How to get a VAT Refund in UAE

VAT Return Filing in Dubai

As is known, VAT filing in Dubai is now mandatory. For eligible non-UAE-based businesses that don’t have vat registration in Dubai or vat registration UAE, there is an option to get a vat refund through the vat reclaim window that was opened on 1st March 2022 and is on till 31st August 2022. Such qualified businesses need to submit their Value Added Tax (VAT) refund requests to the Federal Tax Authority (FTA) for the 2021 calendar year. This vat refund falls under the UAE VAT refund for the Foreign Business scheme.

During the 1 March - 31 August 2022, the FTA will accept vat refund applications under the special scheme. All non-UAE resident businesses that have been levied VAT in the UAE can apply for a refund. However, there are stringent rules for this scheme to identify beneficiaries.

In case your refund claim had been stalled, FTA allows you to submit further information in support of your claim. There is a high chance that your claim is approved. Firms whose vat refund claims had been rejected must properly respond to any recent email correspondence from the FTA to get the process started. IBM Global can take you through the VAT refund process.

Who are Eligible for a Refund?

Non-UAE resident businesses can request a refund of the VAT that is in excess of AED 2000 and paid on certain expenses incurred in the UAE during the 2021 calendar year, under the UAE Foreign Businesses Refund Scheme.

To be eligible to make a claim on vat refund, a non-UAE resident business should meet the following criteria:

  • Don’t have a VAT registration in the UAE
  • Don’t operate the business in the UAE

Is registered as an establishment with a competent authority in the jurisdiction of its establishment

However, a vat refund is not applicable if:

  • The business makes supplies in the UAE
  • The incurred input tax falls under the irrecoverable category
  • The country of business is not on the FTA list
  • The business is a non-resident tour operator

As per the FTA guidelines published in April 2021, only claims made by businesses established in the countries that are on the FTA list will be eligible for vat refund. However, still there is a scope to minimize the irrecoverable vat, even if your business is not established in a country listed by FTA. IBM Global can help you in this regard.

Proper Documentation

Proper hard-copy documentation is very important if you want to submit a vat refund claim. Attestation of such documentation may also be needed in some instances. The documents needed include an Original tax compliance certificate; Original tax invoices; stamped proof of payment for all claimed tax invoices; Proof of authority for the authorized signatory; and a Passport copy of the authorized signatory.

Getting the required and relevant documents with proper attestations could be quite a task. Also, you need to submit them before the deadline. Submission delay can result in the rejection of the refund application. As a leading vat consultant, we can help you with fast preparation and submission of documents.

Vat Refund for Eligible Tourists and Visitors

Certain types of tourists and visitors to UAE also can claim a refund on VAT paid on purchases done during their stay in the UAE. The refund can be availed through a fully integrated electronic system that connects retailers registered in the ‘Tax Refund for Tourists Scheme’ with all entry and exit ports in UAE. The Tax Refund for Tourists Scheme came into effect on 18 November 2018. Global payments service provider Planet is the exclusive operator of the tax refund system for tourists. Only approved goods purchased from a retailer participating in the 'Tax Refund for Tourists Scheme' can claim a refund.

Contact IBM Global for any VAT-related service such as vat filing in Dubai, vat registration UAE, and vat registration in Dubai.

Frequently Asked Questions (FAQ's)

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