Once you are VAT-registered mandatorily, you need to charge VAT on all the goods and services that you are dealing in except the exempted or zero-rated supplies and account for the VAT you collected from customers through tax returns filed with the FTA. You can recover the VAT you pay to your suppliers (input tax) on your tax returns by presenting the tax invoice or other evidence of the supply or import. For example, if you run a restaurant and pay AED 500 + AED 250 (5% VAT) = AED 5250 for food raw materials and after processing the food into meals you sell it to your customers at AED 15000 + AED 750 = AED 15750. You have to pay back to the VAT authority the VAT you charged from your customer minus the VAT you paid to your supplier i.e. AED 500 (AED 750 – AED 250). The VAT office will collect the VAT of AED 250 from the food supplier as well.