VAT

VAT Refund Service

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VAT Refund in the UAE

In the UAE, it is required for all registered businesses to file a VAT return furnishing the details of sales, purchases, output VAT and input VAT during the tax period.

The output VAT is the amount collected on sales and Input VAT is the amount that is paid to the supplier towards purchases/expenses. When the output VAT is higher than the input VAT on the VAT return, the balance is considered to be VAT payable which the taxpayer has to pay. In cases when the input tax is greater than the output tax on the VAT return, the taxpayer is eligible for a VAT refund in Dubai and can apply for it after filing the VAT return.

The taxpayer can submit the VAT refund in Dubai claim and FTA will review the application within 20 business days after submission during which he/she will be notified of the eligibility for a refund. If the process exceeds 20 days, the taxpayer will be notified of the extension of the deadline.

VAT Refund Form

VAT refund form contains the enlisted fields:

  • TRN (Tax Registration Number)

The field will be pre-filled based on the taxpayer’s information in their profile. TRN number has to be verified before submitting.

  • Total amount of Excess Refundable Tax (in AED)

The field will be pre-filled based on the formula, Refunds – Penalties = Excess Refundable Tax. This includes the list of refunds reported in all previously submitted VAT returns and all administration penalties due except the late registration penalty.

  • Amount you wish to have refunded (in AED)

The amount of refund has to be equal to or less than the amount displayed in the Total amount of Excess Refundable Tax field.

  • Remaining amount of eligible Excess Refundable Tax

This field will be pre-filled with the amount of refundable tax that you can apply for in the future.

  • Late registration penalty amount (in AED)

The field will be pre-filled based on the penalties imposed upon you and whether you have settled the penalty amount or not.

  • Authorized Signatory and Declaration

The field will be pre-filled in English and Arabic. The declaration is to be read thoroughly before submission.

Special VAT Refund Procedure

Special VAT Refund procedures are applied for business visitors and UAE nationals involved in the construction of new residences.

Foreign business owners who satisfy these criteria can apply for a VAT refund:

  • Business is located in any GCC member state other than the Implementing State.
  • Does not have a place of establishment or fixed establishment in the UAE or in an Implementing State.
  • The business owner is not a taxpayer in the UAE.
  • Is registered as an establishment with a competent authority in the jurisdiction where it is established.
  • Is located in a country that provides VAT refunds to UAE entities.

UAE nationals involved in building new residences do not need an e-Services account to submit for a VAT refund in Dubai. Instead, they can download the refund form from the FTA website and use the same for the process.

The person claiming for refund should be a UAE national and should provide all supporting documents proving their national status.

Also, certain business owners such as foreign tour operators are not eligible to claim a VAT refund.

Why choose MAATS to assist with VAT Refund

MAATS Accountants and Consultants has proven expertise in providing the best VAT refund in Dubai. Our dynamic team of certified and dedicated professionals will guide through the Tax refund procedures of the FTA without hassle, notify you regarding the timely submission of the prescribed documents and follow up on the procedures actively.  

Frequently Asked Questions

Yes, tourists can claim VAT refunds for purchases made in the UAE through the “Tax Refund for Tourists” scheme, subject to specific conditions and limits.
Yes, VAT can be refunded for imports, provided the goods are used for taxable purposes. Exports are generally zero-rated and may not require a refund.
Businesses may be able to claim VAT refunds for overseas expenses under certain conditions, especially if the business is registered for VAT in the UAE.
VAT paid on accommodation and travel expenses may be eligible for refund if they are deemed necessary for business purposes.
If your business is not VAT-registered, you generally cannot apply for a VAT refund. Only VAT-registered businesses can reclaim VAT on their purchases.
If your application is rejected, the FTA will provide a reason, and you may have the opportunity to rectify the issue or appeal the decision.
Yes, capital goods such as machinery and equipment purchased for business use may be eligible for VAT refunds.
Charities and non-profit organizations that are VAT-registered may be eligible to claim VAT refunds on purchases used for their activities.
Yes, businesses can claim VAT refunds even after submitting VAT returns if they find they have overpaid VAT.
VAT refunds can be claimed on online purchases if the purchase is made for business purposes and meets the refund criteria.
Yes, businesses can seek the help of VAT consultants or professionals who specialize in VAT refunds to ensure accuracy and compliance.