VAT Alert: FTA Starts Accepting Refund Requests for Operating Mosques in UAE

The UAE allows taxable persons to claim a refund on the VAT incurred on the Operation of Mosques as per Cabinet Decision No. (82) of 2022. The FTA will refund the tax VAT paid on any supply or import made by a person or class of persons listed in the Cabinet Decision and will provide a special refund mechanism for eligible persons operating a Mosque. In the latest development, the Federal Tax Authority (FTA) recently announced that it has started accepting refund requests for VAT incurred on operating mosques via its EmaraTax digital tax services platform.

The following blog will provide you with key information on claiming the tax incurred on operating mosques. Tax agents in Dubai can help you make a request for claiming the VAT incurred on operating mosques in the UAE. Read ahead for further insights:

What are the deadlines for making the requests?

According to FTA, in connection to the requests to refund VAT collected on operating mosques, the Cabinet Decision specified the period from April to September 2023 where the FTA will receive tax refund requests on the operation of mosques that began operating before January 1st 2022, covering the years 2018 to 2022.

Meanwhile, between October and December 2023, the FTA will receive VAT refund requests on the operation of mosques that began operating on or after January 1st 2022, covering the year 2022. Operators of the mosques must submit the refund requests within the set deadlines, in accordance with the date when the mosque in question started being operated by the applicant who submitted said request. You can consult with VAT consultants in Dubai who can help you file the request with the FTA through the EmaraTax platform.

Who is eligible for the VAT Refund in the UAE?

Operators of mosques are eligible to apply for a refund on the VAT incurred on goods and services incurred directly in connection with the operation of the Mosque. However, the operator needs to provide all the relevant requirements. The following are the key requirements to request a refund on VAT incurred on operating mosques:

  1. A written permit from the Competent Authority allowing the operator to operate the Mosque
  2. The Operator must have incurred the VAT
  3. The goods or services must have been acquired directly in connection with the operation of the Mosque and its maintenance
  4. The Mosque must be registered as a Mosque with the Competent Authority
  5. The Operator holds a written time-limited permit issued from the Competent Authority for the Operation of the Mosque during the period for which a Refund Request is made

Verification and Audit process for VAT Refund

Those who submit the VAT refund requests in the UAE must know that the FTA may verify the eligibility of the Operator to recover the VAT incurred on the qualifying goods and services and audit the submitted supporting documents. The verification and audit procedures may, for example, include the following:

  • Verifying whether the Operator is eligible to submit a refund request in respect of VAT incurred on the Operation of the Mosque.
  • Verifying the amount of input tax paid by the Operator based on the supporting valid tax invoices and proof of payment
  • Requesting further information to determine the particulars of the supplies to ascertain whether the VAT incurred on the goods and services was incurred directly in respect of the Operation of the Mosque

Consult with the Best Tax Agents in Dubai, UAE

Applying for a refund of VAT incurred in the UAE can be complex for businesses as it is tough for them to crack the terms and conditions put forward by the FTA. However, the process can be made simple by consulting with tax agents in Dubai such as Jitendra Chartered Accountants (JCA). We are one of the top VAT consultants in Dubai with over 20 years of experience. JCA can provide robust tax services in Dubai such as VAT accounting, VAT returns filing, VAT refunds etc. Talk with us if you need any help on any tax-related matters.