The UAE government has published a VAT refund scheme which enables businesses/ business visitors to claim the VAT paid on the purchase of goods and services incurred in UAE.
A non-government foreign business may obtain a refund on VAT paid in UAE by submitting the refund request for business visitors as prescribed by the Federal Tax Authority.
A foreign business visitor can claim for input tax based on the fulfilment of the below-mentioned requisites:
|Refund request period||12 Calendar months|
|The due date for Refund request for 1/1/2018-31/12/2018||the request should be made from 1st April 2019 to 30th September 2019 (6months)|
|The due date for Refund request in subsequent calendar years||the request should be made from 1st March-31st August 2019 (6months)|
|Amount of Refund||The minimum claim should be 2000 AED|
|Business visitor||Should be from an approved list of countries with reciprocal arrangements mentioned below.|
Below mentioned are the details required for submission of a refund request -
The Tax Invoice required for refund application is the original Tax Invoices, no simplified Tax Invoices are eligible to claim input tax.
Following are the mandatory requirements in the Tax Invoice Invoice number: Unique number for identification of each separate Tax Invoice; Invoice date: Date of issuing the Tax Invoice;
Invoice item: Description of the supply;
Supplier’s name: Registered name of the supplier;
TRN: Tax registration number with the Federal Tax Authority;
The below-mentioned guidelines issued by the authority with regard to refund request submission are as mentioned below:
In the case of a company that has the multiple numbers of branches, the Refund is only available to the branch(es) which is/are established in a country with a reciprocal arrangement in place. Refunds will only be paid to a bank account in the eligible country and the bank account must be in the name of the applicant / Foreign Business.
Below mentioned is the list of countries approved for the VAT refunds for Business Visitors with the reciprocal agreement as of September 2019. Following are the fully applicable country lists-
|Isle of Man|
|The United Kingdom|
Below mentioned countries have certain exceptions to the full applicability of the refund scheme discussed above. They are -
|Lebanon -||Applicability of refund scheme in certain circumstances, which will be issued later.|
|Namibia -||As per the latest released notification, it is understood that the refunds are only available for business goods that are exported and not for services consumed in the UAE.|
|South Africa -||The refunds are only available for expenses relating to goods that are exported from a designated UAE port within 90 days and do not apply to services.|
If the visitor is from a country not in the above list or does not have a VAT system, it is required by the visitor to contact the Ministry of Finance of the respective country, which would have to contact the UAE Ministry of Finance for inclusion in the approved list.
Emirates Chartered Accountants Group provides VAT Services in all the Emirates of UAE & Bahrain. The Tax Department has practical experience of implementing VAT in UAE for more than 1000 businesses across UAE in different industries of the region.
Mr Pradeep Sai
+971 – 556530001
+971 – 558892750
+971 – 508873115