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VAT Refund Services in UAE
VAT Refund Services in Dubai, UAE
Most nations throughout the globe, including the UAE, impose a consumption tax on goods and services known as VAT. If your input VAT is higher than your output VAT while filing a VAT return in the UAE, you are qualified to obtain an FTA VAT refund. Assured VAT refund services in Dubai, UAE are provided by HayyaTax
Experienced VAT consultants from HayyaTax are employed in the UAE to review the periodic files of corporate taxpayers across a range of sectors. Our expertise will help you obtain a VAT refund in Dubai from the FTA.
VAT Refund Services in Dubai, UAE
VAT Refund in UAE
When the input tax is greater than output tax on a VAT return, the Taxable Person is able to request for a VAT refund. The same can be initiated through VAT 311 form available in FTA portal.
The tax registrants can initiate the refund request either at the time of filing the VAT return or after submission of VAT returns.
Is there any time limit applicable for requesting FTA VAT Refund in UAE?
No. There is no limit specified by the Authority to make the refund request. Hence, tax registrants can apply for the refund at any point of time till there is a credit owed to them.
Timeframe for VAT Refund
Where the Taxable Person makes a claim for a refund of excess refundable tax, the Federal Tax Authority will review the same within 20 business days and notify the Taxable Person of its decision to accept or reject the refund claim. The Federal Tax Authority may notify the applicant that it requires a longer period than (20) business days to consider the application where appropriate. Once the VAT refund claim is approved, the amount will be refunded within 5 business days.
What are the documentation requirements for a VAT refund in UAE?
- VAT refund application form (Microsoft Excel format).
- 5 highest tax invoices from Standard Rated Expenses (in term of values).
- 5 highest official and commercial documents related to zero rated supplies (in term of values)
- 5 highest tax invoices related to Sales and other and outputs (in term of values).
- IBAN Validation Letter.
What is IBAN Validation Letter
IBAN represents the International Bank Account Number. This letter must be issued and stamped by the applicant’s bank and includes details about the account holder’s name (must be the same as the taxable person’s name as registered with the FTA), bank’s name, bank’s address, SWIFT/ BIC and the IBAN. The letter/ certificate shall be uploaded as an attachment to the refund application.
Submitting a VAT Refund Claim in UAE
To submit a refund claim:
- Log in to the FTA’s e-Services portal.
- Go to the VAT tab, then the VAT Refunds tab, and access the form by clicking VAT refund request.
- Complete the form. Some of the fields are pre-populated using the details from your account. Make sure that the details you’ve entered are correct, then submit the form by clicking ’Submit’ with workings and relevant supporting documents.
How can we track the status of VAT Refund Application in UAE?
Status | Explanation |
Pending | Once the details are submitted, the form will transition to this state until the FTA processes the application. |
In Progress | The FTA has started the review of the refund application. |
Resubmit | The FTA requires more information about the refund application submitted. The details of the information have been sent to the e-mail address of the Authorized Signatory. The FTA may also leave comments for your action on the Form. The tax registrant has to reply with necessary documents/comments within five (5) working days. |
Reviewed | The Authority reviewed the refund application and initiated the payment of VAT refund amount to taxable persons’ bank account. |
Approved | The status will change from “reviewed” to “Approved” on successful receipt of VAT refund amount to taxable persons’ bank account. |
Reject | If the Refund Application Form has been rejected, the Form will transition to the “Reject” state. |
Whether a VAT refund request can be rejected by FTA?
Yes. FTA has the right to reject the refund request if you did not comply with the below: –
- No response to additional requirements (if any) within 5 working days.
- Incorrect attachments.
- Unmatched summary with related VAT returns filed by the applicant.
FTA VAT Refund Services in UAE: HowHayyaTax Assists?
HayyaTax has a squad of VAT experts in the UAE who can support you through the VAT refund application procedure. Our professionals have in-depth expertise and a breadth of experience in all the service areas that we offer, including VAT Refund in Dubai.
Frequently Asked Questions
When will I receive the VAT refund that I claim?
