What is a tax refund in Dubai?
Tax refund is the reimbursement of overpaid taxes to taxpayers by the FTA. In the cases when taxpayers pay more taxes than the actual tax liability, the FTA repays the excess amount in the form of a VAT refund in Dubai.
What is a VAT refund in Dubai?
Businesses in UAE must file VAT returns to the FTA. In the VAT returns filed, if the input tax is higher than the output tax, the business can claim the excess amount. If the output tax is higher than the input tax, the business must pay the excess amount to FTA. The Output tax is the tax imposed on sales of a business whereas the input tax is the tax collected on purchases, expenses, and imports of businesses.
If taxpayers don’t intend to file for VAT refund in UAE, the excess of input tax over output tax is carried forward next year. The amount is adjusted in subsequent tax periods including penalties.
What is the process of claiming a VAT refund in UAE?
Claiming a VAT refund in UAE is a simple process for businesses. The steps are as follows:
Step 1: Log in to the FTA’s e-Services portal with your credentials.
Step 2: On the portal, go to the VAT tab, under which there is a VAT Refunds tab, where you must click on the VAT refund request. Once you click on it, the VAT refund form will appear.
Step 3: Fill up the form. You need to fill in only a few details since some details from your account already appear in the relevant place. Do not make any errors in filling up the form. After filling correctly, check it once, and click on Submit.
Step 4: On submission of the form, FTA sends you an email to notify the status of your refund application.
Step 5: You can check the receipt of the claimed refund by checking the My Payment tab under the transaction History section in the e-Services portal.
Necessary fields to fill in the VAT Form for VAT return in UAE
VAT-registered taxpayers must fill the following fields in the VAT form for VAT refund in UAE. There are some pre-populated fields, for which you must just verify if the information is correct or not and there are some fields, wherein you need to fill information manually:
- Tax Registration Number (TRN): Pre-populated information
- The total amount of Excess Refundable Tax (in AED): Using the formula, Excess refundable tax = Refunds – Penalties, Pre-populated information
- The amount you wish to have refunded (in AED): You must fill this information manually as an amount you wish you would get in VAT refund in Dubai. This amount is smaller or equal to the previous field
- The remaining amount of eligible Excess Refundable Tax: This information is pre-populated
- Late registration penalty amount (in AED): Pre-populated information based on the settlement of the penalties that are imposed on you
- Authorized Signatory and Declaration: Pre-populated information. You just must read the Declaration, tick Yes, and Submit.
Get prepared to claim what is yours!
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When the taxpayer receives a VAT return in Dubai?
On receiving the claim for a VAT refund in UAE, FTA reviews the application within 20 days. Whatever the FTA decides regarding the acceptance or rejection of the claim, FTA notifies the same to the taxpayer. If FTA is unable to process the VAT claim within 20 business days, it notifies the taxpayer of an extension of the deadline. Once the FTA approves the claim for refund, it processes the refund within five business days.
Why choose NR Doshi & Partners’ services of VAT refund in UAE?
NR Doshi & Partners is an expert professional services firm that can help you with VAT refund services in Dubai. We also conduct a review and analysis of your submitted VAT returns to understand if the VAT refund situation exists or not to avoid any false VAT refund in UAE.
Other than VAT refunds, we assist our clients in multiple activities under our VAT consultancy services. Our VAT refund consultants in Dubai provide services of VAT registration, deregistration, returns filing, accounting services, handling disputes, penalties, audit, and health check. We keep you VAT compliant always.
- We are FTA-registered tax agents with the required knowledge and experience in handling VAT refunds in Dubai for all types of businesses serving in different industry sectors.
- Our impactful team of VAT consultants, business analysts, and tax experts provides you high-quality VAT return services that save you time and money.
- We ensure to handle the administrative procedures for filing a claim, collect and put in place all correct documents, and successfully submit VAT return in UAE so that you achieve VAT compliance.
Is it compulsory to claim a VAT refund in UAE?
The taxpayer can either claim a VAT refund or let the excess input tax be carried forward to subsequent periods for adjustment with payable taxes and penalties or refund claims in some other tax year.
Can foreign business owners apply for a VAT refund in UAE?
Yes, foreign business owners can claim a VAT refund in UAE provided they satisfy the FTA-stipulated conditions.
Can I claim VAT refunds without submitting the VAT return?
No, you need to submit the VAT return for a specific tax period. It calculates your VAT liability for the year. You can claim a VAT refund only if in the returns filed, your input tax is more than output tax.
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