VAT refund in the UAE

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VAT refund in the UAE: A taxable person is able to claim a refund of VAT when the input tax is greater than the output tax on the VAT return. It can also be initiated through the VAT 311 form available in the FTA portal.

Tax registrants can initiate a refund request either at the time of filing the VAT return or after submitting the VAT return.

Is there a time limit for applying for a VAT refund?

No, there is no limit set by the authority for requesting a refund. Therefore, tax filers can apply for a refund at any time as long as they do not owe a debt.

The time frame for VAT refund in the UAE

Where a taxable person claims a refund of additional refundable tax, the Federal Tax Authority shall examine the same within 20 working days and inform the taxable person of its decision to accept or reject the refund claim. . The Federal Tax Authority may notify the applicant that it requires more than twenty (20) business days to consider the application where appropriate. Once the VAT refund claim is approved, the amount will be refunded within 5 working days.

What are the documentation requirements for a VAT refund?

VAT Refund Application Form (Microsoft Excel Format).
5 Highest tax invoices (in value terms) from the standard rateable expenditure.
Top 5 government and commercial documents related to zero-rated supplies (by value)
5 Highest tax invoices (in value terms) related to sales and other and output.
IBAN verification letter.

What is an IBAN verification letter?

IBAN stands for International Bank Account Number. This letter must be issued and stamped by the applicant’s bank and contain details about the name of the account holder (must be the same as the name of the taxable person registered with the FTA), the bank’s Name, Bank Address, SWIFT/BIC and IBAN. The letter/certificate will be uploaded as an attachment along with the refund application.

Submitting a VAT refund claim

To submit a refund claim:

Log in to FTA’s eServices portal.
Go to the VAT tab, then the VAT Refunds tab, and access the form by clicking on VAT Refund Request.
Complete the form. Some fields are pre-populated using your account details. Ensure that the details you have entered are correct, then submit the form by clicking ‘Submit’ along with the working and relevant supporting documents.

How can we track the status of a VAT refund request in the UAE?

Pending	After the details are submitted, the form will move into status until the FTA processes the application.
Work in Progress	FTA has started reviewing the refund request.
Submit Again	FTA requires more information about refund requests submitted. The details of the information have been sent to the email address of the authorized signatory. FTA may also provide comments for your action on the form. The tax registrant shall respond within five (5) working days with the necessary documents/comments.
Reviewed	The authority has reviewed the refund request and initiated payment of the VAT refund amount to the bank account of the taxable persons.
Approved	The status will change from “reviewed” to “approved” on successful receipt of the VAT refund amount in the taxable person’s bank account.
Rejection	If the refund request form is rejected, the form will move to “Rejected” status.

VAT refund request can be rejected by FTA?

The answer is Yes. FTA reserves the right to reject the refund request if you have not complied with the following:-

There is no response to additional requirements (if any) within 5 working days.
Incorrect attachments.
Unparalleled summary with relevant VAT returns filed by the applicant.

Frequently Asked Questions

1. When will I receive the VAT refund I claim?

If you are in a position to pay (so that the amount of recoverable input tax exceeds the amount of output tax), you can carry forward the excess recoverable input tax and set it against any payable tax or administrative can prescribe against penalty. can offset against

Alternatively, you may request a refund of any excess receivable. This is done by answering “Yes” in the box at the end of the return. If you do, you will be redirected to the VAT refund request page.

FTA will notify you that your refund claim has been approved or rejected within 20 working days. However, where necessary, the FTA may inform you that it will take longer to consider the claim.

2. Is there a limit on the amount of refund that can be requested from FTA?

No.there is no limit on the amount that can be applied for a VAT refund in the UAE.

3. Can I apply for a VAT refund for multiple VAT refund periods in a single refund application?

FTA has proposed an Excel format that allows taxable persons to include details of multiple VAT return periods.

4. Can I get a refund for overpayments made to FTA?

Yes. Additional payments may be refunded by providing relevant supporting documents to the authority.

5. How soon will refunds be issued?

Refunds will be issued upon receipt of the application and subject to verification checks, with particular attention to avoiding fraud or false claims.

6. Is there any time limit to claim a refund from the authority?

Tax filers can apply for a refund anytime as long as they owe the debt.

7. Can I carry forward the excess refund in the FTA portal and adjust it against future tax payables?

Yes. A taxable person can adjust the excess refund due in the FTA portal against future VAT payments.

8. Do I need to add all VAT return (payable and refundable) details in excel format to get an additional refund in the FTA portal?

A taxable person needs to submit only a VAT return with the position “Refund” to get the refund amount from the authority.