VAT Refund Service in Dubai, UAE
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
VAT Refund Services in the UAE
Expert VAT Refund Support for Businesses, Tourists, UAE Nationals, and Diplomatic Bodies
The UAE VAT framework provides refund mechanisms for several categories of claimants — including VAT-registered businesses, foreign companies, tourists, UAE nationals building new residences, and diplomatic bodies.
Farahat & Co. guides businesses and individuals through every stage of the VAT refund process — ensuring claims are accurately prepared, properly documented, and submitted in line with FTA requirements.
VAT Refunds for VAT-Registered Businesses
A VAT-registered business is entitled to claim a refund where input tax — VAT paid on purchases and expenses — exceeds output tax — VAT charged on sales — for a given tax period. This results in an excess refundable tax position that can be reclaimed from the FTA.
To claim a VAT refund as a taxable person:
- File the VAT return for the relevant tax period and report the net VAT position accurately
- Submit a refund application through the FTA’s EmaraTax portal — either immediately after filing the return or at a later date
- Ensure all supporting invoices and records are accurate and FTA-compliant
Refund timeline: The FTA reviews refund applications and issues a decision within 20 business days of submission. Where the claim is approved, the refund is transferred to the business’s registered bank account within five business days.
VAT Refunds for Foreign Businesses
Foreign businesses that have incurred VAT on expenses in the UAE may be eligible to reclaim that VAT — even if they are not registered for VAT in the UAE — provided the following conditions are met:
- The business has no place of establishment or fixed establishment in the UAE or any GCC implementing state
- The business is not a taxable person in the UAE
- The business is registered with a competent authority in its country of establishment
- The business’s home country offers reciprocal VAT refunds to UAE entities in similar circumstances
- The minimum refund claim amount is AED 2,000
- The refund claim period covers 12 calendar months
- All invoices submitted must be valid tax invoices showing the correct TRN of the UAE supplier
VAT Refunds for Tourists
Body: Tourists visiting the UAE can reclaim VAT paid on eligible purchases made during their visit through the Tax Refund for Tourists Scheme, operated by Planet — the FTA’s exclusive service provider.
Eligibility conditions:
- The tourist must not be a UAE or GCC resident and must not be a crew member of a departing flight
- Purchases must be made from a Planet-registered retailer participating in the tourist refund scheme
- The minimum spend at a single retailer is AED 250
- Goods must not have been consumed or partially used within the UAE and must be in the tourist’s possession at the time of departure
- The tourist must depart the UAE within 90 days of the purchase date
Claiming the refund: At the point of sale, the tourist requests a tax-free purchase and provides a valid passport and credit card for verification. At the departure point — airport, seaport, or land border — the tourist validates the claim using self-service kiosks or through Planet staff. Refunds are issued in UAE dirhams or by credit card, after deducting a small service fee.
VAT Refunds for UAE Nationals Building New Residences
UAE nationals can claim a VAT refund on construction costs incurred when building a new home for their own or their family’s exclusive residential use.
Conditions that must be met:
- The applicant must hold a valid UAE passport and Family Book
- The property must be newly constructed and used exclusively as a private residence by the applicant or their family
- The refund claim must be submitted within 12 months of the building completion date — typically the date shown on the completion certificate
- If the property is subsequently used for purposes other than private residential use, the refunded VAT must be repaid to the FTA
VAT Refunds for Foreign Governments, International Organisations, and Diplomatic Bodies
Accredited foreign missions, diplomatic representatives, and recognised international organisations may be eligible to claim VAT refunds on expenditure related to their official activities in the UAE, subject to the following conditions:
- The applicant must be recognised and accredited by the UAE Ministry of Foreign Affairs and International Cooperation (MOFAIC)
- The applicant must not be a UAE national and must not hold a visa sponsored by any entity other than their foreign government, diplomatic mission, or international organisation
- The applicant must not conduct any business activities in the UAE
- Refund claims are subject to the principle of reciprocity and applicable bilateral agreements between the UAE and the claimant’s home country
Once a claim is approved, the FTA aims to issue the refund within 10 business days.
VAT Refund Timelines and How to Avoid Rejection
Refund timelines:
- Businesses — refunds are typically processed within 20 business days of FTA approval
- Tourists — refunds are processed at the point of departure through the Planet system
To avoid rejection of your VAT refund claim:
- Ensure all invoices are FTA-compliant and include the correct supplier TRN
- Submit refund claims within the applicable deadlines
- Organise all supporting documentation before submission
- Settle any outstanding penalties or late-filed returns before applying — unresolved compliance issues will delay or block a refund
- Tourists should purchase only from Planet-registered retailers to qualify for the tourist refund scheme
Who is Eligible vs. Not Eligible for VAT Refund in Dubai
| Eligible for VAT Refund | Not Eligible for VAT Refund |
|---|---|
| VAT-registered businesses with a valid TRN | Businesses not registered under the UAE VAT law. |
| Tourists shopping at FTA-approved retailers | Tourists shopping from non-approved outlets |
| Embassies, consulates & international organizations | Businesses with unpaid value added tax penalties |
| Businesses with excess input tax | Applicants with incomplete or incorrect documents |
Why Clients Choose Us
Result-oriented
Resource
We’re comprised of a professional and experienced team of value added tax specialists. In short, the firm helps ensure that the business that trusts us gets assigned to a team that 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.
Communications
Compliance
similarly, our team helps ensure that the claims of our clients are all fully compliant with applicable requirements and regulations about -value added tax in the UAE.
Commonly Asked Questions (FAQ) about VAT Refund Dubai
Who is eligible to claim a VAT refund in the UAE?
How does a VAT-registered business claim a VAT refund?
Can a business claim a VAT refund if it has outstanding penalties or unfiled returns?
What documents are required to apply for a VAT refund?
What is the minimum VAT refund amount for foreign businesses?
How do tourists claim a VAT refund when leaving the UAE?
Can UAE nationals claim VAT back on building a new home?
What are the most common reasons VAT refund claims are rejected?
How long does the FTA take to process a VAT refund?
Can Farahat & Co. assist with VAT refund applications?
+971 52 6922588 | Tel: +971 4 2500251 | E-mail: [email protected]