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VAT Refund Claims in UAE

VAT experts offering VAT refund claim assistance and advisory services help tourists, local service providers, foreign businesses, and multinational conglomerates secure the approval of the country's tax authority for VAT reclaims, maximizing tax recovery and savings.

VAT Refunds for Foreign Businesses

Creating a global hub that supports the economic activities of foreign businesses in the country, the FTA designed a refund scheme for VAT that’s paid on incurred expenses while in the UAE (e.g. local purchase of goods, travel, and lodging of employees, and clinical trials).

It is vital for businesses that are trading and operating cross border to take into account VAT incurred. Our VAT consultants can help you recover excess VAT paid while you’re overseas. Our team of experts can help calculate excess payments and identify recovery restrictions on different kinds of expenditure. Also, we can guide you in the preparation of a VAT refund application to potentially reduce the time and resources required in its approval and completion.

Farahat & Co.’s tax consultants have decades of practical experience in assisting the SMEs, corporates, banks, publicly listed companies, and the travel sector in processing VAT refund claims, including business travel agents, online travel businesses, and major tour operators.

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VAT Refunds for Taxable Persons in the UAE

Generally a professional, sole trader, business entity or corporate body carrying out an economic activity in the UAE, a 'taxable person' is required in filing a VAT return, which summarizes the Value Added Tax (VAT) due to UAE's tax authority for a tax period. If the amount paid is greater than what is due on the VAT return, it is possible to request a refund, which can be done after the submission of the VAT return.

The FTA processes claims within 20 business days. For complex cases, the FTA notifies applicants if the processing and evaluation would take longer. You can increase your likelihood of getting approval from the country's tax authority by seeking the expertise of our tax consultants in the completion and submission of a VAT refund application. We can also represent and act on your behalf in front of regulatory bodies (as required).

Must read: VAT Return Filing Issues In UAE

VAT Refunds for Construction of New Residences

UAE nationals can claim refunds for VAT paid for the construction of new residences under certain conditions. The New Residence Construction VAT refund scheme for the country’s locals is launched to develop a stable, and modern housing system within the UAE. Claims require the submission of supporting legal documentation to verification authorities in the UAE for approval. A refund will be provided to an eligible applicant after the final approval.

Farahat & Co.’s certified tax professionals can help ensure a smooth filing and approval of a VAT refund claim for the construction of your new residence by preparing, drafting, reviewing, and verifying the necessary documents. Let our VAT consultants conduct a detailed review of the supporting documentation before you submit a VAT refund application.

How to claim Vat refund in UAE for tourist?

Tourists can claim refunds across the UAE for up to Dhs 10,000 daily. This new VAT refund scheme is imposed by the UAE FTA to encourage spending on retail as tourists can now enjoy competitive rates. However, refunds are only given to purchases made from selected stores across the country. Still, the potential for savings is enormous.

Talk to our vat consultants TODAY as they will help you assess your specific circumstance and give key advice in claiming refunds.

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.