VAT Refund Dubai – How To Claim Vat Refund In UAE

Are you looking for how to claim VAT refund in Dubai and across the UAE? In this post, you will get all information about VAT refund Conditions, who can claim for refund and process to claim VAT refund.

The UAE Federal Tax Authority has appointed Planet as its unique tax refund operator for the Tourist Refund Scheme which will be rolled out in November 2018.

On new years eve 2018, UAE/Dubai, member of the GCC council, took a great leap and introduced the Value Added Tax(VAT). Prompted by the constant fall in oil prices over the last three years, the new VAT tax aims to generate additional revenues that would contribute 1-2 % of total GDP.

There are also fears that this could give rise to inflation. However, experts believe it to be a one-off thing. A large number of products having been included in the zero rate or exempted category would negate this momentary inflation.

How To Get VAT Refund In UAE

UAE is new to taxation. There is some apprehension about the new TAX regime. However, on the backdrop of falling oil prices, it seems the right step ahead for GCC countries to expand revenue resources. In VAT regime business owners/firms share the responsibility of tax collection and accounting.

As UAE is now not a VAT free country, So It’s Important to know about VAT Return and how everyone can file it.

Accordingly, business firms in UAE are all prepared to comply with the new rules. The process for registration, returns and payments have been up and running. Besides another important aspect that needs to be addressed is the VAT TAX refund Dubai process.

In this article, we try to understand the various scenarios in which vat refund is applicable to the newly introduced VAT tax in UAE/Dubai.

Recommended: VAT Refund Scheme Proposes Four Conditions for UAE Retailers

VAT Tax Refund Conditions for Standard Products and Services

VAT rate for standard products and services in UAE/Dubai has been fixed at 5%. If the input tax on purchases is greater than the output tax collected by business owners/firms and other service providers, VAT is refundable.

For example, A person, paying an input tax of 1500 DEH but collecting an output tax of 1000 DEH on sale, can claim a refund of 500 DEH. End customers cannot claim input vat refund Dubai.

However, business firms/owner are entitled to tax refund only under the following circumstances:

  • The business has to be registered under VAT.
  • The traders/businesses must charge VAT reasonably. Inappropriate VAT
  • charged on goods and services shall not be refundable.
  • Proper VAT invoices must be presented to authorities for claiming input tax returns.
  • Amount paid or payable after six months of supply date is not eligible for refund claims.

According to FTA (Federal Tax Authority) announced that The  VAT Refund Scheme for Tourists in UAE

Products and Services not eligible for TAX Refunds

Zero-Rated: Zero-rated products and goods are VAT taxable. The rate of the VAT is 0%. Any supply made has to be reported when filing Tax returns. Basic educational and health services, export of good outside GCC, first sale/rent of residential buildings etc have been zero-rated.

Any input tax paid on zero-rated products and services comes under Tax refund policies. The FDA is the final authority on this. Businesses supplying zero-rated products and services have to register for VAT.

Exempted: Any input tax charged for goods and services in the exempted category is non-refundable. Exempted supplies include local transport, financial services like life insurance as well as zero charge financial services. Businesses supplying only exempted products and services need not register for VAT.

Read more:  VAT Refund Scheme for Businesses in UAE

Q.  Can I Get a VAT Refund in the UAE?

15 Replies to “VAT Refund Dubai – How To Claim Vat Refund In UAE”

  1. Recently visited UAE as tourist. Purchases were applied VAT. But none mentioned about the refund available to tourists. How can I claim refund now

  2. I agree, UAE govt is trying to misled people into thinking that they can get refund. But when you reach airport, not even a single person is aware of how/what needs to be done for claiming VAT refund.
    There is no process yet to do it online as well, no website, no link. Forget airlines, even the customs office at the airport was clueless about the VAT refund process.
    This post contains same misleading information like other news articles which just tells that you can get refund but no clue of how/why.

  3. Hi,
    I did import from india and the value of vat auto showed in my Vat retrun. But i did not claimed refund under RCM. Want to know whether i can claim in next return under adjustment section.

      1. you are misleading the people who comment here. Any imports made by businesses registered under FTA can claim the VAT 5% charged on import of goods.

  4. 1. If a company purchase locally after paying higher vat like 1000dhs and selling further after adding vat 500dhs locally in uae(whether after manufacturing or trading) so can he get refund vat.?
    2. If yes where and how he has to file refund what is a process?

    3. If company purchase locally paying 1000Dhs and selling it in export outside uae then will get Vat refund?

    4. If yes then where to file refund and what is process?

  5. While entering the details in vat refund form 311, authorized signatory details were not auto filled and not allowing to enter details. Hence the form is not submitted. what should i do. even i tried call vat inquiry, but not so helpful. Let me know if have any solution

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