VAT Refund in UAE
When your tax return has a greater input VAT than output VAT. Meanwhile, you will be able to request, as a taxpayer, a refund of the excess amount with the help of Farahat & Co’s regulated tax agents in Dubai. Input VAT is tax payable for items (goods and services) which purchased by a business or taxable person in UAE. The output VAT, on the other hand, is collected tax on items sold by business or taxable person in UAE.
Eligibility in obtaining VAT Refunds
Since the introduction of VAT in UAE, the firm and its reputable team of tax specialists help clients eligible for VAT refunds which are as follows:
- Taxable person or business entity that has paid an excess amount for VAT
- Tourists or foreign businesses visiting the UAE
- Foreign governments, military bodies, institutions, international organizations, and the like that have incurred VAT for any item that is supplied in UAE
Tax Refunds for Businesses in UAE
A business that registered for VAT must apply for VAT refund within a calendar year following the end of the calendar year in which qualifying conditions have taken place.
Our team of VAT specialists in UAE assist in checking whether a business is qualified when conditions met.
Taxable persons in UAE are able to obtain tax refunds, most especially when any of the following applies:
- When the tax payment of the taxable person or business exceeds the net amount of tax that is payable
- In the case of the excess in deductible net VAT per VAT return – excess VAT may be carried forward to the next taxation period
- If there is an excess in recoverable net VAT when a taxable person has sent a qualitied application for VAT deregistration
The FTA will offset the VAT refund of the taxable person or business against VAT amount that it has to pay until full excess amount is exhausted. The officials at the FTA in UAE will respond to applications for VAT refunds within sixty days starting from the date in which a taxable business has submitted a request. Take note: required documents have to be furnished such as receipts and invoices. incomplete and incorrect information supplied to the tax authority can result to a rejection in the application for VAT refund in UAE.
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VAT Refunds for Tourists and Foreign Businesses
Non-residents that are visiting the UAE are able to claim refunds for VAT paid while in the country with the help of our experts. The firm has helped non-residents in reclaiming VAT, such as:
- Taxable individuals that are residents of a GCC member state
- A non-resident of a GCC member state that meets any of the following conditions that are listed below:
- Must not have a supply of items (goods and/or services) that make it liable in paying VAT in UAE or any GCC member state during a tax period in which a VAT refund application relates
- However, must VAT registered or registered for business in the country of domicile
Why Clients Choose Us
We’re comprised of a professional and experienced team of VAT specialists. In short, the firm helps ensure that the business that trusts us gets assigned with a team which is well-versed with all the newest updates on UAE’s VAT legislation which constantly changes. Further, the firm schedules regular extensive training programs for its employees to make sure that all staff members are skilled and reliable in maximizing a business’ VAT refund entitlements.
similarly, our team helps ensure that the claims of our clients are all fully complaint to applicable requirements and regulations pertaining to VAT in UAE.
We know you have a lot of questions related to VAT refunds in UAE. Call us today to book a consultation!