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How to File for a VAT Refund in the UAE: A Step-by-Step Guide for Taxable Persons

Are you a business operating in the UAE that has accumulated more Value Added Tax (VAT) on your purchases than you've collected from your customers? If so, you may be eligible for a VAT refund from the Federal Tax Authority (FTA). This guide will walk you, the taxable person, through the entire process of filing a VAT refund claim in the UAE.

Understanding VAT Refunds in the UAE

Before diving into the steps, let's establish the basics. A VAT refund essentially reimburses you for the VAT you've paid on your business purchases (input tax) when it exceeds the VAT you've collected from your customers (output tax) during a tax period.

Who Can Claim a VAT Refund in the UAE?

Any taxable person registered for VAT in the UAE can claim a VAT refund if their input tax is greater than their output tax on a VAT return. This includes companies operating in the mainland and most free zones (exceptions may apply).

Steps to File for a VAT Refund in the UAE

Gather Necessary Information:

• Login credentials for the FTA e-Services Portal.
• Bank account details (ensure they match your FTA registration).
• Bank account validation letter/certificate issued and stamped by your bank. This document should include:
  • Account holder name (matching your FTA registered name)
  • Bank name and address
  • SWIFT/BIC code
  • IBAN number

Access the VAT Refund Form:

• Login to the FTA e-Services Portal using your username and password.
• Navigate to the 'VAT' tab and then the 'VAT Refunds' tab.
• Locate the 'Request VAT Refund' box and click the 'VAT Refund Request' button.

Complete the VAT Refund Form:

• The form will be partially pre-filled with your information.
• Pay close attention to mandatory fields marked with an asterisk (*) and fill them accurately.
• Key fields include:
  • Total amount of Excess Refundable Tax (pre-populated based on past VAT returns)
  • The amount you wish to have refunded (must be equal to or less than the pre-populated amount)
• Upload the bank account validation letter/certificate as instructed.

Submit the Form and Receive Notification:

• Once you've reviewed and completed the form, click the 'Submit' button.
• The FTA will process your application within 20 business days.
• You'll receive an email notification regarding the decision on your claim.

Refund Processing (if Approved):

• If your claim is approved, the refund amount will be deposited into your nominated bank account within 5 business days.

Important Notes:

• Ensure your bank account details are accurate and registered on the FTA portal before submitting the claim.
• International banks without a UAE correspondent bank may lead to longer transfer times and potential fees.
• You can verify your refund status and balance through the 'My Payment' tab under the Transaction History section within the FTA e-Services Portal.

Additional Considerations: