Taxable persons are entitled to deduct the VAT on inputs they incurred (paid) before the registration effective date for VAT purposes. Depending on the case, this applies to goods and services received for the purpose of use within the context of economic activity (up to the extent that enables them to carry out taxable supplies, intermediary supplies, and supplies that would have been taxable if they had occurred in the Kingdom).

The right to deduct VAT on inputs paid before the registration effective date is subject to specific conditions and standards.

The Unified VAT Agreement stipulates the following conditions regarding the deduction of VAT on inputs paid before the registration date:

Receipt of goods and services for the purpose of making taxable supplies.
Non-consumption of capital assets entirely before the registration date.
Non-supply of goods before the registration date.
Receipt of services within a certain period before the registration date as determined by each member state.
The goods and services should not be subject to any restrictions associated with the right to deduction as stipulated in this agreement.
Taxable persons are entitled to deduct VAT on inputs incurred regarding services provided to them during the six months preceding the registration effective date, provided that:

The services are purchased for the purpose of use within the context of economic activity.
The services have not been supplied to another person and have not been fully used by the taxable person before the registration date.
The services are not of a restricted type for deduction. (Guidance Manual “Input Tax Deduction”)