VAT Refund Services
VAT Refund Services
VAT compliance in the United Arab Emirates is considered to be a number of different activities in a taxable entity. This includes VAT registration and deregistration, VAT returns, voluntary VAT disclosures, VAT refunds and many other activities. A registered entity pays and collects tax on sales and purchases during a given tax period. Usually, the input VAT is higher than the output VAT and the business can then claim a VAT refund. Our Al Hayat Consulting and tax advisors provide excellent VAT refund services in Dubai, Sharjah, Abu Dhabi, Ajman and other Emirates.
What is a VAT Refund?
VAT refunds in the UAE are applied when the input tax is less than the output tax during the VAT refund filing period. Excess tax can be refunded to all registered businesses. The output VAT is the amount charged on sales, while the input tax is the amount paid to the supplier on purchases. In such cases, the taxable person must claim the VAT back from the relevant authorities.
Purpose of VAT refund
The FTA introduced VAT refunds in the UAE on 1 February 2018 in order to stabilize the national economy. VAT refund is a facility that allows taxpayers to recover the amount of tax they have overpaid. The law was introduced to stabilize retail spending and manage account cash flows.
Organizations covered by VAT refund in the UAE
The FTA defines certain conditions and requirements for taxpayers to claim VAT refunds in the UAE. There are a number of registered entities that are subject to corporate VAT refunds. The following entities
- Taxable persons
- Foreign companies
- Tourists and visitors
- UAE nationals are building new housing
- International organizations, foreign governments and diplomatic missions
VAT refund period
Upon submission of the application, the FTA’s response time for VAT refunds in the UAE is approximately 20 working days. However, if complex VAT refund applications take longer, the FTA will inform the applicant. During this time, the authorities will review and verify all information provided in the application. Taxpayers are informed by e-mail whether the FTA has accepted their application. Incorrect information is the most common reason for the delay or rejection of applications. If you choose a reputable VAT refund service in Dubai, you have a better chance of getting your refund without unnecessary delays.
How can I get a VAT refund in the UAE?
If a company pays more taxes than it collects from its customers, the taxpayer has two options to deal with the excess VAT in the UAE. The first one is that the taxpayer can apply for a VAT refund from the UAE regulatory authorities.
If the taxpayer does not wish to request a refund from the authorities at this time, the excess input tax can be carried forward to future tax periods and applied as an offset against the tax due, or the company can apply for a refund at a later date.
How can I claim a VAT refund in Dubai?
- The FTA has established a portal where VAT refund claims can be submitted along with certain supporting documents and information. The step-by-step process is explained below: –
- Firstly, log in to the FTA e-services portal using your registered email address and password.
- Then go to the VAT tab and go to the VAT Refund section. The ‘VAT refund request’ is displayed below.
- The VAT refund form is called the “VAT311 form” and you fill in the application form with the relevant correct information.
- After reviewing the information, you can submit your application by clicking on the ‘Submit’ button.
The authorities will inform you about the current status of your VAT refund in the UAE.
If the application is approved, the refund will be processed within 5 working days.
Check your balance under “My Payments” in the “Transaction History” section to verify the amount to be refunded.
Requirements for VAT311 form
To apply for a VAT refund in Dubai, you need to fill in the pre-filled application fields below. For example
- Tax Registration Number
- Remaining amount of eligible overpayment
- Amount you wish to refund (AED)
- Total amount of overpaid tax to be refunded (AED)
- Penalty for late registration (AED)
- Signature authority and declaration
Get expert VAT refund services in Dubai
Businesses operating in the UAE can avoid fines and penalties by ensuring their records are VAT compliant. Al Hayat Consulting and VAT consultants offer a remarkable and guaranteed VAT refund service in Dubai. Our team of tax experts will review, verify and calculate your input and output taxes, regardless of whether they are payable or refundable. They ensure that your company’s application package meets FTA standards. Certified advisors help you prepare and submit your VAT refund applications. Our experienced VAT consultants in the UAE assist businesses until they receive their VAT refunds from FTA. If you have any questions, please contact us today.
Stay updated on the latest developments in audit
Please provide us with your email to stay updated on the latest news and trends. Your personal information will be protected under our privacy statement.
