What's the difference between 'Input Tax' and 'Output Tax' under UAE VAT?

Output tax is the VAT a registered business charges and collects from its customers on its sales, and which it owes to the Federal Tax Authority. Input tax is the opposite: the VAT that same business already paid to its own suppliers on purchases and expenses — an amount it can generally recover or offset, provided it holds proper documentation and the spend relates to a taxable activity.

Each tax period, a business compares the two figures: if output tax is higher, it pays the difference to the FTA; if input tax is higher, it can claim a refund or carry the credit forward. An everyday example: a shop collects 5% from customers (output) but also paid 5% on its rent and stock (input); only the difference between the two actually reaches the government. Confusing the two, or simply forgetting to claim input tax, is a common mistake that costs businesses real money. RASEEKH reconciles input against output before every VAT return.