Zakat, Tax and Customs Authority clarifies input VAT deduction rules for old invoices

The Zakat, Tax and Customs Authority has clarified the rules for deducting input VAT on purchase invoices issued more than a year ago, in response to a query about including such an invoice in the VAT return for the third quarter of 2025.

The question was raised via the “Ask Zakat, Tax and Customs” account on X, where a user asked if it is permissible to deduct a purchase invoice that is over a year old in the VAT return for the specified period.

View the post on X

The authority responded that a taxable person is entitled to deduct input VAT incurred on services received during the six months prior to the effective date of their VAT registration.

It added that the executive regulations allow a taxable person to deduct input VAT related to goods in tax periods following the period in which the supply took place, provided that the deduction does not exceed five years after the year of supply.

This clarification outlines the time limits for input VAT deductions, noting that the rules may vary depending on the nature of the purchases and the timing of VAT registration.