VAT Refund Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
VAT Refund Services in the UAE
Accurate claims, properly documented, for every category of refund the UAE VAT framework actually allows.
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.
- Registered FTA tax agent, managing refund applications directly through EmaraTax
- Full category coverage, from standard business refunds through to diplomatic and reciprocal foreign business claims
- Rejection-proofing built in, checking documentation and compliance status before submission, not after
Getting a VAT refund claim right the first time avoids the delays that come from incomplete documentation or unresolved compliance issues.
Our Specialists In VAT Refund Services
Romany Shayb
Senior VAT Consultant
Ahmad Ali Jourieh
Senior VAT Consultant
Nayomi Jayaweera
VAT Consultant
As a Trusted VAT Consultancy in the UAE, Farahat & Co. Offers the Following VAT Services:
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
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.
- 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: typically processed within 20 business days of FTA approval
- Tourists: processed at the point of departure through the Planet system
- Diplomatic bodies: typically issued within 10 business days of approval
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, since unresolved compliance issues will delay or block a refund
- Tourists should purchase only from Planet-registered retailers to qualify for the tourist refund scheme
| Eligible for VAT Refund | Not Eligible for VAT Refund |
|---|---|
| VAT-registered businesses with a valid TRN | Businesses not registered under UAE VAT law |
| Tourists shopping at Planet-registered retailers | Tourists shopping from non-registered outlets |
| Embassies, consulates, and international organisations | Businesses with unpaid VAT penalties |
| Businesses with excess input tax | Applicants with incomplete or incorrect documents |
Why Choose Farahat & Co. for VAT Refund Services
Our VAT team keeps track of every category of refund claim, tourist, business, diplomatic, and foreign entity alike, ensuring claims are processed as quickly as possible while making sure clients receive the full refund they’re entitled to.
- Result-oriented: our VAT specialists understand each client’s specific activities and structure claims accordingly, with a dedicated point of contact for every business
- Deep resource base: our team stays current with UAE VAT legislation as it evolves, supported by regular internal training
- Clear communication: refund timelines can vary, so we provide regular updates on claim status rather than leaving clients guessing
- Full compliance: every claim we submit is checked against current FTA requirements before it goes anywhere near the portal