The UAE imposes a consumption tax (indirect tax) on goods and services known as Value Added Tax (VAT). The VAT in the UAE was introduced on January 1st 2018, which marked a paradigm shift in the country’s tax landscape. Businesses can obtain a VAT refund in the UAE if their input VAT is higher than the output VAT while filing the VAT returns.
Jitendra Chartered Accountants (JCA) and its associate Jitendra Tax Consultants (JTC) provide the best VAT refund services in Dubai, UAE. Our expertise and experience can help you simplify the process of getting a VAT refund in Dubai from the Federal Tax Authority (FTA).
VAT Refund in the UAE
When the input tax is greater than the output tax, taxable persons can request for VAT refund through the VAT 311 form available on the Federal Tax Authority (FTA) Website. The request for VAT refunds can be made either at the time of VAT return filing or after submitting the VAT returns to the FTA. We are registered tax agents in the UAE and we can help you with VAT refund services.
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VAT Refund Timeframe in the UAE
The FTA will review the tax refund claim application within 20 days and notify the taxable person of its decision. FTA can either accept or reject the claim for the VAT refund. If the FTA requires more time to review the application, it will notify the applicant about the same. If approved, the FTA will refund the amount within five business days.
What Documents are Required to Claim a VAT Refund in UAE?
Our VAT refund services in Dubai can help businesses effectively manage the VAT refund documentation challenges. The following are the documents required for tax refunds in the UAE:
- VAT refund application form
- Highest tax invoices from Standard Rated Expenses (in terms of values).
- Highest official and commercial documents related to zero-rated supplies (in terms of values)
- Highest tax invoices related to Sales and other outputs (in terms of values).
- IBAN Validation Letter.
How do I Claim My VAT Refund in the UAE?
Hiring the best VAT refund services in Dubai such as JCA is the best way to simplify the process of VAT refunds. We are one of the leading FTA-registered tax agents in the UAE and we can help you apply for the tax refund. The VAT refund procedure is listed below:
- Log into the Emaratax account dashboard
- Type the VAT or Excise Tax tab as the case may be
- Access VAT311 (for VAT) or EX311 (for Excise Tax)
- Fill in the UAE VAT refund form and submit the refund request
How JCA’s Tax Services in Dubai can help you with Tax Refunds?
JCA provides reliable tax services in Dubai for businesses seeking FTA VAT refunds. Our VAT refund services consist of:
- Identifying eligible expenses: We will examine your company’s expenses to identify those that are eligible for FTA VAT refunds. We will also identify the costs associated with exempt or zero-rated supplies.
- Claims preparation and submission: Our VAT advisers in Dubai will help you prepare and submit the VAT refund claims to the FTA.
- Representation before the FTA: Our VAT consultancy services in Dubai come in handy in case of disputes or challenges to your refund claims.
Frequently Asked Questions (FAQs)
What happens If I fail to claim the VAT refund?
Those who do not wish to claim refunds can carry forward the excess input tax to subsequent periods. You can use it for adjustment with payable taxes and penalties.
What are the grounds for rejecting a VAT refund application?
FTA may reject your tax refund application on the following grounds:
- Incorrect attachments
- You fail to respond to the FTA’s request for additional requirements within five working days.
- Your VAT returns do not match the summary in the VAT refund claim form.
How quickly will refunds be released?
FTA will release the refunds after receiving the application and subject to verification checks. The focus will be on avoiding fraud and wrong claims.