As per the VAT law, UAE nationals building new residences, tourists and foreign businesses can claim VAT refunds. This article explains all the VAT refund cases and how to claim VAT refunds in UAE.
You can file for a VAT refund when the input tax is higher than the output tax for a tax period. You must do it after filing the VAT return or later whenever a VAT refund is due.
You shall follow the below steps to claim a VAT refund:
Step 1: Log in to FTA e-Services Portal using username and password.
Step 2: Go to the ‘VAT’ tab and then to the ‘VAT Refunds’ tab to access the VAT refund form.
Step 3: Now, click the ‘VAT Refund Request’ to access the refund form.
Step 4: Please fill in the required fields in the form.
Note: Fields marked with an (*) asterisk are mandatory and must be filled in to submit the form. Also, the VAT portal automatically retrieves a few fields.
Step 5: Once you complete the form, click the ‘Submit’ button.
Usually, FTA will review the VAT refund application, process and notify you within 20 days from the application submission date. The authority either accepts or rejects the VAT refund claim. The authority will credit the refund within five business days once your claim is approved.
However, FTA may take more than 20 days to process the VAT refund application and notify you accordingly.
The authority introduced the ‘VAT Refund Scheme for Foreign Businesses’ to enable foreign businesses to claim VAT refunds in certain cases. This scheme allows eligible foreign business visitors to claim back the VAT.
Below are the eligibility criteria for foreign business owners to apply for VAT refunds in UAE:
It is to be noted that you can claim a refund once every 12 calendar months. Also, the minimum refund amount to be claimed must be more than AED 2000.
A person who owns or acquires land to build his/her own residence is entitled to get a special refund from the FTA. This refund is limited to the VAT incurred on specified expenses related to constructing a new residence.
You must be a UAE national and provide supporting documentation, such as a family book or passport, proving your national status. Further, to claim this refund, you don’t have to set up an e-services account; instead, you can use the downloaded refund form from the FTA website.
You must meet the following criteria to claim the VAT refund:
Below is the list of goods that are eligible for VAT refund:
Further, you must submit the refund form to the FTA within 12 months of the completion of the building. The date of completion is the earlier of:
FTA implemented the ‘Electronic Tax Refund Scheme for Tourists’ to allow UAE tourists to claim refunds of VAT paid on their purchases.
However, the seller must satisfy the below conditions so that the tourists can claim the VAT refund: