3. Fill the required fields in EmaraTax
4. Prepare the relevant supporting documents
5. Complete the application process

1. Can a back-dated special input tax apportionment method decision be requested?

A back-dated special input tax apportionment method decision may not be requested.

2. How long are approved special input tax apportionment method decisions valid for?

The approval will typically be granted for 4 years in the case of a non-sectoral method, and for 2 years in the case of a sectoral method.

3. Can a special input tax apportionment method decision be objected to?

Special input tax apportionment method decisions may be objected to through submitting a reconsideration request to the FTA.

4. What happens upon the expiry of the approved special input tax apportionment method decisions?

In order to continue using the approved special input tax apportionment method decision, a new application for the use of a special method for input tax apportionment must be submitted, containing all necessary documents, as well as refer to the previously approved decision, before the expiry of the previously approved decision.

Where a new application was not submitted prior to the expiry of the previously approved decision, the applicant must revert back to using the standard method for the apportionment of input tax from the date of expiry of the validity of the previous decision.

5. Can special input tax apportionment method decisions be used by other persons?

Input tax apportionment method decisions only relate to the applicant and persons mentioned in the decision.

 

1. The applicant must be registered for VAT with the FTA
2. To be eligible to apply for the use of a special method for input tax apportionment, all of the following conditions must be met: 
• the applicant has been registered for VAT for at least 6 months,
• the applicant makes both taxable supplies and exempt supplies, and
• the standard method of input tax apportionment does not give a fair and reasonable result to input tax recovery.
3. If the application is incomplete, or additional information is required, the FTA will request additional documentation. After submitting the additional documentation, it may take the FTA a further 65 / 45 business days to respond to the updated request
4. The application form must be filed electronically. Handwriting or email applications are not accepted.