The Federal Tax Authority (FTA) has issued a revised Input Tax Apportionment Guide (VATGIT1, September 2025), which replaces the previous version dated March 2023. The updated guide reflects the amendments introduced to the UAE VAT Executive Regulations through Cabinet Decision No. 100 of 2024 and sets out several important changes that businesses should consider when calculating and applying input tax recovery methods.
Key updates include:
- Introduction of Specified Recovery Percentage (SRP) – simplifying compliance for businesses with stable recovery ratios
- Clearer rules for special methods (outputs-based, transaction count, floorspace, sectoral)
- Stricter application procedures via EmaraTax with defined timelines
- Enhanced obligations for notifications and renewals
Full analysis is available in our latest Tax Insight — you can download it via the link below.
