How to claim VAT refund in UAE

Rajinder Nagiyal

October 24, 2023

VAT

How to claim VAT refund in UAE

After filing their VAT return, the taxpayer may ask for a VAT refund if the input tax on their VAT return is more than the output tax.

Meaning of VAT Refund

All companies with FTA registrations must submit a VAT refund with information on all sales and purchases made during the tax period.

Input VAT is the sum that is paid to the supplier for purchases or expenses, while output VAT is the sum that is collected from sales.

The agreed input VAT amount may be adjusted to align with the output VAT amount as needed. Changes to the input VAT and output VAT will have one of the following effects.

VAT Payable

The remaining VAT must be paid to FTA if the input VAT amount is less than the output VAT.

VAT Refundable

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

Refund Schedule for VAT

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. The FTA will also notify the taxpayer about the extension of the deadline if the process takes more than 20 days.

UAE VAT Refund Form

The fields on the VAT refund form includes::

Tax Registration Number (TRN)

The data in the taxpayer’s account found on the User Profile tab is used to pre-populate this column. It is advised to verify that the right TRN is specified.

Total Excess Refundable Tax Amount (in AED)

The formula: Refunds – Penalties = Excess Refundable Tax is used to fill up this field. This includes all refunds noted in previously submitted VAT returns as well as all outstanding administrative fines other than the late registration fine.

Your requested return 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.

Total amount of refundable tax in excess

The amount of refundable tax that you’re eligible to apply for in the future is pre-populated in this area.

Fine for late registration (in AED)

Content in this field is based on the fines levied against you and whether you have paid the penalty amount or not:

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 display zero (AED).
The field will show the penalty amount if you have been charged a VAT penalty but have not yet paid the sum when requesting this refund.
Your application will be automatically refused if, after deduction of the penalty amount, the refund amount is negative
Only the balance displayed on your dashboard is due if the refund amount is positive after deducting the penalty amount.

Signatory and Declaration

English and Arabic are the accepted languages for authorised signatories. Ensure you read the content in the declaration very well before you tick yes and proceed to submitting the form.

How to Apply for VAT Refund for Businesses in the UAE

Access (log in to) the FTA’s e-Services website.
Click the VAT refund request to access the form by selecting the VAT tab, followed by the VAT Refunds tab.
Fill out the form.

Note: Some of the fields have already been filled in with information from your account. Verify that the information you have provided is accurate before clicking “Submit” to send the form.

The FTA will send you an email to let you know the outcome of your refund application when you submit the form.

Within five business days of the claim being approved, the reimbursement will be processed.

Do you want to confirm the refund amount? You could check your balance by clicking the My Payment tab found in the Transaction History section of the e-Services website.

UAE VAT Refund Services

Taxable companies in the UAE are receiving help from RSN Finance to claim their VAT refunds.

We provide the best services for VAT refunds.

VAT refund forms/ requests are being submitted by our VAT specialists to the FTA in line with the regulations and correct format of the Federal Tax Authority (FTA).

To get the VAT refund money back as soon as possible, we make sure VAT compliance is met.

Tip: Claiming a VAT refund in the UAE is a very complicated process. Businesses should therefore consult with VAT experts like us before submitting a form for a VAT refund.

We are leading Accounting firm in Dubai- Business Bay ,we provide the best services for VAT refunds in the UAE!