Output and Input VAT Team A

A business issues an invoice for AED 10,000 plus 5% VAT, but the customer fails to pay after 12 months. How much VAT can the business recover as bad debt relief if all conditions are met?

• AED 0

• AED 250

• AED 500

• AED 5,000

Which of the following is considered a deemed supply under UAE VAT law?

• Goods given as free samples to employees

• A discount given to a loyal customer

• A return of goods by a customer

• Goods supplied outside the UAE

A business sells goods for AED 20,000 and offers a 10% cash discount if the payment is made within a week. What is the VAT amount if the customer avails the discount?

• AED 1,000

• AED 900

• AED 950

• AED 1,100

Under UAE VAT law, which of the following is NOT considered irrecoverable input VAT?

• VAT paid on personal expenses

• VAT on entertainment expenses for non-employees

• VAT on office rent for a registered business

• VAT on a car purchased for personal and business use

A VAT-registered company purchases office supplies for AED 5,000 (including 5% VAT). How much input VAT can be recovered?

• AED 250

• AED 500

• AED 238

• AED 0

Which of the following conditions is NOT required for a business to recover input VAT?

• The business must be VAT-registered

• The VAT must be related to taxable supplies

• The VAT invoice must be in the business’s name

• The VAT must have been paid in cash only

A business registered for VAT on March 1, 2024. It purchased equipment worth AED 50,000 (excluding VAT) on January 15, 2024, for business use. How much input VAT can be claimed if the equipment is still in use?

• AED 2,500

• AED 0

• AED 5,000

• AED 10,000

Which of the following scenarios would make a business unable to recover pre-registration input VAT?

• The goods purchased before VAT registration were sold before the business was registered

• The goods purchased before registration are still used in the business

• The services purchased before registration relate to taxable supplies made after registration

• The business has valid tax invoices for all pre-registration purchases

A business provides free promotional gifts to customers. The total cost is AED 5,000 plus 5% VAT. How much output VAT should the business account for?

• AED 0

• AED 125

• AED 250

• AED 500

Which of the following is an example of an irrecoverable input VAT expense under UAE VAT law?

• VAT on equipment purchased for business use

• VAT on medical insurance for employees (where required by law)

• VAT on business travel for client meetings

• VAT on hotel accommodation for non-employee business guests