Everything You Need to Know About 2022 UAE Business VAT Refund Scheme

VAT refund in UAE


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.

All You Should Know About Free Zone company Setup in Dubai

All You Should Know About Free Zone company Setup in Dubai

UAE is one of the global leaders in business and trade – and if you want to capitalize on this market – setting up a free zone company in Dubai is a must! If you register your company in a free zone, you can organize international business and leverage the commercial advantages granted by the UAE legislation.

A free zone company in the UAE gives you 100% business ownership, 0% taxes, flexible office solutions, and the possibility to own a physical space inside the free zone.

The two most common legal entities within the free zone include Free Zone LLC and Free Zone Establishment, however, these two aren’t available in all the free zones so before you register the company, understand the requirements for each of the free zones and then select one.

Once you have finalized the free zone and your trade name, you need to apply for the trading license within the free zone. Depending on your business activities, free zone company setup professionals in Dubai can help you apply for the license, whether you want it for advertising, music production, trading, manufacturing, or e-commerce business.

An office address is a must, be it physical or virtual – so get that going, while also getting pre-approvals, registering your business, and obtaining the license.

How can you set up a free zone company? Well, firstly, consult a professional, and reap the benefits of their knowledge. A free zone setup service in Dubai will help you save up on time and resources by doing the work for you while ensuring you are always compliant with the law, and when a problem shows up – with their experience, they will provide you with customized solutions.

If you’re looking for freezone audit services in Dubai Airport Free Zone, Jebel Ali Free Zone, DMCC Free Zone, or any other free zone audits, reach out to the team at TRC Pamco, a renowned tax firm in Dubai, and they will help you get 100% foreign ownership through efficient company formation services.

How to do VAT Health Check?

A VAT health check is super essential for every business, to ensure authenticity and compliance of organizational processes, under the VAT guidelines – and thus successfully submit accurate numbers for VAT returns.

A VAT health check assures the organization of fair treatment on VAT, given the transparent audit trials and reconciled accounts. A health check begins after discussing the business, identifying the areas that need focus, and reviewing the VAT workings and systems being used. In the UAE, the Federal Tax Authorities are authorized to perform tax audits – thus it’s important for every business to be VAT compliant, to ensure no penalties on your business.

How is a VAT health check conducted?

A VAT health check is conducted by first independently reviewing the client’s tax filings to get a true and fair view of their business. Post this, if there are any questions, it’s put forward to the clients. After gathering all the past and present information, a thorough study is undertaken on the accounting records, the calculations, the tax liabilities, tax compliance, and tax records. Annual VAT returns are compared with the accounts, to ensure they provide the same numbers. It’s all about knowing if VAT is fairly treated by an organization and reports accurate information to the FTA.

A VAT health check is a must for every business. But why? A VAT health check conducted by qualified VAT firms in the UAE helps you:

  • Identify opportunities to maximize your VAT returns
  • Highlights all areas of concern, helping you mitigate risk in the most efficient manner
  • Reviews your VAT liability, helping you optimize it.
  • Identify if the maximum VAT benefit is being achieved by your business
  • Constantly reviews your VAT systems to identify arising opportunities or improvements
  • Find errors or gaps before the FTA, thus potentially mitigating any penalties or defaults

If you are finding any discrepancies in your business, and looking for a VAT health check, reach out to TRC Pamco, a VAT consultancy in the UAE. They provide Health check services with their vast experience and knowledge on the subject matter.