How to Claim VAT Refund in UAE?

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How to Claim VAT Refund in UAE?
3 Min Read

Every business in the UAE must file a VAT return upon furnishing the sales, purchases, input, and output VAT details during the relevant tax period. Output VAT is the amount collected on sales, and input VAT is the amount paid to the supplier when making a purchase. The eligible VAT amounts are adjusted against each other – and once adjusted, there will be two situations: VAT Payable (which means if the output amount is higher than the input amount – the balance will be payable to the FTA) and VAT Refundable (which means if the output VAT is lesser than the input VAT amount – the balance will be refundable.

How can you claim this VAT refund in UAE? Let’s take you through the process.

  • Login to the FTA’s e-service portal, and select the VAT Refunds tab, the process has been simplified to undertake this service.
  • Once you click on the VAT refund request – there is a form that needs to be completed with the correct details. Once submitted, the FTA will notify you on the refund application.
  • Once the claim is approved – the refund is processed within 5 business days.

However, to gain the maximum tax benefits – it’s best to consult with a tax advisory firm – especially for VAT refund during the Expo 2020 – it’s best to have an advisor on board to help you with maximum gains. Depending on the business and claims – you can choose to carry forward the recoverable tax to subsequent tax periods to offset against payable tax or apply for a refund later. To understand the process in detail – you can get in touch with PKF UAE, a firm with an in-house team of expert tax professionals and consultants who have experience of working in various tax regimes, and given how complicated this can get, businesses must take an expert opinion before submitting a VAT refund form.