How to Claim VAT Refund in UAE?

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 filing 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.

 

What is a VAT refund?

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.

 

How to claim VAT Refund in UAE for Businesses?

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 Federal tax autority (FTA)’s e-service portal:

• Log in to the FTA’s e-Services portal (EmaraTax)
  Log in to the EmaraTax portal with your credentials, or create one if you don’t have one by clicking the sign-up button.

• Get a VAT refund request form
  Go to the VAT tab, then the VAT Refunds tab, and access the form by clicking VAT refund request.

• Complete the form with the necessary details
  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, FTA typically credits refunds within a few weeks, depending on claim size and verification.

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.

 

Timeline for VAT Refund

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.

 

VAT Refund for Tourists in UAE

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.

 

How to Collect Your VAT Refund for Tourists in UAE?

• The traveler should bring the items and the receipt with them to the airport. The traveler must visit a validation station at the airport.

• The traveler chooses a refund option upon validation. Note that the tourist might have to submit the goods for inspection and undergo a second validation check.

• Cash refund process: A maximum cash reimbursement of 10,000 AED may be given to each tourist. If the amount exceeds it, all further payments must be made using a credit or debit card.

 

VAT Refund Services in UAE

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 about 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

 

Conclusion

Understanding and managing VAT refunds in the UAE is essential for maintaining healthy cash flow and ensuring compliance with FTA regulations. Whether you’re a business reclaiming excess input VAT or a tourist seeking a refund before departure, following the correct procedures and maintaining proper documentation is key to a smooth refund process.

At GAAP Associates, our VAT experts provide complete support from assessing your eligibility to filing refund claims through the EmaraTax portal, ensuring accuracy and timely approval. Partner with us to simplify your VAT refund process and maximize your tax efficiency in the UAE.