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VAT Refunds - UAE


VAT Refunds - UAE

What is a refund?

When the input tax is greater than the output tax on a VAT return, the taxpayer can request a VAT refund after filing their VAT return. 

Timeline for refunds

When a taxpayer submits a claim for refund, the FTA will process and review the application within 20 business days of submission. The taxpayer will be notified regarding the FTA’s decision to accept or reject the claim. If the process exceeds the timeline of 20 days, the FTA will notify the taxpayer regarding the extension of the deadline

VAT refund form

The VAT refund form contains the following fields:

Submitting a refund claim

To submit a refund claim:

Special VAT refund procedure

There are special VAT refund procedures for business visitors, and UAE nationals involved in the construction of new residential buildings.

Business visitors

Eligibility criteria
Foreign business owners can apply for VAT refunds if they satisfy the following eligibility criteria:

Timeline
The timeline for each refund claim is 12 calendar months. The first refund application should be made at the end of 2018. 

VAT refund limit
The minimum amount of each tax claim submitted by business visitors under the Foreign Businesses Scheme is AED 2000.

Procedure
To submit a refund claim:

UAE nationals involved in building new residences

UAE nationals building new residences need not set up an e-Services account to submit a refund claim. They can use the refund form downloaded from the FTA website to claim a refund.

Eligibility criteria
The person claiming the refund must be a UAE national, and they should provide supporting documentation showing their national status, such as a family book or passport.

What is reclaimable?
VAT refunds can be claimed if the expenses meet the following criteria:

Here’s a list of incorporated goods that are eligible for VAT refund:

Timeline
You should submit your refund form to the FTA within 6 months after the date of completion of the building. The date of completion is the earlier of:

Procedure
To submit a refund claim:

Verification Body

A Verification Body is an FTA-approved third party that reviews expenditure, invoices, and VAT incurred by applicants to verify their refund claims. 

Documents to be submitted to the Verification Body
The following documents should be submitted to the Verification Body:

Procedure
  Your Verification Body will provide details about how to proceed with the application and what fees they will charge for the review process. You cannot claim VAT refunds for the verification body fees.The verification body will process your request within 15 days and hand over the signed and stamped verification report to the FTA. This report will contain the total VAT amount to be refunded. You will also receive a copy of the report from the verification body.

Processing by the FTA
The refund application will be processed by the FTA within 20 business days, once they receive the verification report from the verification body. The taxpayer will be notified regarding this via e-mail and once the claim is processed and approved, the FTA will make the refund payment within 5 business days.

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