VAT Refund for Foreign Businesses in the UAE

Introduction

The United Arab Emirates (UAE) allows foreign businesses not based in the GCC to claim a refund of the Value Added Tax (VAT) they paid on UAE expenses. This is especially beneficial for companies participating in trade fairs, exhibitions, training programs, or conducting short-term business activities in the UAE without a permanent establishment.

In this guide, we’ll walk you through the eligibility criteria, the refund procedure, deadlines, and common mistakes to avoid.

✅ Who Is Eligible for a VAT Refund as a Foreign Business?

According to Article 67 of the UAE Executive Regulations, a foreign business may apply for a VAT refund if it meets the following conditions:

The business is not resident or established in the UAE or any GCC state implementing VAT.

It has no fixed place of business in the UAE.

It is not registered or required to be registered for UAE VAT.

It did not supply any goods or services in the UAE, except for:

Reverse charge transactions

Temporary importation of goods

🌐 Which Countries Qualify?

Refunds are only granted if the applicant’s home country offers reciprocal VAT refund rights to UAE businesses. The UAE FTA maintains an internal list of such countries.

Example: If your company is based in the UK, EU, or other approved countries with mutual VAT refund agreements, you're eligible.

Ineligible: If your country does not allow UAE entities to recover local VAT, your refund request will be rejected.

💼 What Expenses Are Refundable?

Expense Type Refundable? Conditions

Hotel stays ✅ Yes If for business travel

Trade fair/expo fees ✅ Yes Must relate to business activity

Transportation & car rental ✅ Yes Business-related only

Professional service fees ✅ Yes Legal, consultancy, advisory

Meals and entertainment ❌ No Blocked under VAT law

Goods/services for resale ✅ Yes Must be exported or consumed outside UAE

📅 Refund Period and Deadlines

The refund period covers each calendar year (Jan–Dec).

The application must be submitted by August 31st of the following year.

The minimum refundable amount is AED 2,000.

This can be from a single or multiple invoices.

🖥️ How to Apply for a Foreign Business VAT Refund

Step-by-Step Process:

1. Prepare Required Documents

Certificate of incorporation (attested)

Proof of VAT/GST registration in home country

Original tax invoices

Bank account validation form

Passport copy of the authorized person

Power of attorney (if applying through a representative)

2. Create an FTA Account

Visit: https://eservices.tax.gov.ae

Create a non-resident login profile

Select: “VAT Refund for Foreign Businesses”

3. Submit Refund Form

Complete the VAT Refund for Foreign Business Form online

Upload all required documents

Enter refund amount (in AED) and invoice details

Submit the application before August 31 of the following year

4. FTA Review and Approval

FTA will:

Review invoices and supporting documents

May request additional clarifications

Accept, partially approve, or reject the claim

5. Refund Payment

If approved, refund is issued to the bank account within 4 months of submission

Notification is sent via email or the FTA portal

❗ Common Reasons for Rejection

Country of establishment has no reciprocal agreement.

The company has made taxable supplies in the UAE.

Documents are incomplete or unverified.

Expenses are not related to business or are VAT blocked.

Claim filed after deadline or below AED 2,000.

📌 Final Tips

Start compiling VAT invoices early in the year

Ensure documentation is official and translated into Arabic or English

Avoid claiming VAT on personal expenses

Consult a VAT professional for cross-border compliance

💼 Let Us Help You

At Sheikh Anwar Accounting & Auditing LLC, we assist foreign businesses with UAE VAT refund claims, document preparation, and FTA submissions — ensuring accuracy and compliance from start to finish.

📧 Email: info@sa-auditors.com

🌐 Visit: www.sa-auditors.com