VAT Refund
Al-Hisab Tax Consultancy offers reliable VAT refund services in the UAE for both businesses and tourists, helping you quickly claim VAT refunds. You can claim a VAT refund when your input VAT exceeds your output VAT. Output tax is the VAT imposed on sales, while input tax is the VAT collected on purchases, expenses, and imports.
VAT Refund is the process through which businesses or tourists can reclaim the VAT paid on goods and services purchased in the UAE or other countries. Foreign businesses or tourists who are not VAT-registered in the UAE can claim a refund if they meet certain conditions and follow the prescribed procedures.
To be eligible for a VAT refund, the purchase must be made by a non-resident who is not VAT-registered in the UAE or other countries, and the goods or services must be for personal use or core business operations.
Tourists must spend a minimum of AED 250 to qualify for a VAT refund, and the goods must be exported within 90 days of purchase. The maximum VAT refund a tourist can claim is AED 35,000.
Options for VAT Refund
The taxpayer has two options for handling excess input VAT, commonly known as a VAT refund:
- The taxpayer can apply to reclaim the excess input VAT.
- If the taxpayer does not request a refund, the excess input VAT can be carried forward to future tax periods. This excess VAT can be used to offset against future payable tax and/or penalties, or the taxpayer can apply for a refund later.
Document Required for VAT Refund Services
To claim a VAT refund through VAT refund services, foreign businesses and tourists typically need to provide the following common documents in the UAE:
- VAT Refund Application Form: A completed and signed form for requesting the VAT refund.
- Original Invoices/Receipts: Proof of purchase that clearly shows the VAT paid on goods and services.
- Proof of Export: Documentation showing that the goods were exported from the UAE, such as shipping documents or export certificates.
- VAT Registration Details: For businesses, the VAT registration certificate or number; or tourists, a passport copy or other identification.
- Boarding Pass or Airline Ticket: Proof of travel, such as a boarding pass or airline ticket, to show you are leaving the country.
- Bank Account Details: Information for the refund transfer, including bank account details.
- Proof of Non-Residency: Documentation to confirm that you are a non-resident if applicable.
- Proof of Use: Evidence that the goods or services were used for personal or business purposes, depending on the claimant.
- Customs Declaration (if applicable): A customs declaration or proof of entry/exit for exported goods.
Hisab has the most reliable VAT consultants in the UAE who can help you organize your documents and process VAT refunds effectively.
VAT refund services in the UAE include assessing eligibility, preparing and reviewing necessary documents, submitting them to the FTA, following up with authority, and reconciling the VAT refund received. With the assistance of our VAT consultants, your business can ensure a hassle-free and compliant VAT refund process.