Not all input VAT is recoverable — when exactly can I claim it back?

The general rule is that input VAT can be recovered when goods or services are purchased to be used in a taxable business activity — whether standard-rated at 5% or zero-rated at 0%. But the law also blocks recovery on specific categories, even when they're genuinely business-related. The main ones are: entertainment and hospitality expenses provided to anyone who isn't an employee — customers, officials, shareholders, investors — and pleasure trips generally. Also blocked are motor vehicles seating ten passengers or fewer that are available for personal use by anyone in the business, unless the vehicle is a licensed taxi, an emergency vehicle, or part of a core vehicle-rental operation.

The third category is employee personal benefits — goods or services bought for an employee's personal use, rather than for their job, are not recoverable, unless the benefit is legally mandated under UAE labour law or documented as a company policy genuinely necessary for the job, such as transport for a late-night shift. The rule of thumb is that "business-related" alone isn't enough on its own; you still have to check the expense doesn't fall into one of these carve-outs before claiming it. RASEEKH reviews your ledgers line by line so a recovery claim doesn't get rejected at audit.