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VAT Refund Services

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VAT refund services

In the United Arab Emirates, VAT compliance is considered a range of different activities in a taxable business. This includes VAT registration and deregistration, VAT returns, voluntary VAT disclosures, VAT refunds, and many other activities. A registered business pays and collects tax on sales and purchases during a given tax period. Often its input VAT is higher than its output VAT, and the business can then claim a VAT refund. Our Bestax chartered accountants 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 apply when the input tax is less than the output tax during the VAT return filing period. The excess tax is refundable to all registered businesses. The output VAT is the amount charged on sales and input tax is the amount paid to the supplier on purchases. In such circumstances, the taxable person must claim the VAT back from the relevant authorities.

Purpose of the VAT refund

The FTA introduced VAT refunds in the UAE on 1 February 2018 in order to stabilize the national economy. VAT refunds are a relief for taxpayers to credit the amount of overpaid tax. The law is being introduced to balance retail spending and manage account cash flows.

Entities covered by VAT refunds 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 institutional VAT refunds. The following entities:

  • Taxable persons
  • Foreign companies
  • Tourists and visitors
  • UAE nationals building new residences
  • International organizations, foreign governments, and diplomatic missions

VAT refund period

After submission of the application, the timeframe for the FTA to reply on VAT refunds in the UAE is almost 20 working days. However, if complex VAT refund applications take longer, the FTA will inform the applicant. During this period, the authorities will review and verify all the information provided in the application. Taxpayers are informed by e-mail whether the FTA accepts or rejects their applications. 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 receiving your refund without unnecessary delays.

How do I get a VAT refund in the UAE?

If a company pays more tax than it collects from its customers, the taxpayer has two options for dealing with the excess VAT in the UAE.

The first is that the taxpayer can apply for a VAT refund from the UAE regulatory authorities.

If the taxpayer does not wish to claim a refund from the authorities at this time, the excess input tax can be carried forward to future tax periods and applied as a set-off against the tax due or the company can appeal for a refund at any later date.

How can I claim a VAT refund in Dubai?

  • The FTA has set up a portal where VAT refund claims can be submitted together with certain supporting documents and information. The step-by-step process is described below:-

    First, log in to the FTA e-services portal using your registered email and password.

  • Then go to the VAT tab and navigate 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 correct related information.
  • After reviewing the information, you can submit your application by clicking the ‘Submit’ button.

The authorities will inform you of 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 Payment” in the “Transaction History” section to verify the amount to be refunded.

Requirements for the VAT311 form

To apply for a VAT refund in Dubai, you need to fill in the following pre-filled application fields. For example:

  • Tax Registration Number
  • The remaining amount of the eligible overpayment
  • The amount you wish to refund (AED)
  • The total amount of overpaid tax to be refunded (AED)
  • Penalty for late registration (AED)
  • Authorized signatory 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. Bestax chartered accountants and VAT consultants provide a remarkable and guaranteed VAT refund service in Dubai. Our team of tax experts review, verify and calculate your input and output tax whether it is payable or refundable. They ensure that your company’s application package meets FTA standards. Certified consultants help you prepare and submit your VAT refund applications. Our experienced VAT consultants in the UAE assist businesses until they receive their VAT refund from the FTA. If you have any questions, please contact us today.

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