Under the VAT guidelines – the Federal Tax Authority has crafted a scheme for the business visitors, wherein they can file a refund claim of VAT paid on expenses incurred in the UAE – thereby globalizing the UAE economy.
Earlier this year, in March 2022, the FTA announced that they will accept refund applications for the UAE VAT refund for the Foreign Business scheme. Non-UAE resident businesses need to understand whether they have incurred VAT and if they qualify for a refund. Here is all you need to know about the VAT Refund Scheme:
Who is eligible? Only qualifying non-UAE resident businesses, on certain expenses incurred during 2021 calendar year, and totaling more than AED 2000. Further, they should fulfill the below criteria:
- Not have any VAT registrations in the UAE
- Not conduct business in the UAE
- Must be registered with a competent authority and conduct business in that jurisdiction.
Under the below situations, a business will not be eligible for VAT refunds:
- A business supplies products/services in the UAE
- The tax incurred is one that is irrecoverable by VAT registrants in the UAE
- The FTA has listed eligible countries, so if your business is not one from the listed countries
- A non-resident tour operator
Now, the most important part to filing VAT refunds is the documentation process, which might not necessarily be the easiest, which is where you need VAT consultants in UAE. For the business VAT refund scheme, the below original hard copy documentation is a must:
- Original tax compliance certificate
- Original tax invoices
- Stamped proof of the payments for all the claimed tax invoices
- Proof of authority of authorized signatory
- Passport copy of authorized signatory
While this can get overwhelming, TRC Pamco – a firm providing VAT advisory services, can help you in application of VAT refund, review of documentation, preparation of details as required by FTA and continuous follow-up with FTA to expedite the refund process. They also advise you on the best foot forward to getting a hustle free VAT refund.