1- VAT Refund Services in UAE
A registrant’s business has excess credit in the FTA account and wishes to request a refund for the whole amount or part thereof. Once this refund request has been submitted, it will need to be approved by the FTA and in certain cases, the FTA may request additional information to support the claim. The company may only request a refund once per Tax Period.
Time to Complete Application by the FTA
20 business days from the date the completed application was received
Who can apply for a Refund
- Businesses can request a refund if the business is registered for VAT and you have a valid Tax registration number (TRN).
- The business may also submit the application on behalf of a registrant with the Registrant’s Tax Agent or Legal Representative.
- The business has excess credit owed to you in your account.
- The business doesn’t have an outstanding or pending refund request for the same tax period
2- Refund for Excise Tax in UAE
If the business has excess credit in the FTA account that has been carried forward for at least two Tax periods and the company wishes to request a refund for the whole amount or part thereof. Once this refund request has been submitted, it will need to be approved by the FTA and in certain cases, the FTA may request additional information to support your claim. The company may only request a refund once per Tax Period.
Who applicable
- You can request a refund if you are registered for Excise Tax and you have a valid Tax Registration Number (TRN). You may also submit the application on behalf of a registrant if you are the Registrant’s Tax Agent or Legal Representative.
- You have excess credit in your account that has been carried forward for at least two Tax Periods.
- You do not have an outstanding or pending refund request for the same tax period.
3- VAT Refund for Tourists in UAE
Visitors to the UAE have the option of getting their VAT refunds for expenses incurred there. However, the program covers visitors who are not citizens of one of the GCC nations that have imposed VAT. Tourists who meet the requirements can request a refund of the VAT they paid on an item they bought while in the UAE. To be qualified for the program, the following prerequisites must be satisfied:
Required Documents and Forms
- Tax-free tags.
- Relevant tax invoices.
- Boarding pass (in cases of departure through the air or sea borders).
- Original valid passport or national ID card (based on the requirements to enter the UAE) – Copies are not accepted.
Procedures and Steps
- Purchase of goods eligible for a refund from retailers registered under the Tourist Tax Refund Scheme.
- Request tax-free tags from the registered retailers upon purchasing the goods.
- Provide identification documents such as a valid passport or national ID card (based on the requirements to enter the UAE).
- Collect the tax-free tags from the registered retailers.
- Present the tax-free tags and purchased goods at Planet’s validation desks in the exit points, if requested, or scan them at the kiosks available in the exit points, hotels, or shopping malls.
- Select the refund method (Credit Card or WeChat or Cash).
- Present the boarding pass for air or sea borders.
- Estimated Time to Complete Application by the FTA for Bank Card Refunds: 9 Days, and Cash Refunds: 3 Minutes
4- VAT Refund for foreign business visitors in UAE
VAT paid on expenditures incurred in the UAE may be refunded to foreign companies. Foreign enterprises from nations that provide VAT refunds to UAE corporations are eligible for the VAT refund program for business visits. Business travelers can get assistance from tax advisors in Dubai on how to use the VAT return program.
Use this service to apply for a repayment of VAT paid in the United Arab Emirates, UAE under the special scheme available to business visitors incurring costs in the country. This scheme is not available to those registered or required to be registered for VAT in the UAE or any others that do not meet the eligibility criteria.
Your application will be processed within 4 months of submission from receipt of a completed request. In certain instances, however, the FTA may require additional time to process your request and the FTA will inform you when this is required. If the request submitted is incomplete and the FTA requires additional information, you will need to provide the additional information and re-submit the application and once submitted the time process will reset.
Eligibility for Applicant
- You should not have a place of establishment or fixed establishment in the UAE or any implementing state.
- You should not be a taxable person in the UAE.
- You should be conducting business and be registered as an establishment with a competent authority in the country of establishment.
- You should be established in a country that provides refunds of VAT to entities that belong to the UAE in similar circumstances.
- The period of each refund claim is 12 calendar months for all countries in the MOF list except for GCC non-implementing states. You should be a non-resident tour operator.
- The minimum amount of VAT to be requested for a refund is AED 2,000.
5- VAT Refund for Non-Registered Importers in the UAE
As a non-registered importer or TINCO to claim a refund for the e-Dirham deposit provided to the FTA using VAT301 while importing goods under tax suspension
We review the application within 20 business days from the date of receiving a completed application. However, in such cases where additional information is requested, the applicant needs to provide such additional information within 60 calendar days and resubmit the application. Upon receiving the updated application with additional information, we may take a further 20 business days to respond. If the application is not resubmitted within 60 calendar days from the date the applicant received the notification from us, the application will be rejected automatically.
