Not all VAT paid by businesses (input tax) might be recoverable or refundable from the Government. These non-recoverable input VAT become additional expense or cost on business if not assessed properly prior to them being incurred. Thus, a careful planning and policy should usually be established to address the risk of exposure to such non-recoverable indirect-tax (VAT). The diagram below summarizes the categories of non-recoverable input tax, in accordance with the regulations in the UAE.