VAT Refund Services in UAE

Are you a business operating in the UAE and wondering if you're eligible to claim a VAT refund? Don't worry; we're here to assist you at every stage of the process! Our team of VAT experts specializes in helping businesses like yours navigate the intricacies of VAT refunds, ensuring a smooth and hassle-free process. By offering dedicated VAT Refund Services in UAE, we assure that your business maximizes its VAT reclaim potential.

VAT Refund

A VAT refund, which stands for Value Added Tax refund, is like getting back money that a business has paid as tax when buying things. Let's say a business buys stuff like goods or services and pays a tax called VAT on those purchases. Sometimes, the government can give back this VAT money to the business. This happens if the business is registered for VAT and the things they bought are used for making taxable supplies. VAT refunds help businesses by giving them back the tax they paid on the things they need for their work, which helps them pay less tax overall.

Why Claim a VAT Refund in UAE?

Financial Savings:
Businesses save money by getting back the VAT they paid on certain purchases.

Enhanced Financial Strength:
These savings contribute to making the business stronger financially.

Competitive Advantage:
Businesses can stand out in the market by offering products or services at better prices.

Increased Cash Flow:
Receiving VAT refunds means more money flows into the business.

Reinvestment Opportunities:
Extra funds from VAT refunds can be used for: Buying new equipment & Covering day-to-day expenses

Tax Compliance:
It ensures that the business follows tax regulations correctly, avoiding trouble with the government.

Business Growth:

The additional money from VAT refunds can be invested in:
Expanding the business, Implementing new technology & Hiring more employees

Long-term Success:
These investments help the business stay successful over the long term.

Timeline for VAT Refund in UAE

When a taxpayer makes a claim for a VAT refund, the FTA processes and reviews it within 20 business days. The FTA will notify the taxpayer whether the claim is accepted or rejected. If the process takes more than 20 days, the FTA will notify the taxpayer and extend the deadline.

Procedure to claim VAT refund in UAE

• Log into EmaraTax: Use your username and password or UAE Pass. If you don't have an account, click "Create an account."
• Request VAT Refund: Select "Taxable Person" and proceed. Choose the VAT Module from the sidebar, then select "New Refund Request." Verify terms and conditions, then click "Start."
• Fill in Refund Details: Ensure bank details are correct. Enter the refund amount and add supporting details by downloading and uploading the required template. Add transaction details, save, and review your request.
• Submit: Agree to the terms, submit the form, and note your application number. You'll receive an acknowledgment and be notified of approval or rejection.

To know more about the VAT Refund Procedure in UAE, check out here.

Fields in the UAE VAT Refund Form

The fields mentioned below are all part of the VAT Refund Form (Form VAT311) used by businesses registered for VAT in the UAE to claim refunds for excess input tax. Here's a detailed explanation of each field:

• Tax Registration Number (TRN): This number is like your company's special ID given by the Federal Tax Authority (FTA) when you register for VAT. Make sure it's correct for your business.
• Total Amount of Excess Refundable Tax (in AED): This shows how much VAT you've paid on things you bought, which is more than what you got from selling your goods/services (input tax more than output tax). The FTA calculates this based on your previous VAT returns, minus any penalties you owe (except for late registration).
• The Amount You Wish to Have Refunded (in AED): Here, you write down the exact amount you want back from the excess VAT you paid (mentioned in point 2). Remember, you can't ask for more than what's shown in point 2.
• Remaining Amount of Eligible Excess Refundable Tax (in AED): After you ask for a refund (mentioned in point 3), this shows how much excess VAT you still have left that you can ask for in the future. It's like a balance you can claim later.
• Late Registration Penalty Amount (in AED): If you registered for VAT after the deadline and got a penalty, this field shows how much you owe. If you paid it already, it will show "Zero (AED)."
• Authorized Signature and Declaration: This part has spaces for 

1. • The name of the person in your company who's allowed to sign the form (in English & Arabic).
   • A place for that person to physically sign the form.
   • A statement saying you agree to give more documents if the FTA asks to check your refund claim.

How to Request a VAT Refund

• Eligibility Check: Before you apply for a VAT refund, make sure your business meets certain requirements set by the UAE tax authorities. This usually means that your business is registered for VAT and that the things you bought qualify for VAT refunds according to the law.
• Keep Records: Maintain correct and accurate records of everything you buy and spend money on if you want to get a VAT refund. This means keeping things like bills, receipts, papers about importing or exporting stuff, papers from customs, and any other papers that show what you paid VAT on.
• Prepare VAT Refund Application: Get the official VAT refund application form from the tax authority's website or office. Fill out the form completely and accurately, providing detailed information about your business, such as your VAT registration number, contact details, and bank account information for refund processing.
• Attach Supporting Documents: When you apply for a VAT refund, make sure to include all the necessary documents along with your application. These documents can be either original papers or electronic copies of invoices, receipts, shipping documents, customs declarations, proof of VAT payment, and any other documentation mentioned by the tax authority.
• Submit Application: Submit your completed VAT refund application with the supporting documents to the relevant tax authority within the specified timeframe. Ensure that all information provided is correct and that the application is signed and dated where required.
• Follow-Up: Check the progress of your VAT refund application and be prepared to follow up with the tax authority if needed. They may request any other information or clarification during the processing of your refund. Respond to inquiries to avoid delays.
• Receive Refund: Once your VAT refund application is approved, you will receive the refund amount through the payment method mentioned in your application, such as direct bank transfer or cheque. After you receive the refund, make sure to check that you got it and that the amount matches what you expected. Compare the refund amount with your records to make sure everything is correct. This helps you keep track of your finances accurately.

It's essential to comply with all requirements and deadlines specified by the tax authority to ensure a smooth and successful VAT refund process. Consulting with tax professionals or seeking guidance from the tax authority can also help navigate any complexities or questions related to VAT refund applications.

Documents Required for a VAT Refund

You'll need to include documents when you apply for a VAT refund. These documents can be either paper copies or electronic files. Here's what you should include:

• Invoices: These papers show what you bought and how much you paid for each thing.
• Receipts: These are like proof that you paid for the things you bought.
• Shipping Papers: If you're bringing things into or out of the country, include papers about how they were shipped, like bills or notes.
• Customs Forms: If you have to tell customs about your goods, include those papers too.
• Proof of VAT Payment: Show that you paid VAT on your purchases, like with VAT invoices or official documents.
• Any Other Papers You Need: Check with the tax people to see if there's anything else you should include with your application. Adding everything they ask for makes sure your application is complete.

Here is a detailed overview on the Documents Required for a VAT Refund in UAE

Reyson Badger - VAT Refund Consultants

Reyson Badger is a well-known company in Dubai that helps businesses and people to get their VAT money back quickly and reliably in the UAE. Our team of experts focuses on helping businesses figure out which expenses qualify for a VAT refund and making sure all the right paperwork is done correctly.

Claiming a VAT refund can sometimes be complicated and take a lot of time. But with Reyson Badger, you don't have to worry about that. Our team is really good at what they do, making sure everything is done accurately and fast. This makes the whole process easier for businesses, taking away any worries or difficulties they might have.