There are likely a few people who remain curious about the procedure for claiming VAT refunds in the UAE. VAT (Value Added Tax) is a consumption tax that is added to the value of goods and services at each stage of production and distribution.
Every company with an FTA registration must submit a VAT return with information on sales and purchases made during the tax year. The amount paid to the supplier for purchases or expenses is known as input VAT, and the amount collected on sales is known as output VAT.
The remaining VAT will be payable and must be paid to the FTA if the input VAT amount is less than the output VAT. The excess amount will be refundable in VAT if the input VAT is more than the output VAT amount.
A VAT refund in the UAE typically refers to a process where certain eligible individuals or entities can reclaim the VAT, they paid on eligible business expenses. To claim a VAT refund, businesses usually need to follow a set of procedures, including keeping proper documentation and adhering to the guidelines provided by the tax authorities.
Eligibility criteria and the types of expenses eligible for a refund can depend on the laws and regulations in place at any given time.
To request and claim a VAT refund in the UAE, log in to EmaraTax (an online platform to control all the tax procedures), fill out the form, and submit the required documents. Follow the steps to submit a VAT refund claim through the FTA’s e-service portal:
Log in to the EmaraTax portal with your credentials, or create one if you don’t have one by clicking the sign-up button.
Go to the VAT tab, then the VAT Refunds tab, and access the form by clicking VAT refund request.
Some of the fields are pre-populated using the details from your account. Make sure that the details you’ve entered are correct, then submit the form by clicking ’Submit’.
After you submit the form, you will receive an email from the FTA to notify you of the result of your refund application. Once the claim is approved, the refund will be processed within 5 business days.
Verify your balance after the approval. Once you receive a confirmation email of the refund, you may check your balance through the ‘My Payment’ tab under the Transaction History section in the EmaraTax Dashboard.
Following receipt of the refund claim, the FTA will assess and review it within 20 working days. The FTA will then notify the taxpayer if the claim is approved or denied. The FTA will advise the taxpayer about the time extension if the process takes longer than twenty days.
On November 18, 2018, the UAE Federal Tax Authority (FTA) made an announcement regarding VAT refund for tourists. The tourists are eligible to get back the VAT they paid on their purchases when leaving through UAE International Airports.
Since tax-free shopping is accessible to anyone who is not a resident of the UAE, GCC nationals are qualified under the current regulations.
It is tax-free to purchase goods in the UAE for export, subject to certain limitations and conditions. Customers who verify their purchases in accordance with local laws can be qualified for a refund on specific products.
To precisely assess whether VAT will be eligible for reclaim, we undertake a thorough investigation of every necessary document and understand the client's business activities.
Additionally, each client receives individualized attention from our team of experts to guarantee that the entire procedure is finished precisely and on schedule.
To optimize our clients' prospective tax returns, we employ a diligent process that begins with an assessment of all relevant records and documentation pertaining to business operations.
We offer the best VAT refund services in the UAE. You can seek help from our tax professionals to get your VAT refund from FTA
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