Can foreign businesses claim VAT refunds?
Yes, foreign businesses are eligible for VAT refunds in the following circumstances:
The business owner is a resident in a GCC state that is not considered to be an implementing state;
A foreign entity that carries on business under the following conditions:
- It has no place of establishment or fixed establishment in the UAE or an implementing state;
- It is not a taxable person;
- It is registered as an establishment with a competent authority in the jurisdiction, in which it is established; and
- It is from a country that provides refunds of VAT to UAE entities in similar circumstances.
The period of VAT refund is 12 calendar months. Hence, the first application can only be made after the end of 2018.
The minimum amount of each tax claim that can be submitted under this scheme is AED 2,000.