A business buys a AED 8 million building and reclaims VAT on day one. Ten years later, the FTA can still ask for money back.
The UAE VAT Capital Assets Scheme applies to a single item of business expenditure of AED 5,000,000 or more (excluding tax) with a useful life of 10 years or longer for buildings, or 5 years or longer for other capital assets. Under Articles 57 and 58 of the VAT Executive Regulations, a business must monitor how much it actually uses that asset for taxable activity each year and adjust the input tax it originally recovered, every year, for the full 10-year or 5-year period.
Read the full breakdown, with worked examples covering warehouses and equipment, disposal adjustments, and the most common compliance mistakes businesses make: https://qasproglobal.com/uae-vat-capital-assets-scheme-2026/
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