How to Apply for VAT Refunds in the UAE

Introduction

Value Added Tax (VAT) was implemented in the UAE on January 1, 2018. While VAT is generally collected and paid to the Federal Tax Authority (FTA), in certain cases businesses and individuals may be eligible for VAT refunds. Whether you are a business, tourist, UAE national, or a foreign entity, this blog will walk you through the process of applying for a VAT refund in the UAE.

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✅ Who Can Claim VAT Refunds in the UAE?

1. Taxable Businesses (Registered for VAT)

2. Tourists visiting the UAE

3. UAE Nationals constructing new residences

4. Foreign Governments, Embassies & International Organizations

5. Foreign Businesses not based in the GCC

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🔁 Types of VAT Refunds in the UAE

Type Description

Business VAT Refund For input VAT paid exceeding output VAT

Tourist VAT Refund Via electronic kiosks at airports and borders

New Residence Refund For UAE nationals building residential properties

Foreign Business Refund For non-UAE established businesses

Designated Zones Refund Certain goods moved to free zones may qualify

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🧾 Step-by-Step Guide for VAT Refund (For Businesses)

1. Ensure Eligibility

• You must be VAT registered in the UAE.

• Your input VAT must exceed your output VAT in the period.

• Ensure all invoices are valid and meet FTA criteria.

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2. Log in to the EmaraTax Portal

• Visit: https://eservices.tax.gov.ae

• Use your EmaraTax credentials to log in.

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3. File Your VAT Return

• Navigate to “VAT” > “VAT201 - VAT Return”

• Complete your VAT return for the relevant tax period.

• If Box 15 ("VAT refundable") shows an amount, you may claim it.

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4. Submit Refund Request (VAT311 Form)

• Go to “VAT Refunds”

• Select “VAT Refund Request” (Form VAT311)

• Enter the amount you wish to claim (should match Box 15)

• Upload required supporting documents (optional unless requested)

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5. FTA Review and Approval

• The FTA may request clarification or documents.

• You will receive updates via email and EmaraTax dashboard.

• If approved, the refund is processed to your designated bank account.

🕒 Timeline: Refunds are usually processed within 20 business days, but may take longer if additional verification is required.

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🧳 Tourist VAT Refund Process

• Operator: Planet Payment

• Steps:

1. Ask for a Tax-Free Tag at stores partnered with Planet.

2. At airport/border, use self-service kiosks to validate purchase.

3. Show passport, boarding pass, and purchase receipts.

4. Choose refund method: cash or card.

📍 Airports: Dubai, Abu Dhabi, Sharjah, etc.

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🏡 VAT Refund for UAE Nationals Building New Homes

• Applicable for first-time residential construction by a UAE national.

• Submit Form VAT Refund: UAE Nationals – New Residences

• Required Documents:

o Emirates ID

o Property documents

o Construction contracts

o Invoices showing VAT paid

💡 Refund is applicable only on materials and contractor services, not on furniture or non-structural elements.

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🌍 VAT Refunds for Foreign Businesses

• Apply using Form VAT Refund - Foreign Business Visitors

• Eligibility:

o Not based in UAE/GCC

o No VAT-supplied goods/services in UAE

o VAT paid on eligible business expenses

• Refunds processed annually for minimum VAT of AED 2,000.

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📌 Important Tips for Smooth Refund Process

• Keep valid tax invoices

• Ensure TRN (Tax Registration Number) is correct

• Maintain bank account details in EmaraTax

• Respond promptly to FTA clarification requests

• Don’t delay – file refund within the deadline (within 6 months of return filing)

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📞 Need Help with VAT Refunds?

At Sheikh Anwar Accounting and Auditing LLC, we assist businesses and individuals in VAT return filing, refund applications, and FTA correspondence.

📧 Email us at: info@sa-auditors.com

🌐 Website: www.sa-auditors.com