If you are in a repayment position (so that the value of recoverable input tax exceeds the value of output tax due) you may carry forward excess recoverable input tax and offset this against any payable tax or administrative penalties imposed.
Alternatively, you can request the refund of any excess recoverable amounts. This is done by answering “Yes” to the box at the end of the return dealing with refunds. If you do this, you will be directed to the VAT refund application page.
The FTA will inform you that any refund claim that you make has been approved or rejected within 20 working days. However, where necessary, the FTA may inform you that consideration of the claim will take longer than that.
Is there any limit regarding the refund amount that can be requested from FTA?
No.
Can I refund the extra Payments made to the FTA?
Yes. The extra payments can be refunded by providing the relevant supporting documents to the authority.
How quickly will refunds be released?
Refunds will be made after the receipt of the application and subject to verification checks, with a particular focus on avoiding fraud or erroneous claims.
Is there any time limit for claiming the refund from the authority?
The tax registrants can apply for the refund at any point of time till there is a credit owed to them.
Can I apply for VAT refund against multiple VAT return periods in a single refund request?
The tax registrant can request VAT refunds for multiple VAT return periods by a single request. FTA has prescribed an excel format which allows the taxable persons to incorporate details for multiple VAT return periods.
Can I carry forward and adjust the excess refund lying in the FTA portal against the future tax payables?
Yes. A taxable person can adjust the excess refund lying in the FTA portal against future VAT payables.
Do I need to incorporate all the VAT returns (payable & refundable) details in excel format for availing the excess refund in the FTA portal?
A taxable person is required to submit only the VAT returns with “Refund” position to avail the refund amount from the authority.
Can I submit a refund request against previously rejected applications by the authority?
Yes. Rejection from FTA normally happens when a tax registrant is not submitting the additional requirements/not responding to the queries raised by FTA. A tax registrant can reapply for the same quarter once all the requested information/documentation are available to avoid further rejections.
What needs to be done if the “New Tax refund” tab for submitting the refund request is not appearing in the FTA portal?
This can be due to two reasons:
- Technical glitches – which can be solved through contacting call center of the FTA
- VAT refund request already in progress – tax registrants must wait for the action from the FTA for the currently submitted refund request.
Get your VAT Refund in the UAE—fast and straightforward!
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Frequently Asked Questions on VAT Refund in UAE
In the UAE, VAT refunds are available for:
Tourists who meet the Federal Tax Authority (FTA) requirements.
Businesses registered in a GCC country where VAT is not implemented.
UAE businesses eligible for VAT refunds on specific expenses, such as exports and designated free zone transactions.
Foreign businesses that qualify for the VAT refund scheme for non-resident entities.
Tourists can claim VAT refunds through the electronic Tax Refund Scheme. To be eligible:
The purchase must be from a registered retailer under the Tax Refund Scheme.
The tourist must depart the UAE within 90 days of purchase.
The refund process is completed at designated airports, seaports, and land borders using self-service kiosks.
UAE businesses can apply for VAT refunds if:
They have incurred VAT on business-related expenses.
They are registered for VAT with the FTA.
They submit a VAT refund request through the FTA e-Services portal within the specified refund period.
Non-resident businesses can claim a VAT refund if:
They are from a country that offers VAT refund reciprocity with the UAE.
They do not have a permanent establishment in the UAE.
They have incurred VAT on eligible business expenses.
The application is submitted within the refund claim period through the FTA portal.
The VAT refund process typically takes:
For tourists: Instant refunds at self-service kiosks.
For businesses: Refunds are processed within 20 business days after submission, subject to FTA approval.
For non-resident businesses: The refund can take up to 6 months, depending on document verification.
Tourists can claim VAT refunds at major airports, seaports, and land borders, including:
Dubai International Airport (DXB)
Abu Dhabi International Airport (AUH)
Sharjah International Airport (SHJ)
Land borders with Saudi Arabia and Oman
Seaports such as Port Rashid and Zayed Port
Not all purchases qualify for VAT refunds. Ineligible items include:
Services like hotel stays and entertainment.
Goods that are not exported from the UAE within 90 days.
Items without a valid tax invoice from a registered retailer.
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