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May 15, 2026

This Cabinet Decision issues the Executive Regulations for the Federal Decree-Law No. 8 of 2017 on Value Added Tax, providing detailed implementation rules. Article 54 clarifies the conditions for input tax recovery, implementing Article 55 of the Decree-Law. It stipulates that input tax can only be recovered on the portion of consideration paid during a tax period. Significantly, it establishes a key condition where a taxable person is treated as having paid if they intend to make the payment within six months of the agreed date.

Part 10 - Calculation of the Due Tax

Article 54 - Special Cases of Input tax

The amount of refundable tax that can be reclaimed by a taxable person in the tax period in relation to the supply of goods or services made to him, is the amount of Input Tax that relates to the portion of consideration in respect of the supply that has been paid during such tax period.
For the purposes of paragraph (b) of Clause (1) of Article 55 of the Decree-Law, a taxable person shall be treated as having made a payment of consideration for a supply to the extent that the taxable person intends to make the payment before the expiration of six months after the agreed date for the payment for the supply.