VAT Refund for Business, Individual and Tourist in Dubai, Abu Dhabi, RAK, Sharjah, Ajman, UAE
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VAT Refund in Dubai, UAE
The Federal Tax Authority (FTA) UAE has created several refund programs since the UAE implemented VAT in 2018 to benefit groups of people and Businesses. The VAT they paid on purchases in the UAE may be refunded to qualifying individuals even though they are not taxable persons in the UAE. Foreign visitors to the UAE and enterprises from other countries may benefit from some of the VAT refund schemes by the FTA. In addition, certain programs are targeted toward populations, such as UAE citizens, international governments, and organizations.
Entities must adhere to rules set by the Federal Tax Authority (FTA) in order to use these schemes. It might be difficult for applicants to comprehend the rules and circumstances of the plan, but speaking with Tax Agents in Dubai, UAE will make the process easier. The following is a list of unique VAT refund programs in the UAE
VAT Refund for registrant’s business 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.
Estimated 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
Refund for Excise Tax (Access Amount) in Dubai, 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 can Apply
- 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.
VAT Refund for Tourists in Dubai, 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
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.
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 can Apply
- 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
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.
Tax refund for construction of Mosques
Through this service, Donors can apply for a refund on constructed mosques after the first of January 2018 (01/01/2018)
Terms & Conditions
- The Donor has incurred Input on goods or services directly in connection with
the construction of the Mosque.
- The construction was approved by the Competent Authority.
- The Donor has a Mosque Operation Commencement Certificate.
Any of the following conditions is to meet
- The Mosque has been handed over or is intended to be handed over by the
Donor to any other Person for whom the Competent Authority has approved the handover of the Mosque, including the Competent Authority itself unless the handover is a Taxable Supply.
- The Mosque is operated by the Donor as per the approval obtained from the Competent Authority.
To reimburse foreigners, Businesses, and UAE citizens for the VAT they paid on goods made in the nation, the UAE has created several VAT programs. It might be difficult to comprehend the conditions and the demands of these strategies. VATBOX Tax Agency may advise the applicants on how to claim a refund of the VAT/Tax they paid on their costs by using VAT Refund Services in UAE.