How to get VAT Refund in UAE?

A VAT Refund is a financial mechanism that enables firms in the United Arab Emirates to retrieve the Value Added Tax that they have paid on their company expenses.This is especially relevant when the VAT paid on purchases (also called input tax) is higher than the VAT received on sales (also called output tax). Businesses can apply for refunds through an online site run by the Federal Tax Authority (FTA), which streamlines the process. Application materials must include a valid tax registration number (TRN), tax invoices, and a signatory's consent. This technique aims to reduce tax burdens for companies and improve cash flow management.

Why should you Claim VAT Refund in UAE?

For businesses, claiming a VAT refund in the UAE is a wise financial decision. They can recoup the excess VAT they spent on their expenditures and purchases, which often exceeds the VAT they get from sales. This procedure guarantees that firms have more financial resources available for operations and investments by improving cash flow and reducing total company expenses. By reclaiming this excess VAT, companies can maintain better financial health and reinvest in their growth and expansion. One of the main advantages of the UAE tax system is that it aims to strengthen the financial operations of companies that are based there.

VAT Claim Refund - Procedures

Log into the EmaraTax

• Login to the EmaraTax account using your  username and password or UAE Pass.
• Click the "Create an account" button to create an EmaraTax account if you don't already have one. 
• You will be redirected to a User Dashboard once you have logged in using your credentials

Request for VAT Refund form

• Select "Taxable Person" as the user type. Next, press the "Proceed" button. To view the Home page, click the View button.
• Tax Agencies' and 'Tax Agents' are further options. as well as "Special Refunds," if applicable.
• You need to choose the VAT Module from the sidebar on the left. 
• To initiate a fresh VAT Refund Request, select New. This displays all of your prior VAT refund requests.The Refund request can be edited by clicking the ellipsis.
• To start the refund process, select 'New Refund Request'.
• Click "Next" after you have verified that you understood and read the terms and conditions.
• To continue with the refund request, click the Start button

Fill up the necessary VAT Refund details

• Before submitting the form, double-check the bank details.
• Submit the amount of the refund.
• To see the associated VAT Refund, click "Add Supporting Details".
• Once you've chosen "Download Template," complete the form and upload it.
• To upload the needed document, click the add button. The button becomes green when the document upload is successful.
• The transaction information can be added by clicking the "add transaction" button. Click "Add Transaction" after that.
• Click the "Save and Back" button to save.
• The completed Refund Request will appear after you click the "Next" button. Before submitting it, you can review it.
• Agree to terms and submit refund by clicking "Submit, and note your application number for future reference.
• On successful submission of the form, you will get the acknowledgment for submission, approval or rejection notification

When will you get the VAT refund?

Following the application submission date, FTA will typically examine, process, and inform you within 20 days. The VAT refund claim is either approved or denied by the authority. After your claim is accepted, the authority will credit the refund within five business days.

However, To process the VAT refund application and notify you, FTA may need more than 20 days.

VAT Refund for Tourists

When leaving through UAE International Airport, tourists are eligible to collect the VAT they paid on their purchases .GCC nationals are qualified under the current restrictions because Tax-Free Shopping is available to everyone who isn't a resident of the United Arab Emirates.

It is tax-free to purchase goods in the UAE for export, subject to certain restrictions and requirements. Consumers who verify their purchases in accordance with local laws can be qualified for a refund on specific products.

• When making a tax-free purchase, a visitor must present a valid passport.
• The system is used by the shop employee to enter visitor information.
• Next, the shop employee attaches the Tax-Free sticker to the rear of the sales receipt.
• Once a Tax-Free digital form has been produced, the visitor must authenticate the transaction at the airport.

VAT Refund Consultants in UAE - Reyson Badger

Reyson Badger, a premier VAT consultancy firm in Dubai, offers rapid and trustworthy services that simplify the VAT refund procedure for companies. Our expert consultants specialize in identifying eligible VAT expenses and preparing the necessary documentation, ensuring a hassle-free and accurate refund experience. With Reyson Badger, Customers can confidently handle the complexity of VAT Refunds. supported by expert guidance and a commitment to efficiency and precision.