Claim VAT Refund in UAE for A Business

VAT refund in UAE for A Business is a process through which businesses operating in the UAE can claim a refund of VAT from the Federal Tax Authority. In UAE, if the input VAT paid is greater than the output VAT recovered, then the business is eligible for a VAT refund. This article will give you an insight into how you can claim your VAT refunds in the UAE if you are eligible for the same. VAT Registration UAE has a team of skilled VAT advisors who can assist you in ensuring that your VAT refund claims are submitted on time, in compliance with VAT regulations.

How to Claim VAT Refund in UAE for A Business

VAT refund in the UAE is supposed to be filed by the taxable persons or businesses in the UAE. In other words, if you want to file a VAT refund claim you must be a taxable person in the UAE.

The VAT refund summarizes the VAT that is due for the tax period. If the input tax is greater than the output tax on a VAT refund, the taxable person is eligible to request a tax refund. This is claimed after the submission of the VAT refund or at any time later when there is credit owed to them.

To claim VAT Refund in UAE you need to submit and complete the “Form VAT311” for a VAT refund

The surplus balance will be refundable VAT if the input VAT is higher than the output VAT.

When you have refundable VAT you have two options:

  1. Request a VAT refund.
  2. Carrie over the extra tax that can be recovered to subsequent tax years and may be applied to offset any unpaid taxes and penalties.

Read Also: VAT Refund In UAE For Business Visitors

Timeline for VAT Refund in UAE for A Business

The FTA will process and review a taxpayer’s request for a VAT refund within 20 business days of receiving it. The taxpayer will be informed if the claim is approved or denied by the FTA. If the procedure takes more than 20 days, the FTA will let the taxpayer know about the extension of the deadline. To ensure timely refund filing of VAT, it is advisable to consult VAT experts in the UAE for the same.

Details to be put in the form for VAT refund in the UAE

VAT refund form has the following fields that requires to be filled:

  1. TRN (Tax Registration Number): The data in the taxpayer’s account under the User Profile tab is used to pre-populate this entry.
  2. Excess refundable tax amount total (in AED): Based on the equation Refunds – Penalties Excess Refundable Tax, this field is already filled up. This includes all refunds noted in previously submitted VAT refunds as well as all outstanding administrative fines other than the late registration fine.
  3. Your requested refund amount (in AED): The amount you provide must match or be less than the total amount of excess refundable tax that is shown in the corresponding field.
  4. Excess Refundable Tax Eligible Remainder: The amount of refundable tax that you are eligible for in the future is already pre-populated in this section.
  5. Amount of the late registration fine (in AED): Based on the fines levied against you and whether you have paid the penalty amount or not, this form is already filled in:
  • If you are exempt from VAT fines and penalties, zero (AED) will appear in the field.
  • If a VAT penalty has been assessed against you and you have already paid it, the field will say Zero (AED).
  • The field will show the penalty amount if you have been charged a VAT penalty but have yet to pay the sum when requesting this refund. After deducting the penalty amount, if the refund amount is negative, your application will be automatically refused. Only the remaining amount will be sent to the FTA for refund claim purposes if the refund amount is positive after deducting the penalty amount.

Read More: Steps To Get VAT Refund For Tourist In UAE

  1. Declaratory and Authorized Signatories: The system has already entered the authorized signatory in both English and Arabic. Before checking the Yes box to submit the form, carefully read the declaration.

Procedure for Claim VAT Refund in UAE for A Business

The procedure to claim a VAT refund in the UAE is a step-by-step process. The procedure to submit a VAT refund in Dubai is explained below:

Making a claim for a VAT refund is as follows:

  • Access the FTA’s e-Services website. Click here.
  • Select the VAT tab, then the VAT Refunds tab, and then click VAT Refund Request to open the form.
  • Fill out the form. Information from your account has already been used to fill in some of the fields. Before pressing “Submit” to transmit the form, make sure the data you’ve entered is correct.
  • The FTA will email you once you submit the form to let you know the outcome of your request for a refund. The reimbursement will be processed five business days after the claim is approved.
  • You can verify the refund amount by looking up your balance from the My Payment option in the Transaction History section of the e-Services portal.

Avail the expert services of “VAT Registration UAE”

Our team at VAT Registration UAE is equipped with well-trained and experienced VAT consultants in the UAE. They will help you file your refunds on time and will also help you keep your VAT-related transactions and accounting systems in line with the rules laid by the Federal Tax Authority. Thus, Taxable Persons are advised to seek the expert services of VAT Registration UAE. Contact us today and we shall be glad to assist you.