Understanding VAT Refund in UAE
A VAT refund in the UAE helps businesses get back the tax they paid on company expenses. When a firm’s input tax (VAT on purchases) is more than its output tax (VAT on sales), it can request a refund from the Federal Tax Authority (FTA). This refund process improves cash flow and reduces the financial burden on companies.
Businesses can apply online through the EmaraTax portal. They must provide a Tax Registration Number (TRN), valid tax invoices, and authorized signatory approval. Once submitted, the FTA reviews the request and processes the eligible refunds.
Main Purpose of VAT Refund
The main aim of the refund process is to:
- Reduce the financial load on registered companies.
- Help firms manage cash flow more effectively.
- Encourage accurate tax compliance among UAE businesses.
Why Businesses Should Claim VAT Refund in UAE
Claiming a VAT refund in the UAE is a smart financial move for every business. It allows them to recover the excess tax paid during their operations.
When businesses reclaim VAT:
- They improve cash flow for smoother business operations.
- They reduce their overall expenses and improve liquidity.
- They can reinvest the saved funds into business expansion.
The UAE government’s tax system supports this refund process to help companies remain competitive and financially stable. It also motivates businesses to maintain clean tax records and proper documentation.
Step-by-Step VAT Refund Procedures
1. Login to EmaraTax Portal
Start by logging in to the EmaraTax system using your username and password or UAE Pass.
If you’re a new user, click “Create an Account” and set up your profile. Once logged in, the dashboard will appear with your registered tax details.
2. Create a VAT Refund Request
- Choose “Taxable Person” as your user type.
- Select the VAT module from the left-hand menu.
- Click on “New Refund Request” to start the process.
- Agree to the terms and proceed by pressing “Start”.
3. Enter Refund Details
Before submitting the form:
- Double-check your bank details.
- Add the amount you want refunded.
- Upload supporting documents like invoices and payment proofs.
- Ensure your uploaded files match the FTA’s required format.
After uploading all details:
- Click “Next” to review your refund form.
- Accept the declaration and submit the request.
- Save your application number for future tracking.
The FTA will confirm your submission and notify you of approval or rejection via your registered email.
When Will You Receive the VAT Refund?
After you submit your refund application, the FTA reviews and processes it within 20 business days. If approved, the refund amount is transferred to your registered bank account within five working days.
Sometimes, if additional checks are needed, the FTA may take more than 20 days. Applicants are advised to ensure all documents are accurate and complete to avoid delays.
Required Documents for VAT Refund in UAE
To ensure successful processing, applicants must attach the following documents:
- Bank validation letter or certificate (especially for foreign banks).
- Proof of payment for overpaid or wrongly transferred credits.
- Top five tax invoices for standard-rated purchases.
- Five largest invoices for zero-rated or untaxed sales.
- Export-related evidence, both commercial and official.
- Transaction summary sheet with supporting entries.
These records must match the company’s FTA-registered name and TRN. Any mismatch can result in rejection or delay of the claim.
VAT Refund for Tourists in UAE
Tourists visiting the UAE can claim VAT refunds for purchases made during their stay. This is done through the Tax-Free Shopping system at participating stores.
Steps for Tourists to Get a VAT Refund:
- Make a purchase at a store that offers tax-free shopping.
- Show a valid passport at the time of purchase.
- The store will issue a tax-free receipt with a digital form.
- At the airport, validate the purchase through the electronic kiosk.
Only non-UAE residents are eligible for this refund. Tourists must depart the UAE with their purchased goods within 90 days from the date of purchase.
VAT Refund Experts in UAE – Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing, a trusted tax consultancy firm in Dubai, provides fast and reliable VAT refund assistance for companies across the UAE.
Our skilled professionals handle:
- Preparation and filing of refund applications.
- Verification of supporting invoices and compliance.
- Coordination with the Federal Tax Authority for quick approvals.
With MAK Auditing, businesses can focus on their growth while we handle the tax complexities with precision and care.
What Can Help – Mubarak Al Ketbi (MAK) Auditing
At Mubarak Al Ketbi (MAK) Auditing, we’re always ready to guide you through UAE’s VAT system. We believe that teamwork and proper planning make every task easier. After all, “Rome wasn’t built in a day,” and financial success takes the same steady effort.
Visit Us or Contact:
- Address: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact / WhatsApp: +971 50 276 2132
- Geo Coordinates: 25.2807189480206, 55.41846458517048
For More Information:
- Visit our office for personalized VAT assistance.
- Call or message our experts for quick consultation.
- Let us handle your VAT refund with confidence and accuracy.