VAT Refund Claim & Compliance in Abu Dhabi, UAE
Gupta Accountants offers a range of services in relation to the VAT Refund in UAE as per the UAE VAT law, rules, regulations and refund conditions and assist to comply with your other tax obligations under UAE VAT in Abu Dhabi, UAE.
Brief Notes on VAT Refund:
- Taxable Persons are able to request a VAT refund at any point when there is a credit or when the input VAT is greater than output VAT.
- Every Taxable Person is required to file a VAT return summarizing the VAT due to the FTA for the tax period. When the input tax is greater than output tax on a VAT return, the Taxable Person is able to request a VAT refund after submission of the VAT return or at any later time when there is a credit owed to them.
- Where the Taxable Person makes a claim for a refund of excess refundable tax, the FTA will within 20 business days of an application being submitted, review the application and notify the Taxable Person of its decision to accept or reject the refund claim.
- The FTA may notify the applicant that it requires a longer period than (20) business days to consider the application where appropriate.
Submitting the Claim:
- Login to the FTA e-Services Portal.
- Initiate the form: go to the ‘VAT Tab‘ and then go to ‘VAT Refunds’ tab. Click on ‘VAT Refund Request’ to access the form.
- Complete your Refund Form: Fill in the form field by field. Note that some of the fields are pre-populated using the information contained in your account User Profile. Please ensure that the information is correct before completing the form.
- Submit the Claim: using the ‘Submit’ button.
- You will receive an email notification from the FTA on the result of your application.
- Once your claim is approved, the amount will be returned within 5 business days.
- Verify your balance post the approval: Once you receive a confirmation email of the refund, you may check your balance through the ‘My Payment’ tab under the Transaction History section
Contents of the VAT refund form VAT311 : The VAT refund form contains the following fields:
- TRN (Tax Registration Number): This field is pre-populated based on the information in the taxpayer’s account in the User Profile tab. It’s advisable to verify if the correct TRN is listed.
- Total amount of Excess Refundable Tax (in AED): This field is pre-populated based on the formula, Refund - Penalties = Excess Refundable Tax. This includes refund reported in all previously submitted VAT returns, and all administration penalties due except for the late registration penalty.
- The amount you wish to have refunded (in AED): The amount you enter must be equal to or less than the amount displayed in the Total amount of Excess Refundable Tax field.
- Remaining amount of eligible Excess Refundable Tax: This field is pre-populated with the amount of refundable tax that you can apply for in the future.
- Late registration penalty amount (in AED): This field is pre-populated based on the penalties imposed on you and whether you have settled the penalty amount or not: If you’re free from penalties, then the field will display Zero (AED). If you have been charged a penalty, which you have paid, then the field will display Zero (AED). If you have been charged a penalty, but you’re yet to pay the amount at the time of claiming this refund, then the field will display the penalty amount. If the refund amount is negative after deducting the penalty amount, your application will be automatically rejected after submission. If the refund amount is positive after deducting the penalty amount, only the balance will be submitted to the FTA for refund claim purposes.
- Authorized Signatory and Declaration: The authorized signatory is pre-populated by the system in both English and Arabic. Make sure you read the declaration thoroughly before ticking Yes to submit the form.
Notes on Special Refund : Business visitors in Abu Dhabi, UAE
Eligibility criteria - Foreign business owners can apply for VAT refund if they satisfy the following eligibility criteria:
- The business should be located in a GCC member state other than the implementing state. The business should be a foreign entity that carries on business operations, but does not have a place of establishment or fixed establishment in the UAE.
- The business owner should not be a taxable person in the UAE.
- The business should be registered in the GCC member state where it’s located.
- The business should be located in a country that provides VAT refund to UAE entities.
VAT refund limit - The minimum amount of each tax claim submitted by business visitors under the Foreign Businesses Scheme is AED 2000.
Timeline - The timeline for each refund claim is 12 calendar months.
Notes on Special Refund : UAE nationals involved in building new residences in Abu Dhabi, UAE.
Eligibility criteria - The person claiming the refund must be a UAE national, and they should provide supporting documentation showing their national status, such as a family book or passport.
What is reclaimable?
VAT refund can be claimed if the expenses meet the following criteria:
- Usage of expenses - The expenses should be used on a newly constructed building solely intended to be used for residential purposes by the applicant or their family. You cannot claim refund for expenses spent on buildings like hotels, guest houses, and hospitals.
- Nature of expenses- The expenses should be spent on certain goods and services: Services provided by contractors (including builders, architects, and engineers). Building materials and goods that are incorporated into the building by the contractors. List of incorporated goods that are eligible for VAT refund: Central air conditioning and split units, Fire alarms and smoke detectors, Doors, flooring (excluding carpets), window frames and glazing, wiring (when embedded inside the building), Sanitary and shower units, Kitchen sinks, work surfaces, and fitted cupboards
- The date of completion is the earlier of: When the building becomes occupied or When the building is certified as completed by the Municipality as mandated by the FTA
Gupta Accountants competent team as Vat Consultants, provides supports at all the stages of the UAE VAT.
Why Gupta Accountants ?
- Professionally qualified and experienced VAT Consultants
- Timely and Correct VAT Refund Services
- Cost Effective and Best VAT Refund Services
- Express and online delivery of the VAT Refund Services
- Compliance to International Industry Standards & Relevant Applicable Local Rules and Regulations.