Who applicable
- You can request a refund if you are not registered for VAT and you do not have a valid Tax Registration Number (TRN).
- You have submitted a VAT 301 form for VAT payment.
- You have completed the duty suspension claims process with the relevant customs authority.
- One business day has passed since the approval of the claim by customs.
Where the goods were imported under tax suspension in relation to the following scenarios:
- Goods were imported under tax suspension and have been exported completely.
- Goods were imported under tax suspension and have been sold or used partially in the UAE
6- Tax Refund for UAE Nationals (New Residences)
UAE citizens who own or purchase land in the UAE and build their homes are covered by this program. These people can request a special FTA refund for the VAT they paid on specific building-related costs. However, only a UAE national who is a natural person may apply for the VAT refund scheme for dwellings, according to the FTA’s guidelines.
Therefore, corporate entities are not permitted to participate in the VAT Refund Scheme for New Residences Built by UAE Nationals. According to the plan, a dwelling is any building (including townhomes and villas) utilized as a natural person’s private habitation (UAE national). The home may also include furnishings that are its property and used in conjunction with it, such as kitchen and bathroom amenities and sleeping areas.
Eligibility of the applicant
- You must be a natural person who is a UAE national with substantiated supporting documentation.
- The building must be newly constructed and will be used solely as a residence of the applicant or the applicant’s family.
7- Tax refund for construction a Mosques
The requires of VAT recovery to construct a Mosque includes the following:
- The Donor must have incurred the VAT.
- The goods and services must have been acquired specifically for the construction of a Mosque.
- The Donor obtained and retains a Mosque Operation Commencement Certificate.
Any of the following conditions are met:
- The Mosque has been handed over, or is intended to be handed over by the Donor to any other person for whom the General Authority of Islamic Affairs and Endowments or the local authority concerned with Mosques’ affairs (“Competent Authority”) approved the handover of the Mosque to, unless the handover constitutes a taxable supply, or
- The Donor operates the Mosque in accordance with the approval obtained from the Competent Authority.
Eligible goods and services of VAT recovery
Provided it is incurred by the Donor before the Mosque becomes operational:
- Architecture design services for the specific Mosque.
- Engineering consultancy services.
- Contractors’ services.
- Tiles and sanitary ware.
- Mosque’s audio system and microphones.
- Lights.
- Carpets.
- Imam’s platform.
Mosque Operation Commencement Certificate
The Competent Authority will issue a Mosque Operation Commencement Certificate within 60 days from the Mosque’s date of completion and fulfilment of requirements. In instances where the Mosque was completed on or after 1 January 2018 and no Mosque Operation Commencement Certificate was previously issued, the Mosque Operation Commencement Certificate shall be issued within 60 days from the effective date of Cabinet Decision No. 82, i.e. within 60 days from 29 October 2022.
The Mosque Operation Commencement Certificate will contain the following information:
- Data related to the identity of the Donor, as determined by the Competent Authority in agreement with the FTA.
- Adequate information to identify the Mosque which was constructed by the Donor in accordance with the approval of the Competent Authority.
- The operation date of the Mosque.
- The date the Mosque Operation Commencement Certificate was issued, if different from the operation date.
- A confirmation that the Donor has completed construction of the Mosque in accordance with the conditions determined by the Competent Authority.
Process and timelines to request a refund
8- Tax Refund for operate a Mosques.
The requires of VAT recovery to operate a Mosque includes the following:
The Operator must hold a written permit from the Competent Authority allowing him to operate the Mosque, Any of the following conditions are met:
- That the operator incurred VAT: Provide proof that VAT has been paid as a supporting document for calculating purposes VAT refund amount, valid (correct) tax invoices will be accepted.
- The goods or services must have been acquired directly in connection with the operation of the Mosque and its maintenance for example, include the following:
- Water and electricity for the Mosque.
- Contractors’ services to repaint the Mosque.
- Architecture designs for the expansion of the Mosque (excluding any commercial annexures).
- Replacing the Mosque’s audio system and microphones.
- Cleaning and replacements of lights and carpets in the Mosque.
Note* “The Operator holds a written time-limited permit issued from the Competent Authority for the Operation of the Mosque during the period for which a Refund Request is made: In instances where a person other than the Competent Authority is permitted to operate a Mosque, the Competent Authority shall provide the Operator with a written time-limited renewable permit within 60 days from”: - The date the person takes responsibility for the Operation of the Mosque; or
- The renewal date of the permit.
- In instances where the Operator was not provided with the written permit before the effective date of Cabinet Decision No. 82 (i.e., 29 October 2022), the written permit shall be issued within 60 days of the effective date of the Cabinet decision No. 82, i.e., 60 days from 29 October 2022.
Process and timelines to request a refund:
