What is a VAT Refund?
Under FTA regulations, all registered businesses must submit a VAT return outlining the details of their sales and purchases for the tax period. Input VAT refers to the amount paid to suppliers for purchases or expenses, while Output VAT refers to the amount collected from sales. The input VAT amount can be offset against the output VAT amount.
Due to its complexity, businesses should seek expert advice to claim a VAT refund in the UAE before submitting a VAT refund form.
Timeline for VAT Refunds
VAT Refund: Helpful Tips
First and foremost, the tax refund file must be complete and fully prepared before you submit it to the tax office. Furthermore, all VAT refund procedures must be compiled correctly to receive your claim amount quickly and without any delays. The more common factors that can result in a delay include:
- Difficult administrative procedures
- Incorrect or insufficient documentation
- Missing deadlines when replying to the Federal Tax Authority
- Not understanding the indirect tax rules
Keep in mind that delayed or missed refunds and unclaimed tax credits can result in a negative cash flow and “tax leaks”, both of which can increase your costs of doing business and reduce your profitability in the process.
As a relief measure and in response to the COVID-19 (Coronavirus) pandemic, UAE businesses can expect to receive their VAT refunds earlier than usual. A number of tax professionals now believe that the Federal Tax Authority has accelerated the refund process for those businesses that have already submitted their returns.
We are here to help with Your VAT Refund
Our tax agency is registered with the Federal Tax Authority and is comprised of a team of professionals that are dedicated to providing the highest quality service and your satisfaction. We are happy to share our tax refund experience and expertise, especially when it comes to complicated, detailed, and tedious bureaucratic processes. We can assist you with:
Reviewing VAT returns, calculations of refundable VAT, working papers and check documentation for filing refunds
- Prepare documents and data templates for VAT refund applications as per laws
- Check for VAT non-compliance for your company
- Prepare and submit the VAT refund application
- Look over the VAT refund report on missing documents/points, respond to queries of FTA and re-submit after corrections
- Manage correspondence and communication with Federal Tax Authority
- Visit the tax office and handle the finalization of the VAT refunds
