Update on the filing Applications for Input VAT Apportionment
Update on the Procedures for filing Applications for Input VAT Apportionment
VATGIT1 published June 2023 replacing the Input Tax Apportionment: Special Methods VAT Guide (VATGIT1) published in December 2019 and March 2023.
1. Overview
What is residual input tax?
- Input tax incurred in respect of goods or services which are used partly for making supplies that allow for VAT recovery and partly for other purposes for which VAT is not recoverable.
- Must be apportioned between activities through apportionment percentage through either the:
a) standard method or
b) special methods
2. Types of special method
- Outputs-based method
- Transaction count method
- Floorspace method
- Sectoral method
3. Procedures for filing applications for special input VAT apportionment method
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Old |
New |
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Once the registrant completed the Input Tax Apportionment Request Form, the soft copy (in readable format), along with the supporting documents, must be sent to [email protected] |
The form must be completed electronically via the concerned person’s EmaraTax portal on the FTA’s website.
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4. Sections to be filled out in the EmaraTax portal
- About the Applicant
- Business Activity Details
- Request Details
- Declaration and Authorized signatory
- Review
* Tax registrants may refer to the relevant EmaraTax guide for more information on the process to submit the form.
How can Crowe help?
- Assess the most suitable special method of input VAT apportionment depending on the tax registrant’s line of business
- Assist in submitting
applications for special input VAT apportionment through EmaraTax portal
